It’s confusing. You are bombarded by credit card offers each time you check the mail or answer the phone. Yet, financial experts are telling you that they are evil. Well, to many people they are. But to those who can use them wisely, they aren’t all that bad.

Credit cards offer an easy debt pit to fall into. It is easy to loose track of how much you have charged to the card. Before you know it, the interest is out of control, and you can’t afford the minimum payments.

But credit cards can be beneficial in establishing credit history. They provide quick money in emergency situations. They are easily obtained. But you have to stay out of that debt pit.

You don’t need more than one credit card. Think about it: Why would you need more than one card if you only use it for emergencies? What does more than one card give you, but temptation? One card looks good on your credit report, too many will tell potential lenders to beware. If you have too much available credit, there is often the fear that you will go out and max all the cards out. Believe me — you only need one card.

When it comes to getting that one card, you should choose it wisely. I don’t know if you get the mail that I do, but it can be crazy. There are some months that we receive 100 credit card offers. Then they call you. There are so many interest rates and terms available today.

What you want is a card with a low interest rate and no annual fees. You should look for a grace period of at least 25 days, or you will be paying unnecessary interest charges.

You have to make sure that you read all of the fine print. Read it twice. Some cards allow you to miss a payment twice, some will hike up your interest if the payment arrives after 1 p.m. the day it is due. Take your time and pick the best card for you.

Be cautious. The low rates offered in the mail are often introductory only. They are called teaser rates. They will take a high jump after three to six months. You may find that a company raises your rate for no apparent reason. No matter what the excuse, the fact is that they can raise your rates at any whim. You have the freedom to take your business elsewhere.

Once you have the card in hand, don’t use it. It sounds easier than it is. A credit card whispers that you can have everything you want. But you have to know better. There are many people that charge on their cards, that pay the bills off in full when they arrive. This is a good way to keep track of spending, especially for a business. If you are disciplined enough to do this, then go for it. If you are like me, you better put that card where you can’t get to it.

Emergencies happen. Use the card and then figure out a way to pay it back as quickly as possible. Don’t freak out and don’t worry. That is what the card is for.

It can be a great feeling when your credit limit is raised. But you should call and decline the offer. Low lines of credit will help you from overspending. You know that you can pay back $1,000 if necessary, so stick with that. You shouldn’t have a $10,000 credit card if you know that if you have to pay that amount back it will kill you. Feel as flattered as you like, but turn it down.

And last, but not least, don’t take out cash advances on your card. It isn’t worth it. There are higher fees and finance charges for these transactions. You could even be charged up to 3% of the amount you take out, plus the interest rate. Your card is not for cash purposes, and that’s all there is to it.

Your credit card can help your credit rating. It provides you with a credit history and shows lenders that you are a responsible borrower. If you use the card wisely, you can have all of the advantages that come with a card, and still keep your financial future out of the debt pit.

There comes a point in your life when you realize that you have to change the way you handle your money. The proper management of money is one of the most important things that you can do for yourself and your family. It not only gets your money where it needs to be, but emotionally, being financially stable will prevent lots of stress and lack of sleep.

There are three things that are often overlooked that can you should do to become financially stable.

Saving on education

Start by consolidating your student loans, which can give you a surprisingly lower interest rate. You will only have to make one payment per month, instead of three separate ones. You get to lock in a lower rate, which may even go down in the future. For example, with my student loans consolidation, if I pay all of the payments on time for the first year, my rate will be further reduced.

Consolidation can give you a lower monthly payment, which is a big plus for students who are just entering their employment years. You may even be able to extend your repayment term, lowering your payments, but resulting in a little more interest over time. But remember, this is a minimum payment approach. You can always increase your payments as your finances improve.

If you are a parent with PLUS loans, you can also consolidate. Rates are adjusted in July and tied to short-term Treasury bills. By consolidating, you can lock in a rate for the life of the loan, it is no longer variable. You can even do this before you child finished college.

If you are already making payments, you can consolidate. You can even consolidate several PLUS loans from several children into one loan. Your limitation is that most lenders require a minimum balance for consolidation.

You can apply for financial aid on January 1 through a FAFSA, or Free Application for Federal Student Aid. If you have a high school senior, go ahead and start the process as soon as possible. You will need your salary and tax information for the past year. You can update your application if there is a significant change in this year’s taxes.

Filing your taxes early

My husband starts itching to file our taxes sometime in December. It’s not a bad idea. Keep a file to collect all of your tax information in throughout the year. When the file is complete with your W-2’s and other papers, you can go ahead and start your taxes. There is no searching for everything.

Filing early will help you avoid all of the hassle and stress associated with tax day. Don’t be afraid to file electronically. It is easy and efficient, giving you a refund in as little as 10 days. There is also less room for errors when you file electronically.

Donate to charity

What you put out comes back to you. We have to take time to remember others. When donating goods and money, take time to make sure that you are donating to a worthy cause. Keep good records and don’t wait until the end of December to sneak in that donation just for a deduction. Pick out a few, well-managed charities that you will give to throughout the year.

These are just three things that we often forget about. It is important to keep yourself and your finances healthy – all year round. The best way is through actively managing your money. Schedule time each day to think about your money, then don’t worry about it the rest of the time.

No matter what you know you can spend, the house you really want will be just out of your price range. It may have everything you want, but it is just above what you can afford. This happens to people who can afford a $150,000 home and those who can afford a $1 million home. It’s always just a little pricier.

Stretching your finances to fit your dream home is common today. Whenever I have applied for a mortgage, the lender always says I can afford more than I have calculated. While you should look to your finances and spend within your means, there are some reasons that people increase the price range of their home purchase.

Using money you don’t have

If a home is more than you can afford, you will have to finance. You may be surprised to find that you qualify for a higher mortgage than you thought. While it pays to be conservative, you may find that the risk is okay for you. There are mortgages available that require as little as 10% down. If you plan to stay in the home for a long time, you will gain equity, though slowly.

Let’s look at the numbers. You buy a house for $150,000 with $15,000 down. The house appreciates by 10% each year for two years. You have made $30,000 in the increased value of your home. That is a 200% return on your investment. If you had purchased a $200,000 home with the 10% appreciation, your gain would have been $40,000. This is a best case scenario, not all homes appreciate to this extent.

Added tax benefits

There may be added tax benefits to having a larger mortgage. The interest paid on most mortgages is tax deductible. The more you borrow, the greater your tax shelter.

More stability in getting what you want now

Moving is awful. It sounds fun, but really stinks when you get into doing it. There are many financial and emotional stresses to buying and selling a home. You could buy a smaller home now and move up in a few years, but it might not be worth it to you. You could just buy the bigger and more expensive home and stay in it for a long time.

Look at the closing costs for buying, selling and buying again. It may be better just to buy the more expensive home. And you get what you want.

But, it all comes down

What goes up comes right back down. House prices will eventually fall. Interest rates, economies and the weather can affect the value of your home. You should make sure that you are buying a home that will hold its value at the least. You know that you are stretching yourself, don’t do it for something that is worth less than you put into it.

There are many options out there when buying a home. You can buy conservative and worry-free in your price-range. Or you could stretch a bit and be content in getting what you want. There isn’t anything wrong with making sacrifices to make your finances work.

You want to buy your own home, only you aren’t sure if you can get a mortgage. You can look at a few things on your own to determine if you might qualify. It’s simple — you only have to look at what the lender will look at.

Start with your employment record. Hopefully, you have a good work history. You’ve been at the same job, or in the same field of work, for many, many years. If you have recently been transferred, get a letter from your employer showing that you aren’t a new employ to the city, but a transfer. A good employment history shows that you aren’t a risk for just up and moving on, leaving your mortgage in default.

Now you need to know what your credit report is telling lenders. Once a year, you can order a free copy of your report from each of the three credit bureaus — that equals three free reports each year. All of your debt obligations will be listed on your report. make sure that any accounts you have paid off are reflected as such. If there are negative reports that are accurate, go ahead and write down your explanation of what happened. The lender will ask you later, so go ahead and be prepared.

You may want to go ahead and look at your credit score. It will vary according to each reporting agency. What you want is a score that falls as high as possible. You still have a chance at a mortgage if you don’t have an excellent score, but you may need to provide extra paperwork or pay a higher interest rate.

After your credit, the lender is looking at three numbers: your loan-to-value ratio, your housing expense ratio and your total expenses ratio.

The loan-to-value ratio is the first thing they will ask you: How much do you want to put down? This is the percentage of the property’s value that you are financing. For example, the home you want to buy is priced and appraised at $100,000. You put $20,000 down, or 20%. You are asking for an 80% mortgage. The more you put down, the less of a risk you will be considered.

The housing expense ratio is the percentage of your gross monthly income that will go to pay your housing costs. Your costs will include your payment, mortgage insurance, property taxes and hazard insurance. You will be expected to spend less than 28% of your monthly income towards your housing costs.

Your total expenses ratio is the percentage of your gross monthly income that is spent to pay all of your debts. These debts include your housing costs, car loans, child support, credit cards and student loans. The lender is looking for you to spend less than 36% of your income towards your minimum payments.

The lender may also look at your bank account statements to see how long your cash reserves have been in your account. They may ask for several months of statements. Most lenders are simply looking to see that you have the money to handle your down payment, closing costs and first payments. Many want to see that the money has been in your account for at least six months, though many are flexible in this.

If you find that you don’t fit these three key numbers, don’t give up yet. Go in and talk with a lender. There are exceptions made for certain circumstances. For example, if you have excellent credit and little debt, you may be able to exceed the 28% housing ratio if you show that you have been paying more than that in rent for a long period of time. You are showing that you aren’t in risk of defaulting on the mortgage.

Keep in mind that it never hurts to ask. If you are turned down for financing, ask what you can do to improve your lendability. Ask the lender exactly what you should do and if they would consider lending to you in the future. This shows that you are persistent, willing to commit and dedicated to making your finances work. Basically, it shows good character. Taking the time to be prepared can really impress a lender. Don’t be surprised when you go in to meet with a lender, know your financial situation in advance.