doesn't matter. but, i got this letter specifically this month because of some changes. talk us through that. >> hell have no fury like carmen sworn. one of the two requirements of the card act that became enforceable thursday the 20th, first, credit card issues now have to give you a 45-day advance notice before they send you a letter like this or change the interest rate like what they've done, increased it. if they close your account, no notice required. if they increase your interest rate, notice required. they've complied with the new provision of the card act. >> the other part is how many days go between when they bill though versus when your bill is due. >> that's what i thing is the better change that took effect thursday. the 45-day i thing is a waste of

ink. you have to be given 21 days from the day they mail or e-mail your statement before they can set the due date. today or in the past it was 14 days, right? >> yeah. >> this gives people basically a little of a safety net, seven additional days to make the payment before they are past due. you know who win snz. >> who. >> the people who get the statements via e statement. you lose a little in the mail -- >> a couple days here and there. >> the e statements you're talking there's more than 14 days, this is all august 20th. however, regarding the card act, changing my rate, amex changing my rate from a fixed rate to virable rate has a lot to do with growing the profit right now and making the changes before the regulation comes into effect, right? >> by converting it from a fixed rate to variable rate, they can still change your interest rate,

which after february 2 2nd of next year is going to be much more difficult to do if it was in fact still a fixed rate card. there are a dozen ways to skin a cat. this is one of the way they are skipping the cat, converting from fixed rate to variable rate. >> it is not just amex, many card carriers are doing this. but you made a very funmy point when we were talking earlier. once they raise your rate, they will -- >> convert it back to fixed rate. we are laughing out of discomfort because it's really, really bad that that's pretty much what's going to happen. the bottom line here to save money and stay in charge by not carrying a balance. if you do, manage your cards so they don't manage you. that means shop around, if you don't like what you got, pay attention to all of the changes in every bit of mail you get and have a system to pay them down. we have folks looking to do just

that, to save money by getting rid of that balance, get back in the driver's seat with the credit card. it's time for the otm credit card clinic. dan in ohio, you have worked your debt down about $10,000, not bad but still have a good chunk to eat away at. you don't have cash savings. >> caller: my wife and i have been trying to get rid of credit card debt for a while and setting about $1,000 to credit card and saving $400 a month. with the economy the way it is and jobs not being guaranteed we should focus to the savings and only sending $500 to credit cards. now it seems like things keep coming up here and there where we're still able to send the $500 to the credit card. should we start sending $1,000 to the credit card and less to savings? >> here's the thing, dan. you have about 23,000 in credit

card debt, don't have retirement safgsz, you are still young. but there is a battle right now. it is not just you. a lot of people are battling between saving and paying down credit card debt. i'm a big fan of you have to have something, you should concentrate away on socking away at savings. it is making it more expensive to do that. >> this is the eternal struggle, do i put money towards my expensive credit card debt? dan has seen the light, not a moment too soon. he's knocked the credit card down about 11,000 grand which is about a third of what he owed. that's the significant change. he's got really, really rock solid credit scores. >> we want him to keep the scores. he's still able to make the payments which is important. he's in a good position with his mortgage, he's in a fixed rate. oh, my gosh, what's my new

payment going to be. he needs to kind of focus on getting the debt paid down and be very very con she ent shus about -- >> most personal finance folks, we always advise to pay ost debt rather than have cash in the bank. at this point the job market is so unstable, you need some kind of cash cushion, however, we've got to get you out of debt, you send your numbers and let's look at your current plan. you have $23,000, your highest interest rate, hoo ray for you. 2.99%. >> is that real? >> pretty amazing. what you're paying now pretty much the minimum, will take you four years and six months and $1400 interest which is a lot. i'm going to give you a plan which some folks will say this is not enough money. i want you to concentrate on putting some cash in the bank but in the meantime add $100 a

month to the highest rate card, the 2.99, you'll shave a whole year off. you'll be done in three years and six months. if once that cash reserve is built up, you can put more money towards paying off the debt. here's a to do list for you. first of all, i want you to ought mate your banking. you told us you were kind of pulling money into a savings account. put it in an account separate from your check from the bank so you don't see it. monitor your spending. you're saying it's hard to find where the money is going. pull together your receipts for a month and tally them up and find out where that money is going so you can find more money to save and then pay off the debt. what do you think? can you do it. >> caller: i think it's an awesome plan and we'll get started right away. >> thank you, dan. we want to see you hack away at that debt too. roger in ohio. you've got quite the house of cards. talk to us.

>> caller: hi, carmen. well, basically started back in march, paid off our house in march and we thought we would be able to tackle the credit card debt once we got that out of the way. started looking at the bills, did the math, and with the economy the way it is, hours got cut at work, we work at the same place, they are doing a lot of layoff stuff. then a card raised my interest rate and another card raised my percentage of minimum monthly payments to the point where we're just -- our backs are against the wall, looking for help. our financial -- we can't meet our financial obligations right now and things are a little tough. >> you do have, you do have pretty good i.r.a.s right now, at least you have the savings there. i wish i had been there before you paid off that home. it's more important to pay off the cards ahead of time. right now the question here,

roger, i know you were asking. john, saw roger's information, is this bankruptcy? >> i saw roger's information and his wife's information. his score, 727, mid 720s, wife's credit cord in the 750 and up. the challenges he faces with bankruptcy, a lot of your credit card debt is separate, meaning that a lot of the accounts in his name and some in her name. if they do file bankruptcy, all of the debt they have because if they file jointly, all of those debts have to be included and it will destroy both credit courts. bankruptcy is not always the worst option, it probably should be the last option. but it's a recognized -- i keep telling people this, it is a recognized method for getting out of debt to help you to get out of debt. >> i get why -- i would love for you to not file for bankruptcy,

this isn't a case where there are a ton of medical bills. you worked on the home, a lot of expenses and you could possibly repeat this scenario down the line. we don't want you to do that. let's look at your pay-down plan. if you can find the money, we're going to work on that, you can pay this down quickly. right now what you're paying, ten years and eight months and $50,000 in interest. if you can add and i know you have high new minimum payments, if you can manage those and find whether it's getting another job, cutting the budget, another $100 a month to the highest rate card, you could be out if four years nine months and pay less in interest, 20,000 less. plan b, 500 bucks, i know it sounds obscene. to give you the idea of a power of it all, three years, ten months. what do you think? for any plan to succeed, partially you have to commit to stop spending and stop using the cards. and being able to make the

minimum payments? what are you leaning towards? >> basically our cards are already gone, i don't have to worry about that. and with the one card raising -- i had three cards with this. and one raised it $500 and another one raised it another $400, we're going to have problems meeting those. >> yeah, i mean that's the hard thing. >> john is this a situation, he doesn't want to settle with them. you have equity in your home. is this a debt management plan possibility instead? >> this is only a debt management plan if in fact roger can get out and his wife can get out of this debt within 60 months. and i love roger, spent time with him yesterday, he's a rock star. the problem is the math doesn't work out. i have to set this out here, i know bankruptcy say serious option they are considering. if there is any -- on jeanny, his wife, $23,000 of debt she's liable for, either her account or she's jointly liable for it.

roger has the lion's share of the debt that he's liable for. here's the deal, if there is any way we can knock out her debt, prior to any sort of bankruptcy, any sort of action that's going to take the credit down and get her and then file bankruptcy individually, rather than jointly, roger versus roger and genie, then she exits with fico scores near 800. >> moving forward if they need -- if you want to keep your home or rent, roger, what do you think? this would means wiping out the 23,000 your wife owes and you declaring bankruptcy which is not an easy thing to do and starting over? >> well, i talked to family. i think we could probably do that. and roger the value of doing that, one of you is going to go down with the ship. if it can be one of you versus both of you. it's the lesser of two evils.

the bankruptcy is going to be on the credit report for the next decade. if you have genie credit scores in the 800s you'll get a better blended rate. if she can afford to apply for things in her own, they'll underwrite looking at fico scores in the 800s. >> will you keep us poeflted? >> sure will. >> we have a facebook post from eleanor. i have ten credit cards with a total of $20,000 in available credit, i owe 10,000. i always pay on time and never go over the limit, what should i do to better my credit, should i close the accounts i don't use? john, we know, i'll take first part, don't close any accounts, keep them open just don't use them. spreading around the debt, we get this a lot. does it make more sense for her

to spread it around all different cards? >> no, you still have the same amount of debt, if you owed 10,000 before, you still owe 10,000. second, now you have ten credit cards with a balance, don't fall for it. >> people are confused, when it comes to the debt unitization, it's the overall percentage. >> thank you, eleanor. if you have questions for managing those cards, call me at or e-mail at carmen@cnbc.com. you heard this week about the biggest debit credit card hack in history, 130 million numbers. how should you protect yourself? we have answers. much more right after this. next, her business did well for decades until the recession. >> i really like to see the flower shop continue. i just don't know if it's feasible. >> see how we help her move

forward. and later, reward cards. >> most of them are not good deals for consumers any more. >> what you can do about diminishing returns. hi, may i help you? we're shopping for car insurance, and our friends said we should start here. good friends -- we compare our progressive direct rates, apples to apples, against other top companies, to help you get the best price. how do you do that? with a touch of this button. can i try that? [ chuckles ] wow! good luck getting your remote back.

it's all right -- i love this channel. shopping less and saving more. now, that's progressive. call or click today. with cialis for daily use... a clinically proven, low-dose tablet for erectile dysfunction you take every day so you can be ready anytime the moment is right. tell your doctor about your medical condition and all medications and ask if you're healthy enough for sexual activity. don't take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. don't drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision stop taking cialis and call your doctor right away. (announcer) 36-hour cialis. or cialis for daily use.

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this economy has made business owners prisoners to debt. when do you call it quits? diane is tonight's money emergency. >> i opened my flower shop october 1st, 1978. 1984 i divorced my husband and so now i was a single mother raising my daughter on our own. and the flower shop was able to support us for many years and support us well. i love the business. it's fun. every day is a new adventure. in the last few years i've seen the sales decrease, i'd say

approximately 8% over the board. so to alleviate the financial burden on the business i'm trying to watch the bottom line. i've taken out quite a bit of debt personally to keep the business running. because the business is 30 years old. it's almost like my first child. it's hard to let go of the dream. at this point, my question is, is it viable to keep the business going, you know, what should i change to improve the bottom line? i really would like to see the flower shop continue. i just don't know if it's feasible. >> diane joins us right now. welcome. >> caller: hi, carmen. how are you? >> good. beautiful flower shop. you've been through so much and this is after 30 years of

running this business but you've racked up $150,000 in credit card debt. how are you managing month to month to make all these payments? >> well, the business does make money and it does manage to pay most of the expenses. but over the past four years i've found that i've had to use the credit card approximately 3 to $5,000 seven times a year to make the ends meet. >> that's a lot. you're juggling the cards. you lost someone very dear to you recently. how has that affected you personally, devastating i'm sure but professionally also affecting you professionally? >> for sure. i mean, i've finally met my soul mate about a year and a half ago. and we were together that time and he passed away in april. it made things very difficult. it's been a really tough year. >> diane, i'm so sorry for your

loss. i hear you have a very positive attitude about this. you're thinking this through very well, this is a money emergency. we've set up a triage team for you. here to help is john of credit.com and ray lucia, we've got to talk about the spending and where the money is going. diane, i know you paid for your daughter's wedding and she's your girl. but and you have her student loans you're helping support her. this can get very sticky. ray, you counselled many small business owners. diane's alone. now she's way behind in terms of saving for retirement. tell us where she can catch up. >> i know you're passionate about this, when i was growing up i was passionate about being a mu igs and singers and it was fun and it was great and i loved it. and i would have loved to have made a living, paul mccartney and all that stuff, but i couldn't make ends meet. there's a lot of things to do

within your business by selling it, still keep that passion. i still gig every once in a while, if you can believe that. but the thing that you need to do right now in your early to mid 50s, you don't have a whole lot of time left to save for retirement. with your skills, you've been running a business for 30 years, you could get a job within the flower industry. keep the passion alive and get 50,000 or $60,000 per year then, you can take on your own responsibility for your own retirement by using the 401(k) plan, you can put $22,000 a year away. i did the math for you, so you know. if you actually took -- i think you've got 12 or 13,000 stashed away. if you took the $13,000 and you did that for the next 15 years and added 22,000 bucks per year and if you can earn 6.5% on your money, you would have about $600,000 15 years from now and

no longer would you feel depressed and demoralized about not making enough income. you'll still leave your daughter a bunch of money. >> diane, it's really hard after 30-something years to go from working for yourself and being your own boss to working for somebody else. at $22,000 a year in putting away, that means she would have to have $1800 a month disposal income. diane, do you think if you were to leave the business you could get a full-time job? >> well, i do thing i could get a full-time job. >> well paying full-time job? >> well, right now i'm not really sure that that's feasible. ideally i would love to get the business back on its feet, clear the credit card debt and push reset and start again -- >> what about chapter 11, all personal credit cards, that's

probably problematic. chapter 11 is a business bankruptcy. >> absolutely correct. that is the ultimate last resort option. if you want to stay in the business, by the way, there's nothing like embarrassing or wrong about this. you have retail companies going chapter 11 and 7 all the time to get rid of their debts because they built them up and couldn't build their business. diane, let me ask you this, if you were free of this credit card debt, do you believe that in the next year or two, you could recover in this business without having to borrow 30 to $40,000 a year to keep it afloat? if you have to worry to keep it afloat you ought to make it a hobby and not your lively hood. >> that's the real question in the economy today. i started marketing the shop, increasing our website presence, going out there and pounding the pavement, looking for new

accounts. >> one of my concerns here though, diane, you've got the internet florist and 1-800 florists and all of that stuff. and by the way it's cheaper now to buy a box of chocolate than a dozen of roses, i'm concerned the discretionary spending is not likely to improve any time soon. if 5 or 10 years from now the business could be great and you can't survive the next two or three years, i thing it could be problems. >> the bottom line here, you do have a couple of options, it sounds like if you're going to be under, going to be negative for next couple of years, because also too you don't have a ton of time to retirement, the clock is ticking too loudly for you to keep the business. the bottom line, there's a couple of ways to get out of the business, one would be bankruptcy, give you a clean slate, sell the business but folding the business will allow you to take a full-time job to get income in. i know you're helping support your daughter, i would love for

you to stop doing that and pay attention to you right now and have her help you get through this really tough time. >> diane, you've worked way too hard and suffered way too much to have this burden on you. by the way, with respect to helping your daughter, it is time for your daughter to take responsibility to help herself so that she is not going to have to be the one helping you later on when it comes time to retire when you have no money and living on what little social security would provide. >> diane, one more quick note from john, she could go off and be her own consultant, doesn't need a storefront. >> exactly right. here's another idea to throw at you for your consideration, if you do choose to sell the business, see if you can work with the new owner and write yourself an employment agreement with them to stay in the company, still be in the business and won't be reliable for the debts any longer. >> we have a lot of options, what do you think? >> i am so overwhelmed right now.

i really don't know what to think, you know. it's been a horrible year. i've been given options by so many different people, yourself included. >> diane, we'll keep up with you and john, ray, myself, we're keeping up with you and going to help you through this. all right? >> i appreciate it carmen, thanks john and ray. >> thank you ray and john. if you have a money emergency and need help, please call or e-mail me at carmen@cnbc.com. much more right after this. next on dollar dilemmas. i never thought i would say this ever, you have an awesome arm, i'm talking about mortgages, really. and later. an upside to the down market, what you need to know if you're a first time home buyer. knowing your credit score and managing it well has never

been more important. your edit scores reflect your credit history and help employers and creditors predict how much of a risk you are. clean up air ors on your report by contacting both the lender and credit reporting agency. you're entitled to put your report for free once a year at annualcreditreport.com.

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are you fighting a credit bureau to fix a mistake on your credit report. call me or e-mail me at carmen@cnbc.com and you can be on the show. >> sometimes when it comes to your money, all you need is a quick answer. and i've got them for you. it's time for tonight's dollar dilemmas, tim, what's your dollar d? >> caller: i have an adjustable rate mortgage and my dilemma is whether i should get out of it or not. it is adjustable so right now my interest rate is 0.25%. >> i think i'm a little jealous, however, you do have a lot of equity, right? >> caller: i've got a bit yes. >> 200,000 grand equity, you're

set in terms of refinancing. you've got the first time i've said this, you have an awesome a.r.m. because it's ten years out, however there is danger in the fact that is adjustable. there always is. last october it was over 3% and you say that's still cheap, 2006, it's around 5%. but it was as high as 8% in 1990. now that's a lot of fluctuation in what you'll have to pay on that mortgage. if you say this is it, where we want to be for next ten years, definitely get and lock in something lower. if you think you're going to move in the next five years or so, then it doesn't necessarily make sense. it costs to refinance too. i'm always a fan of the fixed rate, always. >> caller: all right. >> thank you. luz in virginia. what's your dollar d?

>> caller: i have a single mother and i live in the teacher salary but i have been -- trying to save money for my kids. one is 8 and the other is 11. i have a big account with big money but i don't know what to do with the money. it is dying in that account. what would be the best place, right way to go with the money? >> luz, it's in a savings account, is it earning any interest at all. >> caller: it's in a savings account but the interest is very low. >> you need to do, this is for college, right, college funds? >> caller: yeah, i would like to do something like that. i was searching but i was kind of afraid to put the money in the wrong place. >> here's where you need to go. if this money is for college, even room and board and books, that sort of thing, you need a 529 these are education savings

accounts that allow you to grow your money and invest it tax-free for college. you can put this money in other investing instruments, there are 529s, hundreds of them. go to savingforcollege.com and shop for a 529 that meets your needs and lots of options for investing. you have an 8-year-old and 11-year-old. the danger here is the closer they are to school, if it's within five years, right, you don't want to have all your money in the stock market. you need to get more conservative put it in cash. even if it's a lot in cash or bonds, what you're earning on the interest, you won't pay taxes on because it's going to college. >> roger, was your dollar d? >> caller: i watch your show frequently and i enjoy the practical advice that we rarely get from other experts.

>> thank you. >> caller: my question is two parts. how do i know if a cd from a brokerage bank is fdic insured? the second part is, when an account is fdic insured, exactly what is insured? is the principal only or the principal and interest as if it matured? >> excellent question. here's the thing. go to fdic.gov. this is where you'll check, enter the name of your brokerage. not all financial institutions or brokerages especially have fdic insurance. financial institutions do. brokerages, you have to check. now, if you have cds, up until the individual max of 250,000 are covered on the interest earned up to failure. not maturity. the interest that you've already

earned. let's say you have a 5-year cd and the bank goes under and you're guaranteed up to that point, the three-year what you've earned. not to the five. that's still pretty good news. go in there and check. thank you so much. >> caller: thank you. >> if you have a dollar d that needs an answer, ask me through facebook. otm.cnbc.com. they may seem like a good deal. how far will the air mileage reward cards take you. one of you takes me to task on brokers. >> equal commission, equals conflict of interest. i set things straight. looking for motorcycle insurance. you're good. thanks. so is our bike insurance. all the coverage you need at a great price. hold on, cowboy. cool. i'm not done -- for less than a dollar a month, you also get 24/7 roadside assistance. right on. yeah, vroom-vroom! sounds like you ran a 500. more like a 900 v-twin.

excuse me. well, you're excused. the right insurance for your ride. now, that's progressive. call or click today. but i've still got room for the internet. with my new netbook from at&t. with its built-in 3g network, it's fast and small, so it goes places other laptops can't. i'm bill kurtis, and wherever i go, i've got plenty of room for the internet. and the nation's fastest 3g network. gun it, mick. (announcer) sign up today and get a netbook for $199.99 after mail-in rebate.

do you need help getting out of debt? call me at 877-753-cnbc or e-mail me at carmen@cnbc.com and you can be on the show. >> our plastic may be free in any perks these days with the higher interest rates and fees, what about the perks of rewards? many are finding out the hard way that added values aren't all they are cracked up to me. here is bob sullivan of m smtnbc.com anda author. bob, we used to have a very

rewarding relationship with the credit cards but these days it is not just the interest rates changing but the rewards too. >> it used to be every day people would get all of these offers in the mail, full of all sorts of wonderful things, charge a few things get free plane tickets. those days are gone. the requirements for buying tickets, the points and miles numbers are up, the opportunities are down and there really most of them are not good deals for consumers any more. >> there's funky math to be done, conversion values, this is very interesting. they've gotten slimmer. talk to us about what that is and what's happening. >> a typical offer you might see from credit card companies, you might have to accumulate up to 60,000 points in order to get yourself a $351 plane ticket. for most people, that's going to be $60,000 worth of spending just to get yourself one flight across the country. right now you've got to watch the terms and conditions because the points are not worth what

they used to be. >> when the value of one point goes below one penny, one equals 100, change the card. some folks are paying too much for the rewards rather than using them as an add benefit. they are actually chasing rewards around costing them more in the end. >> how many friends have you been with, i'll charge dinner because i want the point. people do all sorts of crazy things to accumulate the numbers. when they have the mileage cards they often ends up paying annual fees and almost always have higher interest rates and crazy terms and conditions, american express announced last week, if you are late in the month you pay your bill, you're going to lose all of points you accumulated that month. you can get them back if you pay a $29 fee. i think people put up with things they shouldn't put up with. >> i like the ran some.

i have been racking up thousands of rewards points to take an australian trip. you have me scared this might be in vain. >> i don't mean to dash her dreams, i do think it's been a long time consumer behavior that people bank the miles with the idea in several years maybe they'll go on the trip of their dreams. inflation and miles work the wrong way. in most cases they are not worth -- three years from now they won't be worth near what they are worth today. take that trip today in the next couple of months or better yet, if there's another trip you want to take, a lot of programs will give you points towards other tells items. i bought an ipod this year. >> i use my points for things i want to buy. eric sent this question, i've experienced a few problems cashing in the miles.

as far as reward cards go, do you prefer cards that provide points or cash back or miles? i think everybody knows where we lean. you have a good example of why cash is king. >> here's why. i looked up the other day, roundtrip from new york to seattle, $400, that would cost you 60,000 points, equally of 60,000 spending dollars. if you had a 1% cash back card, you could get back $600 and have yourself a nice dinner with the other 200 bucks. >> thank you so much. the bottom line here, don't get a card solely because of the rewards, not worth paying more for in interest or fees. if you've got a question about your rewards card, shoot me a note. up next, are you ready to take the plunge and become a first-time home buyer, don't do anything until you see this. (announcer) take your time to find the right time

with cialis for daily use... a clinically proven, low-dose tablet for erectile dysfunction you take every day so you can be ready anytime the moment is right. tell your doctor about your medical condition and all medications and ask if you're healthy enough for sexual activity. don't take cialis if you take nitrates for chest pain,

as this may cause an unsafe drop in blood pressure. don't drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision stop taking cialis and call your doctor right away. (announcer) 36-hour cialis. or cialis for daily use. ask your doctor about cialis today, so when the moment is right, you can be ready. seems like an amazing time to take the dive and buy your first home. what about you and your money? chris in florida, you think you might be ready to sign on to be a homeowner. talk to me about it. >> caller: my wife and i have been thinking of buying a home for the last three years.s.

we saved about $20,000 for a down payment and we're done wondering and concerned about the economy and other things, if they'll still have the tax rebate next year or not. >> here's the thing, it may or may not be there. it has to be right for you. you, chris are alike thousands of people looking to take the plunge and buying their first home. here to shed light on the real estate side is amy of zil low.com. you have a survey that has interesting numbers about first-time home buyers. >> we talked to people who say they are going to buy in the next year or two. nearly a third of all of today's home buyers are first-time home buyers. this is a larger number than you would typically find in a normal market. people are incentivized by lower prices and lower mortgage rates and things like the $8,000 tax

credit. >> you have a couple of tips. first up you say, you have to be ready to hold on for a while. >> home values have fallen substantially, still going to fall into 2010 in many places, including flor daxt we don't expect a bottom until 2010 and even then prices may languabe a bottom. can i live in the home for the next seven years, will it fit our growing family? you want to live there seven years and it can be a good decision with the incentives. >> that is longer than we used to say five. now, the housing market is tight, really tightly with the ability to get the mortgage in first place, for first timers, make sure you start in the right place, which is the loan. >> it is very important to get preapproved for a loan before you go shopping for a home. this way you know how much you can afford. lending standards have tightened. harder to get a mortgage.

this can help you at the bargaining table when you're sitting down with a seller because they know you are a serious buyer coming to the table pre-approved. >> for someone like chris calling, buyers are in the driver's seat. when it comes to throwing in a price, you say he can go lower? >> i just looked at data for south florida and we found that the sale price is 9% below the list price for listings in south florida. buyers are bargaining, getting 9% below what sellers are even asking today. as i buyer you are in the driver's seat. you can negotiate at the table. the other thing is you have time today because of this buyer's market, you can think about it and negotiate and make decisions on information, not emotion which is important when you're making what's going to be the biggest financial decision of your lifetime. >> here's the thing. you see that $8,000 tax credit and say i want to take advantage. this is a huge financial

commitment. many times over than the $8,000. it's got to be right for you. you have this amount of money to put down, are you stable with your job and income do you think? >> it's a little iffy right now. we're not sure if this is the best time or not. >> you want to make sure that you've got a stable income, as much as you can possibly project out and you're going to stay put for a long time. do you think that's a possibility? >> it's iffy, like everything else. >> i don't think you have enough of an emergency fund here too. banks will want to see quite a few months of mortgage payments in the bank. you have less than 20% down, if you do that, you want to head to a fha loan, the only place to go for that information is hud.gov, that's where you want to go for

information. we taxed out a lot of information, it's a commitment. >> i'm thinking i should hold on and wait and see what's going on before we jump in and take i dive. >> definitely because the word is amy, there may still be another dip in home values up ahead. this remains a buyer's market. thanks amy for joining us. thank you chris, good luck. our spotlight question of the week, a viewer asked me, hey carmen, why are you mad at brokers? these days, wouldn't it be great if saving money happened as automatically as everything else? at bank of america, it practically does. use the bankamericard power rewards visa credit card and earn rewards like cash back with every purchase. cash you can put into savings.

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you know i love hearing from you and every once in a while i like to shine the spotlight on one of your questions, i got more of a comment from louis, why do you bash brokers by telling people to save the fee and commission they charge? the whole point about going to see a broker is most people don't have a clue what to do and need help. brokers provide a valuable service for a commission or fee. most people need help, no different than anyone going to see a doctor for medical advice or help. brokers are needed. listen louis, this is not about getting something for free. it's about getting even better advice for less. here's the thing, as you mentioned.

brokers equal commission equals conflict of interest. here's the thing, if you like your broker, fine. i would hate to find out my doctor is prescribing me something because he gets a kickback. you want to stay away from that. go to where someone can look at all your investments and not have any financial reason for pushing anything on you. go find a cfp that's fee only or fee-based. and someone who is very holistic and doesn't just manage one investment account. thank you, louis. you have a beef with me or question in need of a money answer, i want to help, call or e-mail at carmen@cnbc.com. will suze grant permission to the viewer who wants to buy a baby grand piano? back here at otm next week, we're answering a question i hear from a lot of you, where should i put my money? call or e-mail me at carmen at

cnbc and watch tonight's web extra. $130 million debit and credit numbers stolen, how to protect yourself from credit card/debit card hackers. if you missed a segment, you can download full episodes at itunes. i want to see you next time "on the money." pantene full & thick just got the good housekeeping seal. it leaves hair full, starting at the roots, and that's gonna last all day. [ stacy ] full, thick-looking results the leading salon brand can't beat. full & thick from pantene.

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♪ to my family [ female announcer ] clean you can see. softness you can feel. tide with a touch of downy. coming up, do you have debt and different kinds of debt? do you not know which one to pay off first? my debt loyalty list is coming up right now. also, i'm trying to help him out and figure out what's best. >> no. no. to help him you help yourself. >> and you ask me, can i afford it? >> i'm interested in getting rin no plast it and i wanted to do that since i was a teenager. >> it is a schnoz, yes. >> hi, everybody, i'm suze orman and you're watching quts the

suze or man show. let's talk about loyalty and my own for you personal debt loyalty list. what am i talking about here? many of you have a lot of debt. and you have debt in certain areas and you come up to me and you'll say to me, suze, should i paw this debt before that debt, that debt before this debt? which debt should i pay if i only have a little bit of money to go around? well, here is the loyalty list as to how i think you should be paying debt when money is kind of scarce. take a listen. most of you have six kinds of debt. and if i were to put them in order of the most important to the least important, they would go like this. irs debt, student loan debt, personal debt, mortgage debt, car loan debt, and credit card debt. now, let me