Myths 5 & 6

Continuing the 10 financial myths from USA Today, Myth 5: If you file for personal bankruptcy, you'll lose your home.

In most cases you can keep your house, especially if there's little equity in it. The rules differ from state to state. Chapter 7 erases most debts but requires you to pay overdue mortgage bills upon filing. Chapter 13 usually entails a debt repayment plan that allows you to pay past due mortgage bills over time.

Myth 6: Buying a house is always better than renting.

It makes sense to rent if your budget won't accommodate extra house costs such as property insurance and taxes. The plumbing issues will cost you and not a landlord. Also, it doesn't make sense to purchase a house if you plan to live there less than five years. There are large costs associated with getting into a house and with selling a house.

There are calculators that may be helpful at: HSH.com and Bankrate.com. Good luck. Even though it seems to be a buyer's market, lenders are making it more difficult to qualify. You'll need a higher credit score and larger down payment.

'til later