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You're changing jobs and - whether you're celebrating a career advancement, or bemoaning a lay off - your paycheck is no longer dependable. Now, all the advertisements for easy credit, cash from home refinancing or short term loans, seem to speak directly to you. All this "advice" about how to juggle your finances can be conflicting, which only raises more questions. However, when you sort it out, basically there are two main strategies:

1) Use your available cash to pay off debt so can reduce your monthly payments, or

2) Increase your cash on hand, even by using credit, so you won't be caught short for your basic needs.

So which is the right philosophy to embrace? Each of these approaches has it's usefulness, depending on your circumstances. The key to the problem lies in understanding the different types of cash needs you have, and the potential effects of not being able to meet them.

* First priority are your basic needs - housing, transportation, utilities and food. Under all circumstances pay your mortgage and automobile payments on time, even if this means using your dwindling cash. The bank can take away your home and automobile, so don't let these obligations fall to the wayside. If you must pay late, communicate your situation to the bank as soon as possible.

* Next, student loans and other such debts that can be collected via wage garnishments should be kept current. Interest rates on these loans are typically already low, so don't worry about paying them off early. However, don't put off your regular payments.

* Last on your list should be your credit cards. While your credit rating will be negatively affected if you pay late, you won't be deprived of your basic needs.

Now, over the next few months cash will be tight, so what do you do with what you have?

* Consolidate all your credit card debt on one low interest card. Be sure to select a card with a permanently low rate. In this way your monthly payment can be reduced without a large outlay of cash.

* What about using a chunk of available cash to pay down as much credit debt as possible - this is a good idea too isn't it? In the long run, yes, but maybe not right now. When your next pay check is uncertain, first make sure you'll be able to cover your high priority items (home and auto). Reducing your debt is less important.

* If you have equity in your home, do refinance to get a lower monthly payment (and look into rolling your credit debt into your loan); but don't use your cash to pay down your mortgage.

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