by Kathy Stemke

Created on: June 05, 2008   Last Updated: June 21, 2008

Do you need cash to pay bills today? Don't panic! It's important to have a plan. Americans have too many possessions. Go through your house and gather the things you can live without. Do some research to find their values and sell them in the right market. A booth in a flea market for a weekend is inexpensive and can help you get a decent price for your objects. If you have something rare or valuable, an on-line auction will help you get what it's worth. Craig's list is good for selling used funiture, and garage sales are great for selling inexpensive items.

If you still need to raise more cash, there are several things to avoid. Don't get snagged by these five common mistakes.

PAWN SHOPS are one of the worst places to sell your goods, because you only get the minimum amount of cash. (jewelry 40%, electronics 20%) Interest rates run from 120%-300%, and some states allow charges for storage, insurance and service.

UNSECURED LOANS-Signature loans and credit cards, with no collateral have very high rates, and charge a $30 fee each time you go over your limit. Two-cycle billing and and retro active rate hikes will increase your debt quickly. Universal default will increase all your cards when your late on one. Companies charge a late fee if your payment does not arrive BEFORE
THEIR MAIL on the due date.

TOO MANY CREDIT CARDS-Many people open too many credit lines, which puts them in jeapody of getting in over their heads, and makes it harder to keep track of due dates. Too many cards lowers your FICO score. (average age of cards decreases)

PREDATORY LENDERS-Just like the great predators of the jungle, some finance companies use deceptive ways to get your business. Check out finance companies with consumer groups.(800 569-4287) The following are a list practices that these predators use to get your money.

1. High interest rates and fees
2. Bait and switch tactics or broken promises
3. Prepayment penalties
4. Change the rates anytime
5. Flip or sell your loan to another company
6. Bad reports with the Better Business Bureau

There are some reputable companies who can refinance your home. Compare lenders and ask family and friends for recommendations. Make sure you get a good appraisal on your home, and you can make the monthly payments. You have three days to cancel the loan in writing without penalty. If you feel victimized, and have passed the cancellation date, your local bar association may be able to help you.

Car title loans are short-term solution (usually 30 days) with

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