The national debt limit has been raised four times during the last five years. The increased debt ceiling is now at an incredible $9 trillion, with the current national debt just under $8.7 trillion.

Like many cash-strapped Americans who have terrible credit and who max out their credit cards, the federal government has hit its limit for borrowing funds to keep operating. If the limit isn't [continuously] raised, the government will eventually run out of borrowing authority, risking a national economic shutdown in a worst case scenario.

But is this problem being addressed? Well, when President George W. Bush initially took office, the national debt was at $5.6 trillion. Since then, big budget surpluses have collapsed into huge deficits, and the debt has shot up nearly fifty percent. While this may not be entirely due to his actions, there appears to be no end in sight to government spending. While the government encourages Americans to save, they continue to print and spend more and more money.

One of the critical question that you must ask yourself when you retire is whether to take a lump sum or annuity plan for your pension. Annuities are financial instruments that make payments to you on a regular basis for the rest of your life, while a lump sum is simply one full payment made now. Whether its the lottery or retirement income, most people choose the lump sum because they believe it offers them the best deal, but this may not be the case!

The biggest factor to take into consideration is your lifespan. Annuities die along with you and your spouse and leave nothing for your heirs, while lump sum payments rolled into an IRA or other retirement vehicle lets your heirs keep the money after you die. Consequently, the general rule is: the longer you live the more valuable an annuity is and visa-versa. Statistics show that a 65-year-old man has a roughly 50-50 chance of living to age 85 and a 25 percent chance of living to 91, while a 65-year-old woman has a 50 percent chance of living to age 88 and a 25% chance of making it to 93.

When evaluating these options, it is important to calculate your retirement needs after social security income and any other income. If you rely on your pension for the majority of your retirement income, then a lump sum may be the best option, as it gives you much needed money upfront. However, if this just accounts for a small portion of your income, the chances are it will pay off to take the annuity over the lump sum as it will typically amount to more in the long run. Finally, another common alternative is to take the lump sum payment and purchase a separate annuity with a higher yield, which gives you the best of both worlds. Combined, these are all very important factors to consider when making decision on your pension payout.

If you are expecting a sizeable income tax refund, you'd think you'd want to file your return as soon as possible to collect the money that the government withheld from you all year, right? On-line filing has made it even quicker and easier for you to receive your refund.

However, avoid being rushed to file too early for the tax season. Due to a lot of changes in the tax laws, banks, brokers, and mutual funds sometimes cannot provide accurate information to you by their end of January deadline. A number of financial institutions will likely be forced to send you revised 1099 forms in February, March, or even as late as April.

It doesn't hurt if you decide to delay filing until March because the initial 1099 form you receive may not be accurate. If you file too early and then get a revised 1099, you may need to file an amended tax return to claim an additional refund or to pay tax that you subsequently owe. In short, take your time filing your taxes this season - it'll only help you in the end.

According to a survey conducted by the U.S. Department of Justice, identity theft affects about three percent of all households in the U.S., totaling an estimated 3.6 million families in the U.S each year. To put that in terms of money, identity theft costs an estimated $6.4 billion per year.

Identity theft occurs when someone uses your personal information such as your name, Social Security number, credit card number or other identifying information, without your permission to commit fraud or other crimes. Consumers whose identities have been stolen can spend months and years clearing up their good name and credit, not to mention the expenses that may be involved.

To protect yourself from identity theft, you should protect your social security number, your credit/debit cards, and your financial documents:

Social Security Number: Remove your SS number from your driver’s license and insurance cards, just as you should not put your social security number on your checks nor carry a copy in your wallet. If you have to provide your number for anything, offer only the last four digits and request that your number be taken off any loan applications.

Credit Cards/Debit Cards: Carry your credit/debit cards separately from your wallet. It is a good idea to keep a secured copy of all account numbers (and pin numbers), but never carry them with you. As well, sign all new cards you receive. Never leave your credit cards unattended and be alert for "peering eyes" when making purchases; do not leave ATM receipts behind and protect all accounts with a password. Check your account activity regularly and monitor it for accuracy and any discrepancies.

Financial Documents: Shred all of your personal information whenever possible and do not carry extra cards or identifying documents with you.

Credit-card issuers relentlessly tempt you with new offers, even as they keep changing the terms of the cards you carry. However, you know you don't need five credit cards, all with different "rewards." While it's always good to have a backup for an emergency, sticking to one card will minimize the number of bills you pay and maximize your card rewards.

Invest in a credit card with low rates that will last. You'll find it easier to chip away at a balance if your interest rate is well below today's 14.1% average. A 0%-balance-transfer teaser is tempting, but you can owe fees as high as 4% of the balance. And if you can't pay it off within six or twelve months, you'll be left with the hassle of chasing the next offer. Skip the promotions and opt for a low ongoing rate.

If you pay off your balance in full and are good about not having balances with your card(s), then you should look for a card with rewards. However, make sure you utilize your spending power to the fullest. If you earn miles when you rarely fly or if you split between two or three cards, you will not get the most out of your rewards and cards.

Maybe you're not the savvy-investor type, but you have an interest in investing for some extra cash. It's easy and care-free; you can manage your own portfolio with ease by following these two steps:

Pick a mix: You'll need to figure out how you will divvy up your money between stocks and bonds, after deciding how much money you have, or want, to work with. You can use online tools to fine-tune a mix for your age and appetite for risk. However, there is an easy rule of thumb if you'd like to stick to the simplest decisions: to decide how much you should devote to stocks is to subtract your age from 120. So if you're 40, put 80% of your long-term savings in stocks and 20% in bonds. If nothing else, this simple formula ensures that you'll own an ample amount of stock when you're young and can take more risks. Every year, subtract your age from 120 again and adjust the mix as needed.

Buy index funds: For an investment that doesn't require constant care, the clear choice is an index fund. With a single fund, you can own virtually the entire stock or bond market. No index fund will ever top the charts, but history suggests that over the long run they'll earn a better than average return. You can build a perfectly adequate portfolio with just two funds: a total stock market index fund and a total bond market index fund.

Credit cards are becoming ever so popular in today's society. Even kids have their own credit cards, or at least access to their parents'. Credit cards are a growing trend among a growing industry.

The reason so many credit cards are available to anyone and everyone nowadays is for the primary reason that they are an asset to your bank. Credit cards are sold to you via a banker, who then sells your debt of the credit card to a Wall Street firm. From there, Wall Street makes big money off of your purchases by issuing you high monthly interest rates. As for your initial banker, they are left looking for more customers just like a fisherman looking for fish. This is also the reason there are so many fish (or people who use numerous credit cards) in the world.

The power of the US dollar has been long depreciating over the last few decades. This is a prime example of the dillema that we encounter everyday as we work hard for our money that doesn't seem to be working hard for us. In simple terms, if you earned $50,000 in 1996, you would have to earn $100,000 right now just to stay even. However, many people aren't earning more even though prices are rising, so they make up the difference by using their credit cards for everyday purchases.

People are taking on the tasks of taking on extra work (or a second job) to earn more money. And when they earn more money, they move into higher tax brackets. Today, the alternative minimum tax (AMT) -- first levied in 1970 as a tax against the rich -- is penalizing the middle class. In many ways, the AMT is a form of double taxation. Many working people are now making more money but taking home less because they pay a higher percentage of taxes. Credit cards are a simple solution to quick money when we need, or want, it most. However, they are also a quick jump to greater debt and/or financial troubles.

We've all seen them - ads from tax preparation services about "instant refunds." This year, we are seeing the new "pay stub loan" being introduced to us, which offers more convenience than ever before, but at an incredibly high price.

These tax programs thrive because of those who are in such a hurry to get their money. To get our money even faster, many of us will once again turn to the promise of quick money solutions - in the form of short term loans at ungodly rates. The worst part is that if your preparer at Jackson Hewitt or H&R Block overestimates your refund, you end up even deeper in debt to them. The money lost on high fees and interest negates much, if not all, of the benefit of these quick cash loans.

However, we must not overlook other, much more efficient and less expensive, options that are available. The IRS website has a section of free filing alternatives which prove to be good options for many of us which will allow filers to have their money within a couple weeks. The Campaign for Working Families also offers some great solution for qualified taxpayers.

If you don't absolutely need instant money, don't go for the instant debt that comes with the instant refund.

Easy access to credit cards is a large reason for such a large increase for personal debt in the United States. Card issuers relish the chance to reel in those who'll continuously charge beyond their means at eighteen or twenty percent, and steer clear of people who they know will be able to pay their balance on time. Debt is a growing issue, and a complex one at that. Not all of debt is bad, however. When used intelligently, debt can be of tremendous assistance in building wealth.

One of the secrets, therefore, to being smart with your money is to differentiate between good debt and bad debt. While the differences often seem logical, it is a logic that apparently is missed by many Americans. "When you buy something that goes down in value immediately, that's bad debt," says David Bach, CEO of Finish Rich Inc. "If it has no potential to increase in value, that's bad debt."

Good debt is investment debt that creates value. Such investment debts can be found in student loans, real estate loans, home mortgages and business loans. Taking on debts that are tax-deductible and debts that produce more wealth in the long run are also valuable debts to consider.

Bad debt comes into play with the purchase of disposable items or durable goods when using high-interest credit cards and not paying the balance in full. Most people do not pay off the balance in whole before the due date, and this is where they find themselves in trouble. You are charged interest every month that you make a partial payment on your credit account. The disposable or durable item, purchased with credit cards, store credit cards, or through loans such as auto loans, continues to lose value, and the amount you paid for it continues to increase.

With such an incredible problem with prices in the realty department, how does one know what to do, or where to go? As housing values are depreciating and it's getting harder and harder to sell houses, it is now suggested that condominiums may be the best option.

Condos offer flexibility in your living, short or long-term, along with ease of caring for the property and having to worry about rebuilding, remodeling, etc. As a condo owner or renter, it is a much more fluent act in the recent realty hits to have access to a condo. Whether you may consider buying a condo for a second home or to take part in a small realty hobby for a great investment, or if you are a student or single renter renting a condo, it only makes the most sense. Condo sellers react to market changes and act quicker than owners of single family homes, who tend to hang onto property in the face of lower prices.

Single-family house owners act like buy-and-hold value stock investors, riding out market peaks and valleys. They sell when they go through a life change such as raising a family, retiring, or moving for a new job. Condo owners act more like growth stock investors, who bet on the hottest companies and trade in and out of stocks much more often, reacting to what they perceive is happening in the market.

In looking back over the historical data of when the national housing market peaked, July 2005 topped the charts. It was the first month in four years that condo price appreciation was less than that of existing single-family houses. Condos are the more simple, more convenient, and more economically smart and fluid option in which to take a look at in the US housing market.

There are several new savings opportunities this tax season, as well as some traps to watch out for. Here's a list of five things to look out for:

1. Lawmakers brought back the option to deduct your state and local sales taxes instead of your state and local income taxes. This allows you to estimate your sales taxes, which is based on your exemptions and income. But if you bought a car, boat or motorcycle in 2006, you should find that receipt because you can add the sales taxes you paid on it to the IRS number!

2. This year it'll be tougher to take a charitable deduction for old junk you gave away after Aug. 17, 2006. New rules say that clothing and household goods must be in "good used condition or better" to qualify. Make sure you keep a list of your donations, and it is also a good idea to have a photo on hand of your donated items for a better record.

3. If you paid someone to watch your children, under the age of thirteen, so that you could work or study, you may be able to take the child-and dependent-care credit. It's worth as much as $1,050 for one child or $2,100 for two (based on your income). Day camps also can be accounted for - you just need the address and tax identification number of the day-care provider or camp.

4. If you made your home more energy-efficient in 2006 (by adding insulation, replacing drafty windows, or buying a furnace, for example), then you may qualify for a new tax credit worth as much as $500 (or $200 for windows). If you bought a new hybrid car, you're entitled to a credit of $250 to $2,600, depending on the model and the sale date. To read more about which improvements qualify, go to http://www.ase.org/taxcredits.

5. Congress extended the tuition deduction, which lets you write off as much as $4,000, a $1,120 savings in the twenty-eight percent bracket. The top adjusted gross income to qualify is $160,000 for married couples. However, you will need to present the 2006 tuition bills.

Credit cards give you a lot of purchasing power, but they do not give you free money. Here are a few myths about credit cards:

Myth #1: The more cards you have, the more affluent you must be.
Truth: A wallet full of credit cards means you may be on your way to serious debt, and not rich or impressive with your money as you'd like people to think as you pull out fifteen credit cards to pay.

Myth #2: You should have as many cards as possible in case of emergencies.
Truth: Having too many credit cards is liable to create the "credit emergency" of too much debt. Be credit smart by limiting yourself to only one or two credit cards, in which you should also keep low balances. You should have plenty of credit available for unexpected events; if you do need additional assistance, you can always request an increase in your credit limit.

Myth #3: More credit cards equal a better credit rating.
Truth: Too many credit cards create the potential for overspending and can actually lower your credit rating. You only need one credit card (paid as agreed) to establish good credit.

When it comes to credit, "less is more." Use your credit card(s) on an as-needed basis only. Do not just spend because you can.