It is amazing to me the amount of confusion that abounds among homeowners as of late. Should I refinance or wait? Did my home go down in value? Should I pay off credit cards? Will I have a job tomorrow? What steps will the government take (or not take) to help out homeowners? With all of the talk in the media of this new program and that new program, bailouts, sour markets and consumer confidence in the tank; it's no wonder everyone is suffering from a little "analysis paralysis". There is just too much info.

I understand this, but the only thing you can control is your action.

First, don't count on the government doing a whole lot to help. They may be well intentioned, but their programs usually aren't feasible and rarely work. FHA Secure and the Hope program were both supposed to help around 500,000 homeowners each, but both died quick deaths. The guidelines to qualify were difficult, if not impossible, to meet.

Should you refinance?

Well, if you plan on staying in your home for at least 5 years, you probably should at least take a look. Don't assume you know what your credit looks like or if you qualify. The mortgage market has changed dramatically even in the last 6 months. Call your loan officer and talk to him or her. After all the rates are below 5% for a 30 year fixed rate. It would be crazy not to take a look and won't cost you anything to have a qualified individual give you a mortgage analysis.

Create a cash reserve

Now is the time to be socking money away. If you do refinance with a lower payment; consider putting the money you would have sent to your lender in a savings account. Look for little ways to cut costs. Let's face it. A lot of people are losing jobs right now and money in the bank is, well......... money in the bank.

If you have a home equity line you may have noticed the minimum monthly payment going down. Take a look at what your payment was a year ago and continue "paying" that every month. Simply take your monthly equity line payment now, subtract it from what you were paying a year ago and put the difference in a savings account.

Pay down debt

Now is a great time to negotiate lower rates and maybe even close some of those extra cards. Did you know you can close a credit card and negotiate the rate down to less than 5%? I did it with a Bank of America card I had. Boy, does the balance go down fast when the interest rate is low! Know something else? The less you owe on credit cards in relation to your credit line; the better your credit score is! It shows the creditor you are responsible with credit, even if it is available to you.

Last, but not least, update your resume

Hey, nobody likes to talk about it, but the reality is that talented people with education and skills and experience are losing their jobs every day. That's not a dig on them. Companies simply have to cut costs to survive. Having that resume fresh and ready to go certainly helps you mentally to cope with both the possibility and the realty of it if it happens.

So make a plan! Take control! You'll feel so much better and you'll be better prepared to handle this downturn and be that much smarter and confident when it turns around.