20 fiscal to-do's
By Bankrate.com

Lose weight. Check. Exercise three times a week. Check. Trash the cookies, and get started on a healthy diet. Check.

OK, while you're improving your physical condition, here's an idea: How about fixing up your financial condition, too? Follow these suggestions, and you can pump up your wallet while that pile of bills loses weight.

Don't scramble your nest egg: Think twice about using your home equity to pay off credit card debt. It's just not a good idea to tap home equity. Credit card companies can't foreclose on your house if you run into financial trouble, but home equity loans and cash-out refinancings are debts that are secured by your home. Do you want to risk losing it over the stuff you bought with your credit cards?

If you want to refinance your mortgage: Watch the mortgage rates on Bankrate.com and refinance when rates fall. Bankrate.com's Refinancing Calculator enables you to see how much you would save each month by refinancing, and how long it would take to recoup the costs of getting a new loan.

Pummel your PMI: Home buyers who make a down payment of less than 20 percent are usually stuck having to pay private mortgage insurance, or PMI. They can cancel PMI once the loan balance is less than 80 percent of the house's value. If you pay PMI, and you've been paying on time for a few years, you might be able to get rid of that extra amount added to your monthly mortgage payment. Read this Bankrate.com story for guidelines.

Keep your eye on the prize: According to polls commissioned by mortgage brokers, mortgage shoppers tend to look only for the lowest rate and scarcely pay attention to fees or other loan terms. Don't make that mistake. Sometimes you're better off paying a slightly higher interest rate, if the lender charges much lower closing costs. Shop all three parts of a loan -- rate, points and fees -- before choosing your lender.

Fix your FICO: If you plan to buy a house or refinance your mortgage, find out far in advance what your credit reports say. Don't be surprised if they contain errors that will lower your credit score, also called the FICO score (for Fair, Isaac & Co., the company that came up with the scoring formula). The sooner you order your credit reports, the more time you'll have to correct any mistakes.

Don't let inflation wipe out fixed-income returns -- check out Series I bonds: I bonds have a built-in hedge against inflation. They pay a fixed rate of interest plus an inflation premium. When inflation is low, I bonds are a bad bet. But if inflation starts to rise, keep an eye on I bonds. You could lock in a rate that's much better than a CD. For more on I bonds, click here.

Convert to a Roth IRA for a tax-free retirement: A Roth IRA is a great way to have your retirement nest egg grow tax-free. Unlike a traditional IRA, where annual contributions are often tax-deductible and contributions and gains are taxed when withdrawn, contributions to a Roth are taxed, but the earnings grow tax-free. You can convert a traditional IRA to a Roth and watch it grow tax-free. The hitch is you'll have to pay the taxes on the traditional IRA by April 15. The best time to do a Roth conversion is when stock and mutual funds prices are low. For more information on the Roth IRA, click here.

CD laddering can ease the pain of low interest rates: Laddering CDs is a simple way to maximize yields. By purchasing CDs of different maturities and rolling them over as they mature, you spread out the risk of buying when interest rates are low. Depending on the maturities you select, your CD portfolio can be set up so you're never more than, say, three months, six months or a year from a CD coming due. Here's an example of how to build a five-year ladder.

Guard your personal information -- OPT OUT: Financial institutions, insurance companies, even utilities and other companies that collect personal information about consumers have mailed a billion privacy notices to customers. The notices gave customers the ability to opt out of having their personal information shared or sold under some circumstances. The law that forced the mailings is less than perfect. Many of the notices were tough to understand and made it difficult to respond. Nevertheless, opting out is still your best bet to make sure fewer eyes see data, such as your Social Security number and your creditworthiness. If you want to opt out, download this form and send it to your bank, brokerage or insurance company.

Don't wait to build a stash of emergency cash: Putting money aside for emergencies isn't easy, but building a fund is critical to your financial health. Having spare cash can keep you from going deep into debt if you lose your job, if the roof needs to be replaced or worse. Here are some ideas for building an emergency fund as painlessly as possible.

Cut monthly banking fees: The number of free checking accounts is at an all-time high, according to the latest checking survey by Bankrate.com. Free means no monthly service charge or per-item fees regardless of balance. Get one for yourself and start saving today.

Pay no ATM fees: It's your money, so why spend it to get to it? Here's how to avoid ATM surcharges: switch to a bank with a larger ATM network; use only your bank's ATM; ask for cash back with debit purchases at the grocery store; withdraw larger amounts to minimize ATM usage; or visit the teller!

Join a credit union and let the savings begin: Credit unions offer great savings to their members. Beside personal service and reasonable fees, members find low rates on everything from credit cards to auto loans to mortgages. Joining one is easier than ever. You might be eligible and not even know. It's not just where you work that matters. Where you live, who you know and your personal interests also figure in. Here's how to find out if you qualify for membership.

Shop for cars while zero-percent deals last: Several major auto manufacturers are offering zero-percent loans. A zero-percent financing rate on an auto loan is quite a deal. But not everyone qualifies, don't overlook cash rebates. If a rebate is hefty enough, there's a chance you could save more money by snatching up the cash and financing your loan through a bank or credit union. Be sure to crunch the numbers, and don't let the zero percent offer dazzle you so much you forget to negotiate.

Be your own used-car salesman: You make the most cash on a used car sale when you sell the vehicle yourself. You could pocket an extra $1,000 to $2,000, depending on the type of car, its age and how well it has been maintained. So if you've got an extra car or truck, go ahead and sell it on your own. A private sale is also a good backup strategy for a new-car buyer who doesn't like a dealer's offer on a trade-in.

Refinance an auto loan: Looking for a way to free up more cash in your budget? Try refinancing your auto loan. Whenever interest rates are low, it's a good time to be shopping for a new and improved auto loan. The money you save can really add up, even if you only push the interest rate on your loan down a percentage point or two.

Transfer balances to a low-rate credit card: Teaser rates can't get any lower than this. Some issuers are offering card deals with zero-percent introductory rates. You won't be charged a penny of interest on transferred balances or new purchases for six months. So go ahead and transfer a balance or two. Pay off as much debt as possible during the card's introductory period.

Close off unused credit line: Simplify your life and lighten your wallet by closing off any unused credit card accounts. The aim is to get down to one or two credit cards and stay there. Ask the issuer to note in any statement to a credit bureau that the account was closed at the customer's request.

Retire card debt: It's time to get rid of credit card debt once and for all. The first step is to stop charging. Pay with cash or debit cards instead. When paying off card balances, zero in on one card at a time. Pay $25, $50, $100 or whatever you can spare on top of the minimum payment until the balance is gone. Then move on to the next card.

Freeze your minimum payment: You can cut interest and pay off your balance quicker just by freezing your minimum payment. If your current minimum payment is $150, then commit yourself to paying $150 or more each month until your card balance is paid off. Your card company will drop your minimum payment requirement as you chip away your balance. Ignore it. Stick with your frozen minimum payment, and watch your debt melt away.

-- Updated: Dec. 5, 2002