DEAR T.S.: With $170,000 a year income, you guys should be able to handle things reasonably well. You mentioned you've received a gift of $15,000. Unless you have some kind of zero-percent credit, I'd take the $15,000 and wipe away the credit cards, remembering how you got into hock and not repeat the error. Regarding the house, you've been trying to peddle it for over a year. What you're telling me is that you're asking for more than it's worth. You may say it's assessed at $219,000, but that has no relevancy. What a buyer is willing and able to pay, is. You haven't indicated whether you have attempted to lease the home. I suspect that you could probably cover the significant portion of your costs with a lease. Are you comfortable in that environment? Failing that, drop the price. Sooner or later it's going to sell. You realize too that sooner or later the market will recover. It could be much later than sooner.

DEAR BRUCE: We separated from our employer last month. We will soon be receiving severance in a lump-sum distribution. It will be approximately six months' worth of pay and medical premium payments. We will obviously need to live on this money for the next few months, but what is the best way to hold it as it is being used? Simply put it in a checking account? -- L.H., via e-mail

DEAR L.H.: You use the term "we" twice. Does that mean you and your spouse? Are both of you from the same employer or are you just including this in family income? You'll have six months' income if you prorate it, but that isn't a great deal. Further, you say you'll have to live on the money for the next few months. Is it possible to find some type or reduced-labor work? I know that this is not an attractive proposition, but it will certainly make you feel better about your income even if you're only making $200 to $300 a week each. That will certainly make your money go further. There's a sense of well being that you can't put a price on. You can put a portion of this money into perhaps a six-month CD, but that is going to return very little income. However, even an "interest bearing" checking account gives so little as to not make it worth consideration.