Years ago, there was relatively little consumer credit. People had mortgages on their homes, but there was not much installment credit and few credit card. Times have changed haven't they? Now households often get dozens of credit card solicitations monthly. And the newspapers are filled advertisements of lenders offering mortgage loans. They offer to consolidate bills, finance vacations or tuition and even provide tax savings. Some even offer to lend up to 25% in excess of the home's value.

    The answer on mortgage borrowing will vary from individual to individual. As with any credit, the consumer should not increase his debt load for trivial purposes. Folks shouldn't use a credit card to buy toothpaste or at a convenience store, particularly if the balance is not paid off each month. This is doubly true for mortgages, because 1.) mortgages tend to be longer term, causing the consumer to pay several times the amount of the loan in finance charges over the loan's life, and 2.) with a mortgage, the consumer will lose the home if he is unable to pay. Here are some tips on getting good deals and avoiding bad ones.

• As with all products, SHOP AROUND! For home acquisition financing, consumers should find the most advantageous combination of interest rates and closing costs.

• Keep current on all bills. Almost every mortgage lender will pay attention to consumer's credit history. If that is a history of no pay, slow pay or written off debts, they may not grant that person credit. If that person qualifies for any mortgage, it may be only for so called "B or C paper" loans, at higher rates which increases the ultimate payout by thousands of dollars.

• Carefully consider "do I really need this loan for this purpose?" For example, if the loan is advertised as lowering the individual's taxes by making more of the debt payments deductible, the borrower should consult a tax advisor to learn the actual tax impact of the transaction, and then weigh whether those savings are worth risking the home as collateral.

• If you are consolidating bills, do not consolidate debts bearing interest at rates that are lower or about equal to the interest rate on the mortgage. Unsecured creditors may generate collection calls or letters, they are seldom able to put you out of your house if you do not pay.

• If you are refinancing for a lower rate, make sure that the difference in payments will pay the amount of any closing costs within a relatively short time (approximately 1 2 years).

• Be careful with advertised 125%+ financing. People are used to being "upside down" in vehicle purchases, but owing more than your home is worth on your home mortgage is new. If you were fired or transferred and had to sell your home, what would you do if no buyer was willing to pay more than eighty percent of what you still owed?

• For home equity loans, consumers should always apply the "I'm betting the house" rule. That is, they are betting their home that they can continue to pay that mortgage and any other mortgage on the home until all the debts are paid. Contingency plans should be made in case income depended on to pay the bills is cut off. Borrowers should have an emergency fund to pay expenses (including mortgage) for six to eight months, in case of an unexpected loss of income.