13 Financial Frights

Talk about a nightmare. Home values are down, credit has dried up, unemployment is rising and the stock market has tanked.

If the financial crisis has hit home for you, don't fear. We have the solutions you need to cope, no matter what haunts you.

Half Your Nest Egg Is Gone

If you're about to retire or have retired into this bear market, don't panic -- your account has time to recover. Remember, retirement is a 20- to 30-year proposition. And if you sell your stocks or stock funds, you'll lock in the losses and won't benefit when the market recovers.

More from Kiplinger.com:

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However, if you need peace of mind and already have accumulated a comfortable nest egg, you might want to shift your portfolio's asset allocation to hold more money in money-market funds or bond funds. The rates of return will be small, but stable.

Your Long-Term Investments Have Tanked

Even if you're far from retirement, your recent brokerage statements probably have you wondering if your buy-and-hold strategy is for suckers.

It's not. But if you're feeling uneasy about your stock investments, now's a good time to reevaluate your holdings. Long-term investors should keep at least 70% of their investments in stocks and stock funds. Spread your stock money over several types of companies -- large and small, U.S. and foreign. Resist the urge to put all of your money into bonds and cash. Remember the old adage, "buy low, sell high?" Well, things are pretty low right now, so look at this as an opportunity.

You're Locked Out of a HELOC

Falling home prices have eroded many homeowners' equity, and banks are reducing or freezing home equity lines of credit as a result.

To regain access to your credit line, you'll have to pay for a $200 to $400 walk-through appraisal to prove that your home's value and equity have sufficiently increased. Or you may be able to provide "comps," a record of recent comparable sales in your area that meet your lender's specifications. Chat with your lender if you have a unique or special situation.

You Can’t Pay Your Mortgage

Don't wait until you've missed several payments to talk to your lender. The lender may be willing to reduce your payments for a few months.

Or you might qualify to refinance your loan -- and get lower payments as a result -- if your lender is participating in any of the new government programs, such as FHASecure or HOPE for Homeowners (see fha.gov). If you're worried about foreclosure, contact the HOPE NOW Alliance.

You Can't Sell Your House

You have to be willing to make trade-offs to sell a house in this market. Set a realistic price from the get-go -- now is not the time to try to make a big profit.

Get rid of all your clutter and neutralize your home so prospective buyers can imagine living there with their own things. Have your home inspectedso you can advertise it as "certified preowned," or offer a home warranty.

Your Student Can't Get a Loan

You still have options if your student doesn’t qualify for federal Stafford loans or your source of private student loans has dried up (about 30 lenders have left the business). Check with the school's financial-aid office, which may be able to give your strapped student a tuition discount, a bridge loan or a tuition payment plan. Consider a PLUS loan, which is non–need based and lets parents of dependent students borrow up to the full cost of attendance. Standards on these federally backed loans have been relaxed recently.

Consider Web sites, such as Fynanz.com, where lenders bid to give you loans.

Your Card Issuer Is Clamping Down

A majority of banks have tightened their credit-card lending standards by raising required credit scores or lowering credit limits. They're also scrutinizing your credit-card use more frequently, looking at where you live and what you buy, and they are less likely to cut you slack for minor infractions.

To stay in your card issuer's good graces, pay your bills on time< and use each of your cards once a quarter so the lender won't close the account. Also, ask the lender to waive fees or reduce the interest rate, or just look elsewhere if your card issuer cracks down despite your good record.

You're Considering Bankruptcy

You may be overwhelmed with bills, but get help before filing for bankruptcy. First, tell your lenders about your struggles; they could lower your interest rate or move your payment date. Also contact a reputable credit-counseling agency, which can help you set a budget, negotiate with creditors and dig out of debt. Consider a debt-management program: You send the credit-counseling agency money every month, which it distributes to your creditors. The agency can also lower your interest rates and wipe out your penalties.

For more help, contact a bankruptcy attorney.

If your bank was insured by the Federal Deposit Insurance Corp., you probably don't need to worry . Account holders now have $250,000 in FDIC coverage for single accounts and $250,000 for their share of joint accounts at each bank. As long as your account balance stays below that limit, you won't lose any money.

If you are making credit-card or mortgage payments to that bank, continue sending checks until you hear otherwise.

Your Brokerage Is Broke

The Securities and Exchange Commission has strict rules about segregating client investments from the brokerage firm's own money. Even if a broker goes under, investors' money should still remain intact.

However, if a firm used up its capital and misappropriated customers' securities, the Securities Investor Protection Corp. (SIPC) helps protect account holders. It first tries to transfer investors' securities to another firm. If that doesn't work, SIPC then attempts to rebuild the investors' portfolios, even buying new stocks or bonds to make up for any missing shares.

You Lost Your Job

Of course you'll want to freshen up that resume, evaluate your career goals and start pounding the pavement. But also get your finances in order to help you weather this storm.

First, apply for unemployment benefits as soon as possible. Check if you qualify for health coverage through your spouse's employer, or ask your former employer about continuing your health insurance through COBRA.

Then draw up a survival budget, including the minimum payments you'll need to make to your creditors, and how long your emergency stash of cash will sustain you. Next, look for alternative sources of income, such as a part-time job -- even if it means waiting tables at night while you job-hunt by day.

Scammers Are Lurking

Just when you're feeling most vulnerable, the vultures swoop in. Scammers are taking advantage of the financial crisis to bilk Americans out of even more money, from questionable loans to get-rich-quick investment schemes.

Lower your risk of getting scammed by not giving in to financial panic, using common sense and doing your research before taking any action. Never give your credit-card number, bank-account number or Social Security number to someone who contacts you by phone or e-mail.

You Can't Make Ends Meet

Thanks to lower prices for gas and new cars, inflation overall in the U.S. is flat. But with the costs of health insurance, food and utilities going up, you're probably still feeling the pinch.

Start by taking an honest look at your spending -– almost everyone has fat they can trim. Check your tax withholding, too. If your situation requires more drastic action, consider getting a second job, selling your car and using public transportation, getting a roommate to cover housing costs or even moving to a cheaper city.