The best way to save for occasional household expenses, such as property taxes and homeowner's insurance, is to set aside 1/12 of the annual cost each month. Put this money in a savings account, rather than a checking account, so you are not tempted to spend it. When the bill comes due, you'll have the money set aside. If you can make your monthly deposits automatic, all the better. A "Spending Plan Worksheet" for calculating the monthly savings amount for occasional expenses is available at Spending Plan Worksheet as part of a Cooperative Extension home study course from Rutgers University called "Investing for Your Future."

As for remortgaging your house to consolidate your debt, it's all about the numbers. You need to look at your current interest rates and the interest rate on a new loan, the cost of fees to apply for a new loan, and the number of years that you expect to live in the house. A change makes sense only if it will result in a net financial savings.

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