Business

Dear Liz: A few years ago I read that people who took Social Security payments early -- before their full retirement age -- could later opt to pay back their benefits and qualify for a higher payment based on their current age. I called Social Security and the person who answered the phone laughed, saying he had never heard of anyone paying back Social Security. Yet I saw this mentioned again on a financial show. Can you really start over with Social Security?

Dear Liz: I am trying to purchase another house and my credit is not so good. My FICO credit scores are all around 575. I am trying to correct this but don't know what to do to make a quick fix. I've been on time with my mortgage and credit card payments lately, but I have three cards with $500 limits that are all maxed out.

Dear Liz: I'm self-employed and have a Simplified Employee Pension account. Every year I borrow from an equity line to contribute the maximum to this account. My wife questions whether we are ahead by doing this. I say yes because we obviously save on the amount we pay in taxes and are paying only 5.25% on the equity line. We hope to pay off the loan in six months, plus we get to write off the interest. Is this a good plan?

Dear Liz: I've just graduated from college and landed a good job with a steady income. I contribute 10% of my salary to a 401(k) and my company contributes an additional 4%. My money is in a target-date retirement fund that matures in 2040. What's my next step? I am saving for rainy days and vacations, but my ultimate goal is to buy a house. I also have a lot to pay back in student loans. I am in a small town and don't know if I can get professional and unbiased financial advice.

Dear Liz: I think I'm being pursued illegally for a debt I don't owe. I visited a hospital in June 2007. It took my health insurer about six months to process the claim. Shortly after I received my benefits statement from the insurer, I received a call from a collection agency saying I had to call back immediately and give my credit card number to pay this debt. Instead, I called the doctor's office the next day. The receptionist told me my account was still open and had not been turned over to collections. I gave them my address and they sent me a bill, which I paid. A month later, I got another call from the collection agency, once again telling me I had to pay that very same day and that I had to call back with my credit card information. My requests to be faxed a bill have been ignored. When I asked that a bill be mailed to my home, the woman I talked to said the address I gave her was false (it wasn't). I just received another call, and the caller threatened to put this debt on my credit report if I don't pay. What is going on here? Is this fraud? I get really nervous with these calls, and I'm not sure what's going on here.

Dear Liz: I purchased my first home in December 2006 with no down payment, and closing costs were included in an adjustable-rate mortgage. The payment is already high and set to go even higher at the end of the year.

Dear Liz: The investments in my 401(k) have dropped more than 20% over the last year. My investments are mainly in stocks because I am relatively young (32), though I recently rebalanced to include some Treasury bills. Most of the investments offered by my company's 401(k) plan have been falling precipitously in recent months. Do you have any advice on how to better manage the drop? I'm not worried about it short term, but shouldn't we periodically adjust our investments given the economic climate to maximize returns or at least avoid what will likely be a falling stock market in the short term?

Dear Liz: I have been divorced for a few years. The divorce decree says I get to claim my daughter as a dependent and my ex is supposed to claim my son. The problem is that my ex beats me to the tax man every year and claims both children. What can I do to stop this?

Dear Liz: I'm confused about the upcoming tax rebate. In some articles the rebate is described as an advance on next year's refund. In others, experts say the rebate won't affect my refund. Which is correct?

Dear Liz: A debt I owe is appearing as two debts to two different companies on my credit report. One is the original company and the other is a collection agency. Can credit bureaus do that, and what happens if I don't pay either of them?