I need your help. Please share your opinion on the following situation:

I did a kitchen remodel and several other big home improvement projects last year for a guy. It was a great job at the time, even after lowering my price, because I was a little desperate for work. My crew and I completed the work to the owner's satisfaction. He had already paid part of the money, which didn't even cover the materials and my crew's labor.

He said that things were financially tough for his family because he had just lost his job and will be filing for bankruptcy which is why he wanted to get rid of all his liquid assets and put them into his house so that they could not be taken. I knew some of this information before-hand but he reassured me that I would be paid no matter what.

He negotiated a payment plan of $500 per month to be paid from now until the rest was paid in full (He owed me $5000 at the time). Being the nice guy that I am, I agreed to the deal but we never put anything down in writing. (I'm an idiot for not doing this!!! Trust me, I have kicked myself over and over because of it).

He paid $500 the first two months, but I have not seen another penny since then.

I emailed and called him a few times to see what was up. He responds every time by telling me that his bank account is dry and that he and his family are barely getting by right now. In the latest phone call I asked him when I can expect to see any of the money and he told me that he might be able to send me $100 next month, but that's all he can spare for now.

Part of me wants to go to a lawyer and see what my options are. But the other part of me thinks that I should just forgive and forget. There's something that feels wrong about forcing a guy to pay when he does'nt have any money and is trying to support a wife and two kids.

I could really use the money. In fact, this is one of the major factors (As well as loss of income and new business start-up costs) that led to Michelle and I going into debt this year. In other words, my family is suffering partly because of his failures. But is it right to make his family suffer any more than they already are just so I can become more financial stable?

I'm in a pickle.

What is your advice? What should I or could I do to make this situation better?

Should you buy a house now, later or never? That is the question.

Let's tackle the last one first: Never.

Most people think that buying a house in a financial investment. It can be, however, it usually is not. When you start to adding up the costs of buying, financing, and maintaining a house, renting will usually win. The exceptions are few and far between, but the reality is that buying a house is usually not a financial investment, but rather a life-style investment.

It is an investment in the life of your family and maybe in your own well-being. Sit down and right out the pros and cons of buying a house before you jump at the chance. The answer to your question may be "never."

Now or Later?

If buying a house is the right decision for you, then take these facts into consideration.

• The housing market is still at one of the lowest points in history. Now is the time to get good quality homes at low prices.
• The government is giving first-time home buyers $8,000 to stick in their pockets. Hello free money! This ends April 30, 2010!
• The government is still buying mortgage-backed securities to keep the interest rates low. This is going to end Mar 31, 2010! When this ends, mortgage rates will probably go up another point or two.

So, in regards to whether you should buy a house now rather than later, my advice is to just look at the facts. They speak for themselves. But be sure to make sure you have the money in the first place. If you don't have the money, it's never a good time to buy. Keep in mind that a good rule of thumb is to keep your mortgage payments less than 1/3 of your monthly income. Any home that is beyond this is simply not necessary.

What other factors go into your decision for buying a home now, later, or never?

I opened a free checking account the other day with First Bank. They were offering a $50 bonus, so I thought "why not?" It only took me a few minutes online.

Then, a few days later I got an envelope in the mail with my debit and credit cards. Inside the credit card information was this printed advertisement:

Is that not the most ridiculous ad you have ever seen! I can't believe they actually think that would be effective!

The sad part is, it probably is effective. Now, don't get me wrong, I'm all for reaping free cash back rewards with credit cards by paying for things like bills and other necessities- that's just being smart. But when an advertisement encourages you to spend $500 in order to get back $5 - That's absolutely crazy!

Crazy or not, many people will fall victim to this little ploy and end up spending 30% more than they probably should. It's amazing how credit card companies come up with these little "perks" to get into our little heads and make us think that spending is earning. Brilliant and ridiculous all at the same time.

Have you seen any ridiculous ads lately? Anything that makes you want to say REALLY?!!