Equifax, one of three major credit reporting agencies, says you should, "Check your credit report regularly. Checking your credit report can help you catch mistakes and fraud before they wreak havoc on your personal finances. Make sure your report is accurate and includes only those activities you've authorized. It's also a good idea to review your credit report from each of three major credit reporting agencies every year -- it's possible that information is reported to one but not others."

To that end, Equifax has developed a great tool for running your credit report. It is called "3-in-1 Credit Report". You can sign-up with Equifax and view your information with all three major credit reporting agencies at one time (this can also be done through other two credit reporting agencies- TransUnion and Expirion). Currently, this detailed report costs around $30 on Equifax website (www.equifax.com) and is well worth it. Running your credit report is an important first step in prevention and early detection of ID Theft.

For tips on how to further protect yourself from ID Theft, or if you believe your identity has been stolen, please visit FTC website (http://www.consumer.gov/idtheft/).

Lastly, know where you are going in next 10 years. Sure, you may be able to swing second mortgage now, but where will you be in 10 years. While nothing is ever certain, there are a few life altering events that could drastically change your finances. These include:

1.A spouse changing jobs or deciding to quit working to stay home with children

2.A spouse or child attending college

3.The birth or adoption of a child

4.Illness or death in family

So make sure to discuss your current situation with your friends and loved ones. If you plan on having another child or moving to one income, you may be better off waiting for a while. On same note, if you or your spouse will graduate college or receive a promotion, you can probably go ahead with loan.

When time comes to decide on a loan product, do not get pressured into signing something that you don't understand. Even if lender says that document is "standard" read through it cover to cover before signing. The final piece of advice for you would be to not take more than you need. Let's say that you have about $5,000 in home repairs that need to be done. Even if lender says that you can borrow $30,000 dollars, you shouldn't do it. Borrow only what you need. That way, you can be sure to repay loan in a timely fashion. Put any excess money into a savings or money market, so that you have a cushion should another emergency arise.