Q: I took my credit cards and created myself a summer job – when I am not teaching – by building a house. I am almost finished building the house with my credit cards and about to go bankrupt. The banks tell me they will not make me a loan even when I finish the house, as my credit-card debt is too high. I tried to explain to them that I wanted to pay off the credit cards, but they said it made no difference. What should I do?

T.S., Pine Bluff, Ark.

A: If Joel Doelger had the power to turn back the clock, the director of counseling at Credit Counseling of Arkansas says he would have recommended you use a traditional builder’s spec loan to cover the initial cost of building the home. That would have allowed you to purchase supplies, but with a lower interest rate than the credit cards have charged.

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And to worsen matters in your case, given the current soft housing market, it may be difficult to sell a completed home, much less an almost completed home.

It’s a bit of a long shot, but Doelger says one loan product that could help both you and any potential home buyer is an FHA rehab loan that allows the buyer to roll the cost of home improvements into the initial loan.

If you found a buyer who would qualify for such a loan, he or she could buy the home now – as is – and roll the completion of the home into the initial loan. That would prevent the borrower from having to turn around right away to qualify for a second mortgage to complete the home. That could also get you out without having to sink additional money into it to make it marketable.

If you aren’t able to pay the credit-card bills with the sale of the house you might be able to use the services of a credit counseling agency, Doelger says. You’ll want what is called a debt management plan (DMP). A legitimate agency will help you determine your current financial situation and assess other options. 

The Federal Trade Commission produces a variety of useful brochures on financial issues, including one on how to select a credit counseling agency (ftc.gov/bcp/edu/pubs/consumer/credit/cre26.shtm).

Is reward card worth it?

Q: I’m being offered a new credit card by the bank that has my home mortgage account. It’s a home-rebate credit card with 1 percent of purchases applied to the principal of my mortgage. Do you think it’s worth having? How will a new card affect my credit score?

M.W., via e-mail

A: This offer from your lender leaves New York-based certified financial planner Erika Safran distinctly underwhelmed.

“I should spend $1,000 to reduce the principal on my mortgage by $10? So what?” she says. “I would have to spend $100,000 in one year to reduce it by $1,000.”

She is not averse to credit cards offering bonuses, mind you. But she would just prefer one that was a little richer with its rewards. She also offers this word of caution regarding new credit cards: They’ll increase the amount of credit available to you, potentially reducing your credit score.

Finding bond advice online

Q: I have had trouble finding a user-friendly bond site. I can’t find a site where I could peruse bonds, check out maturities, yield, etc. I would really appreciate it if you can direct a novice user.

M.C., Center Sandwich, N.H.

A: The bond market, vastly larger than the stock market, can indeed be a daunting place in which to navigate. There are several pay sites, which can be quite expensive and are aimed mainly at professional traders. Your brokerage house also should have Web-based information on bonds that’s available to clients.

For occasional investors, Travis Larson recommends investinginbonds.com, an educational website designed by the industry and sponsored by the organization for which he is a spokesman, the Securities Industry and Financial Markets Association (formed after a merger that included the Bond Market Association).

Larson says the site is appropriate for individuals with all levels of financial education, from beginners to experienced investors. 

Bonds are a fast-moving target. Here’s an area where it pays to check with your financial adviser, who typically will have access to proprietary research and trading programs. 

Got a question? Submit it to Steve Dinnen at money@csmonitor.com. Dinnen’s Financial Q&A column appears the first and third weeks of each month.