10 money mistakes you want to avoid

April may be the cruelest month, but here are some tips to avoid financial foolery:

1. Don't forget the April 15 tax deadline; file an extension if you can't meet it.

Even if you don't have the money to pay state or federal taxes, you'll get hit with penalties if you don't meet certain obligations. With the IRS, you can file for an Oct. 15 extension online at www.irs.gov or call (800) 829-1040. Check with your state comptroller for state information.

2. Don't get tripped up by those common tax-filing errors.

Three big ones are: Overstating or understating estimated tax payments; using figures that don't match W-2 forms; and missing out on refunds or credits. One of the most significant - the federal earned income tax credit - provides up to $4,700 for working families, "but at least one of every four eligible taxpayers leaves that money on the table," says California Controller John Chiang.

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Consolidate Your Student Loans Now!

STEVEN SCHELL, a 31-year-old attorney from New York, is almost as obsessed with interest rates as Federal Reserve Chairman Alan Greenspan. He may not have the weight of the U.S. economy riding on his shoulders — but he does have $40,000 in Stafford loans. Needless to say, that's quite a burden. To help ease the pain, in 2003 Schell consolidated his loans. Wise move. That saved Schell more than $400 a month (provided he only pays off the minimum on his new 30-year loan). Every year thousands of consumers like Mr. Schell take advantage of Federal Consolidation Loans in order to lock in the prevailing interest rate and lower their monthly payments by extending the payback period. Consumers with student debt who haven't yet taken advantage of this program — sorry folks, you can only do it once — have the opportunity to do so now and lock in the lowest rates in nearly 40 years. The government resets its lending rate anually in July. If you haven't consolidated your student loans, here's a quick tutorial on how to go about doing so. Consolidation 101
Federal Consolidation Loans were created as a debt-management tool to help consumers lower their monthly payments. As we mentioned above, a borrower can combine all of his federal student debt into one payment and lock in the prevailing rate for the lifetime of the loan.

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