Your credit questions answered

For more information on managing your largest investment, check out Gerri Willis' 'Home Rich,' now in bookstores.

CDs & Money Market

MMA	1.04%
$10K MMA	1.13%
6 month CD	1.13%
1 yr CD	1.61%
5 yr CD	2.61%

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Rates provided by Bankrate.com.

NEW YORK (CNNMoney.com) -- Gerri Willis answers e-mailed questions about money. You too can have her answer one of yours.

Question 1. Is it a good idea to pay the credit debt from the money I have in a CD account that I save for emergencies? I have about $4,500 credit debt from two credit companies. I have about $6,000 in my CD. Javi

This is more of a financial decision.

If your CD earns 4% and you pay much higher interest for your credit debt - which is probably the case - what you pay to service your credit debt is canceling out what you're earning on your CDs and leaving you in the hole each month.

It's a better idea to pay off the credit debt first and then begin to build back your savings by setting aside the amount you were spending each month to pay off your credit debt according to Deanna Templeton of Credit.com.

Question 2. I found out last week my brother has $53,000 in credit card debt on 5 different cards. He makes $13,000 a year. I am trying to find ways to help but don't know where to begin. Mark

That's a tough spot.

Your brother should talk to a credit counselor at the National Foundation for Credit Counseling. That Web site is NFCC.org.

They may be able to put your brother on a debt management plan where he pays back his debts over three to five years. They can also negotiate with lenders to reduce the interest rate or penalties.

Question 3. As a college student, how should I go about saving up for retirement? Anonymous

Good job thinking about your retirement when you're still so young.

You need an income of some sort in order to contribute to an IRA. But the good news is that even if you have a part-time job you can put 100% of your income toward your retirement account. Even if it was just a summer job, you can contribute $5,000 toward the IRA.

Question 4. My son is in 10th grade and another in 6th grade. I don't want to do 529 funds because they will lose money now. I want to get the most from financial aid. Brad

529 college savings plans are tax-advantaged ways of saving for college, but 529s don't have to be stock-heavy. They can contain a variety of conservative investments, says Mark Kantrowitz of finaid.org.

Options range from money market accounts to bond funds and CDs. You can also use an age-based asset allocation fund that begins aggressively and becomes more conservative as your kids get closer to college age.

Since you do have a son who is close to entering college now, try getting as much scholarship money as you can. Check out fastweb.com for opportunities.