Working with consumers directly each day gives you the benefit of a "front-line" perspective on economic changes in the US. Fed chairman, Ben Bernanke, said this week that US subprime foreclosure and mortgage delinquency woes will "likely get worse before they get better." Unfortunately, my experiences lead me to agree.

For the last few months, I&39;ve received a deluge of emails from consumers with credit problems who are coming up on an urgent refinance. Rising interest rates, the recent decision to drop authorized user accounts from FICO scores and big increases in consumer credit levels are all pointing toward trouble. Here&39;s one email I received this week:

I need to get refinanced by June of the next year when my interest-only mortgage resets. What can I do to increase my score? It is in the high 400&39;s (terrible), mostly due to debt from credit cards and medical bills. I&39;m scared because I&39;m not in a regular loan and my payment can (and will) change tremendously.

Yikes, a credit score in the 400&39;s usually represents several different credit and financial issues and isn&39;t likely to be resolved in a short amount of time. Paying down her active debt accounts down to a 10% debt-to-credit limit level could help. Adding new positive account information via a secured credit card could also do some good.

As for the medical collection records and any other negative accounts (liens, judgments, charge-offs) there isn&39;t much she can do. She should pay them off but understand at the same time that the payment will not do much to improve her credit.  Negative records like these remain on credit reports for 7 years, whether or not they are paid. This article on rebuilding credit has more tips.

Ideally, she should start working on improving her credit and weighing her refinance options now. Subprime mortgage lenders have cracked down on their underwriting standards and it will likely be hard to find a lender who will work with her (even if she improves her credit a 100+ points). Communicating with her lender, trying to find a co-signer for her refinance, contacting a HUD-approved counselor or even evaluating bankruptcy options are all good steps to take before it is too late.

Are you worried about an upcoming refinance? Share your advice and stories in the comments section below.

Emily Davidson is editor of CreditBloggers.com and a former credit expert for the credit bureau, TransUnion. She writes about credit and personal finance topics.