Here's a real sign of desperation in the economy. The Wall Street Journal reports a rise in the number of people who are torching or otherwise destroying their cars in an effort to collect insurance money.

According to the report, they're drowning their vehicles in the Great Lakes and driving them into canals in California. In the desert West, there are even surveillance fraud teams going around by helicopter looking for people torching their cars. One investigator had 8 arsons in 36 hours!

Those with gap insurance may be especially tempted to commit insurance fraud by arson.

Remember, the longest your car note should ever be is 42 months. Why? At 42 months, you have very little risk of being upside down in your car.

The real solution here is to avoid a dilemma where you're contemplating insurance fraud in the first place. That means buying a used car for cash. For example, associate producer Joel recently bought a 2000 Nissan Altima for $3,200 in cash.