It is all too easy to make purchases when you just have to pull out the "plastic." Easy that is, until all of the monthly bills arrive. Many families use credit to make ends meet and then find it hard if not impossible, to make all the monthly payments. That's when the "credit card blues" set in. If you have trouble just meeting your monthly payments, let it be a warning to you to cut back on credit use. If you have a hard time avoiding impulse buying, leave the credit cards at home. Keeping track of what you charge is another idea. Those purchases add up at the end of the month without you realizing it.

Credit Card Debt	$ Select One 0 1 - 2,499 2,500 - 4,999 5,000 - 7,499 7,500 - 9,999 10,000 - 12,499 12,500 - 14,999 15,000 - 19,999 20,000 - 29,999 30,000 - 39,999 40,000 - 49,999 50000+
Other Unsecured Debt	$ Select One 0 1 - 2,499 2,500 - 4,999 5,000 - 7,499 7,500 - 9,999 10,000 - 12,499 12,500 - 14,999 15,000 - 19,999 20,000 - 29,999 30,000 - 39,999 40,000 - 49,999 50000+
Number of Creditors	Select One 2 3 4+
Status of Bill Payments	Select One Up to Date About to Fall Behind 1 Month Behind 2 or More Months Behind
I want to	Select One Eliminate My Debt Consolidate My Debt Seek Advice
Own a Home?	Yes  No

Finding ways to reduce spending is hard for many families, but not impossible to do. Everyone in the family should be included in the cutbacks. The more involved the family is in planning ways to reduce spending, the more committed they will be to succeed. Itis also a good lesson for your children to learn early in life.

Be Credit Wise

Credit can be a friend or a foe. It can be an asset or a liability.

If you abuse the privilege, it can ruin future plans. As your family's money manager, you have the responsibility to use credit wisely. If you find your debts have piled up and you feel as if you are out of control, develop a plan to help you solve the problem. Getting out of debt takes a lot of work and self-discipline. It can't be done overnight, but it can be done!

Save, Buy Later? Rent? Buy on Credit?

John and Mary want to get a color televison with a remote control in time for Christmas. What should they do? Should they buy the TV on credit? Go to a "rent-to-own" store? or maybe they should wait until next Christmas ans save the money each week and pay cash for a new TV. It is necessary they decide if they have a real "need" for the televison, or if they just "want" a new TV.

Many people are attracted by the "rent to own" stores because they can satisfy their wants immediately. If you are thinking about making a major purchase, it is necessary to weigh the pro's and con's of each choice. Included here is a review of the options people would have in making such a purchase decision. Review carefully.Then, when you are faced with this type of buying decision, you will be better prepared for the purchase.

Since rent-to-own stores have become very popular,here are some questions you will want to ask about their contracts BEFORE making a purchase.

• What is the total cost? Multiply payment amount times the number of payments.
• Does the company guarantee the itme being rented is new?
• Can the customer buy the item outright at a reduced price at some point during the contract, or do they have to make all of the contracted payments to become the owner.
• Even though the company may provide repairs at no charge, does it also provide a substitute at no extra charge or stop payments during the repair period?
• Does the company require a large "balloon payment"? Can they reinstate the RTO contract without losing the investment up to that point?
• If the renter misses one or more paymentsc can they reinstate the RTO contract without losing the investment up to that point? Are there large penalties charged?
• Does the insurance company require the renter to purchase insurance on the rented item,even though the customer may already have home coverage?