Managing credit, debt and the flow of money in a family often goes something like this…

Alice Smith lets out a sigh as she looks over the bills for the month, trying to think how they’ll stretch the paycheck her husband Jim will bring home tonight. Groceries will take $800. Then there’s the house payment, light bill, payment on the new washer, payment on the car, shoes for the kids, and the cell, cable and telephone bills.

Already it adds up to almost as much as Jim’s paycheck will be.

And there’s that bill for the things she charged on Visa. A birthday gift to buy for Susan. Allowances for the children. And Jim really needs a new suit before his trip to New York at the end of the month. They’ve been planning to get it from month to month but there never seems to be enough cash to go around.

Alice decides she’ll talk with Jim about getting the suit on some type of installment plan. They never have bought clothes “on time,” but she sees no other way to get the suit by the time he needs it.

And so it goes… another “easy” payment !

More Debt: Good or Bad?

Many other families are in the same boat as the Smith’s – using more and more credit to buy the things they want.

Some folks say this is a bad situation. Others say it’s good – that wide use of credit is one of the things that helps to give us such a high standard of living in America.

Good or bad, many families and individuals do use credit in order to enjoy today… instead of waiting until they can save the purchase price of such things as automobiles, refrigerators, washers, Big screen TV’s, education, and even vacation trips. Others use credit in the form of a charge account simply as a convenience. Still others borrow money to meet emergencies, such as illness or being out of work. And some folks say that buying electronic equipment and furnishings for the home on the installment plan is a way of saving – that they wouldn’t be able to save the purchase price of such items without a contract to make them do it. Moreover, some will say, even though it costs more to buy “on time,” it’s worth the extra cost to have certain conveniences and comforts while the family is growing, rather than to wait until enough savings can be accumulated.

Does that sound like your situation? That’s one of the reasons so many are experiencing such difficult times. There is a way out… and we’ll be digging deeper into the world of consumer finance. Get ready to make some changes in the way you handle money!