FIGHT BACK! BY DAVID HOROWITZ

        Now that we're into the countdown phase of the Christmas  shopping season, it's time to 
think about how we're going to pay  for those holiday gifts. This is not going to be one of those  
tear-up-the-cards-and-pay-cash ha-rangues. I'm not against using  credit cards for seasonal gift 
purchases -- within reason. What's  "reasonable" depends, of course, on how much you already 
owe and  how quickly you can pay off the balance after the holidays. If your cards are already 
maxed-out, you really have no decisions  to make. Even if you're offered a new card or a higher 
credit  limit, getting yourself deeper in debt is a bad idea -- period!  But if you're closer to the 
national aver-age, then you may have as  many as nine credit cards, three of which are 
multi-purpose bank  cards like Visa, MasterCard or Discover. And if your accounts are  paid up or 
have minimal balances owing, then it's tempting to run  up more debt this time of year. Again, 
that's OK if you have a  realistic plan for paying it off.
        The first thing you should consider is how much you can  afford to spend. For couples, this 
means agreeing on spending  limits, especially for each other and the children -- the people  we 
tend to spend the most money on. Single people may want to make  a list and assign limits to 
each person on that list. The goal is  to spend no more than you can pay off in six months. Forget 
the  minimum amount due each month. If you don't pay off more than that  each month, you will 
never get rid of that credit card balance.
        Choose which cards you want to use. Major department stores  recently raised their credit 
card interest rates signif-icantly,  some to 21 percent or more. You may be better off using a bank 
 card for your purchases unless they are small enough to pay off  completely when the bill 
arrives.
        You should know what interest rates your bank cards are  charging. Again, unless you plan 
to pay them off immedi-ately, use  the card with the lowest interest rate. You'll find the interest  
rate listed on your last monthly statement. You may also want to  consider incentive programs 
offered by some cards, such as  discounts, cash rebates, frequent flyer miles, free gasoline, and  
the like. Stick to one card if possible. Even minimum payments on  several different accounts will 
add up to more than a single  monthly payment on one account.
        If you do find yourself over your head in credit card debt,  try to find a lower interest debt 
consolidation loan to pay off  those accounts. If you can get a home equity loan, so much the  
better. Loans secured by the equity in your home carry lower  interest rates and the interest is 
generally tax deductible. Is it really that easy? No! New loans, especially those involving  real 
estate, cost money to arrange. Spreading short term debt over  a much longer term is very costly 
when you consider the total  amount of interest you will end up paying. There's also the danger  
that with your credit cards paid up, you'll go right back out and  run them up again.
        If overspending is the real problem, then get some guid-ance  from a non-profit consumer 
credit counseling service before you go  shopping this year. They'll help you put some realistic 
and  manageable limits on your Christmas spending.
        If you have any questions or comments, please write to David  Horowitz in the Consumer 
Forum+ (go FIGHTBACK). COPYRIGHT 1994 CREATORS SYNDICATE, INC.