Incomes aren't keeping pace with inflation. Anyone who buys gasoline, which is inching closer to $4 a gallon in the Intermountain area, or milk, which sells for about $2.75 a gallon, has firsthand knowledge of that.

Consumers are faced with difficult choices. They may postpone or curb discretionary spending. Some are becoming smarter shoppers by clipping coupons, keeping a close watch on newspaper inserts from grocers and using grocery store discounts on motor fuel purchases. Others are doing less driving and consolidating their errands.

But a whole lot of Americans are using their credit cards more often. U.S. borrowing in March rose to $2.56 trillion during March, suggesting the sluggish economy and the tighter standards for home-equity loans have resulted in substantially greater use of credit cards. The monthly increase was twice what economists had forecast.

This is not a healthy trend, particularly as credit card balances accumulate over time. If a consumer is so stretched he needs to use credit cards at an increasing rate, chances are he will be hard pressed to pay even the minimum required amount each time he receives statements. According to Bloomberg News Service, overdue payments at the six largest U.S. credit-card lenders reached their highest level since November 2004.

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What this means is many people are using credit cards to live beyond their means. People who are also caught in the adjustable-rate mortgage crisis or the real estate crunch may be using credit cards to get through the month.

Make no mistake, credit cards only postpone the inevitable. Unless one can pay off balances, interest and other fees accumulate each month, along with the charges for new purchases. In desperation, some people may seek more costly loans such as those offered by payday lenders, which charge an average of 500 percent interest annually.

It is difficult, in a consumer-driven economy, to contemplate the economic practices of previous generations. The savings ethic of our parents and grandparents is, by far, the soundest means to avoid the pitfalls of inflation outpacing incomes and spending beyond one's means. A household savings account should be viewed as a rainy day account. If the water heater fails, there should be sufficient savings to cover such an unexpected expense. In better times, savings can be used for a "wanted" item, such as a consumer electronic device or a vacation. In lean times, savings can be used to retire debt or to avoid it all together.

Instead of thinking plastic, Americans would be better served by thinking piggy bank.

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