Various variables are used In the analysis of households' economic conditions: household income, expenses, savings, debts. The main purpose of the article is a selection of optimal factors which will descnbe economic conditions of households. In the analysis categorial factors are used and the log-linear model is proposed for choosing the best variables set. Log-linear analysis is a type of multi-way frequency analysis which better than other methods describe relationship between categorial variables. The effect of interaction among variables might be also taken into account. The data from the Polish General Social Survey, carried out by the Institute for Social Studies of Warsaw University, were used in calculations. The 2005 PGSS survey is based on a sample of 1270 accepted questionnaires.
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