Everyone's afraid to spend these days. Feeling the crunch, electronics manufacturers are trying to break the cycle by reducing prices. Whether you're looking to upgrade your computer system, invest in a better monitor, or finally get that handheld, some good deals are headed your way.

Don't assume prices will keep falling, however. Some reductions are because of excess inventory, and once the glut stabilizes, some experts say, prices could start to rise again.

Computers. With a depressed PC market, very fast systems that offer far better multimedia performance are becoming increasingly affordable.

The price cuts are driven by Intel's introduction of the new 1.7 GHz Pentium 4 chip. Intel debuted its latest Pentium 4 last Monday at about half the price it normally introduces its highest speed processors. New computers using this top of the line processor will go for about $1,800, monitor included - about half what they normally cost.

Older 1.3 GHz, 1.4 GHz, and 1.5 GHz chips are also slated for price cuts in the coming week. That means you could get a system using any of these super-fast chips for less than $1,000. To give some perspective, analysts point out that the 1 GHz Pentium III chip alone cost $1,299 a year ago.

The cuts in chip prices also mean that new, faster notebook computers are becoming more affordable as well. Dell has introduced a 700 MHz notebook, the Dell Inspiron 2500, with six to 12 months of free Internet access, for $1,049. Hewlett-Packard has also introduced new notebooks with 750 MHz chips, the Pavilion n5300 series, which range from $1,299 to 1,599. Analysts expect notebook price cuts and processor upgrades to continue over the summer.

If you extensively use digital video or music files for your business, then the falling prices of high-speed chips are your answer to a better computing experience. Otherwise, experts say, chips above 700 MHz don't differ much in how they perform basic business applications. Consider taking advantage of overall lower PC prices by upgrading to a 700 MHz system for under $900 - but don't pay much more if you don't need a chip faster than that.

LCD monitors. This may be the best time to upgrade your monitor. Flat-panel, LCD monitors offer clearer displays than regular monitors, and they can save desktop space and up to 45 percent in energy costs. They're also very affordable right now, with NEC-Mitsubushi, ViewSonic, Samsung, and IBM all announcing their 15-inch models going for an all-time low street price of $500. (That's down from $1,199 last year.) But jump soon - as the lower prices affect oversupply, prices may rise again.

Handhelds. Both Palm and Handspring have cut prices on their older handheld models. Faced with excess inventory, Palm has reduced the price of the Palm Vx to $299 from $349, the low-end 2 MB m100 model to $129 from $149, and the color Palm IIIc model to $299 from $329.

Rival Handspring is offering a $50 mail-in rebate on its Visor Deluxe model, bringing its cost down to $199. It has also cut $10 off the price of its entry-level 2 MB Visor model, bringing it down to $169.

Keep checking Palm and Handspring's Web pages for limited-time special offers as well. Palm is running a special through the end of the year where if you activate your Palm VIIx with $24.95/month Palm.net wireless service, you qualify for a $100 rebate on the $399 handheld.

Handspring is offering a deal in which you can save $50 off a Handspring modem, bringing its cost down to $79.95, if you buy it with any Handspring handheld. (Handspring's modems aren't wireless, though - they plug into your phone jack.)