ARISTAR, INC.

                           ANNUAL REPORT ON FORM 10-K


                               Table of Contents



                                                             Page
                              PART I


Item 1.   Business . . . . . . . . . . . . . . . . . . . . . . .3
Item 2.   Properties . . . . . . . . . . . . . . . . . . . . . 14
Item 3.   Legal Proceedings. . . . . . . . . . . . . . . . . . 14


                             PART II

Item 5.   Market for the Registrant's Common Equity
           and Related Stockholder Matters . . . . . . . . . . 14
Item 7.   Management's Analysis of the Results of Operations
           for the Year Ended December 31, 1997. . . . . . . . 15
Item 8.   Financial Statements and Supplementary Data. . . . . 17
Item 9.   Changes in and Disagreements with Accountants on
           Accounting and Financial Disclosure . . . . . . . . 40

                             PART IV

Item 14.  Exhibits, Financial Statement Schedules and
           Reports on Form 8-K . . . . . . . . . . . . . . . . 40


Note: Items 4, 6, 10, 11, 12 and 13 are not included as per
      conditions met by Registrant set forth in General
      Instruction I(1)(a) and (b) of Form 10-K.


<PAGE> 3

                              PART I

Item 1.    Business

Aristar, Inc. (the "Company"), incorporated in Delaware in 1986 as a successor
to a company incorporated in 1927, is a holding company headquartered in
Tampa, Florida whose subsidiaries are engaged in the consumer financial
services business.  All of the Company's equity securities are owned
indirectly by Washington Mutual, Inc. ("Washington Mutual").

The Company's operations consist principally of a network of approximately 500
branch offices located in 23 states, primarily in the Southeast and Southwest.
These offices generally operate under the names Blazer Financial Services,
City Finance Company and First Community Financial Services.  The Company's
branch offices are generally located in small to medium-sized communities in
suburban or rural areas and are managed by individuals who generally have
considerable consumer lending experience.  The primary market for the
Company's consumer loans consists of households with an annual income of
$20,000 to $50,000.

The Company makes  consumer installment loans and purchases retail installment
contracts from local retail establishments.  These consumer credit
transactions are primarily for personal, family or household purposes.  The
Company also provides consumer financial services through its industrial
banking subsidiaries in Colorado and Utah.  In addition to making consumer
installment loans and purchasing retail installment contracts, these
subsidiaries also take customers' savings deposits (insured by the Federal
Deposit Insurance Corporation ("FDIC")).

Customer installment loans written in 1997 had original terms ranging from 12
to 360 months and averaged 64 months.  For the year ended December 31, 1997,
72% of the volume of all consumer installment loans was either unsecured or
secured by guarantors, luxury consumer goods, automobiles or other personal
property, with the remaining 28% being secured by real estate.  While the
interest yield on real estate secured loans is generally lower than for other
installment loans, such loans are typically larger and the ratio of cost to
amounts loaned is lower.  Additionally, credit loss experience on real estate
secured loans has been significantly lower than on other loan types.

Retail installment contracts are generally acquired without recourse to the
originating merchant and provide a vehicle for developing future loan
business.  Where these contracts result from the sale of consumer goods,
payment is generally secured by such goods, and, in some cases, a portion of
the purchase price is withheld from the merchant pending satisfactory payment
of the obligation.  Contracts are typically written with original terms from 3
to 60 months and for 1997 had an average original term of 26 months.

<PAGE> 4


Also, during 1997, the Company initiated a program to issue VISA credit cards
to its qualified existing customers.  At December 31, 1997, the Company had
$22.4 million in credit card receivables outstanding.

Customer installment loans are generally originated by customer application
either at the branch or by telephone with branch personnel.  A portion of
other installment  loans is generated through direct mail campaigns.  Retail
installment contracts are generally acquired through the originating merchant;
the Company had such arrangements with over 3,000 merchants at December 31,
1997.

From time to time, the Company also makes bulk purchases of existing loans and
contracts from the originating competitors or merchants.  Consumer finance
receivables acquired through such bulk purchases totaled $98.5 million in
1997, $88.1 million in 1996 and $64.7 million in 1995.

The following table sets forth the Company's loan originations including
renewals for the periods indicated:
<TABLE>

                                        Year Ended December 31,
<S>                              <C>             <C>            <C>
(Dollars in thousands)                     1997           1996           1995


Real estate secured loans        $      490,522  $     453,821   $    365,515
Other installment loans               1,283,553      1,090,601      1,290,408
Retail installment contracts            409,409        451,274        468,445
                                 $    2,183,484  $   1,995,696   $  2,124,368

</TABLE>

Portfolio Composition

The following table provides an analysis by type of the Company's consumer
finance receivables (net of unearned finance charges and deferred loan fees)
at the dates shown:
<TABLE>
                                               December 31,

(Dollars in thousands)                  1997            1996             1995
<S>                              <C>             <C>              <C>
Notes and Contracts Receivable:
 Amount                          $ 2,309,403     $ 2,185,903      $ 2,133,065
 Number of accounts                1,029,532       1,064,142        1,068,269
Type as a percent of
 Total Receivables
  Real estate secured loans             42.0%           40.7%            37.0%
  Other installment loans               44.0            42.6             46.1
  Retail installment contracts          14.0            16.7             16.9
                                       100.0%          100.0%           100.0%
</TABLE>

<PAGE> 5

At December 31, 1997, the average portfolio yield written by loan type was as
follows:

                                     Average Yield

     Real estate secured loans               12.7%
     Other installment loans                 25.2%
     Retail installment contracts            19.0%


The following table sets forth the percentage of net consumer finance
receivables by state at December 31, 1997.

State               %          Maryland           1.9%
Alabama          3.8%          Mississippi        4.4%
California       8.5%          New Mexico         1.3%
Colorado         8.5%          North Carolina     9.2%
Delaware         2.3%          Oklahoma           3.1%
Florida          5.4%          Pennsylvania       2.7%
Georgia          2.6%          South Carolina     5.7%
Idaho            1.2%          Tennessee         10.9%
Illinois         0.6%          Texas             10.7%
Kansas           0.2%          Utah               3.3%
Kentucky         2.1%          Virginia           4.9%
Louisiana        4.9%          West Virginia      1.8%


Geographic diversification of consumer finance receivables reduces the
concentration of credit risk associated with a recession in any one region.

Credit Loss Experience

The Company closely monitors portfolio delinquency in measuring the quality of
the portfolio and the potential for ultimate credit losses.  Under the
Company's policy, non-real estate secured delinquent accounts are charged off
when they become 180 days contractually delinquent (120 days prior to October
1, 1996).  Collection efforts continue after an account has been charged off
until the customer obligation is satisfied or until it is determined that the
obligation is not collectible or that the cost of continuing collection
efforts will not be offset by the potential recovery.


<PAGE> 6

The following table sets forth the credit loss experience for the past three
years and the allowance for doubtful accounts at the end of each year:
<TABLE>
                                                Year Ended December 31,
<S>                                   <C>            <C>            <C>
(Dollars in thousands)                     1997           1996           1995

Balance, January 1                    $  70,045      $  55,568      $  53,217

Provision for Credit Losses              66,600         58,800         48,500

Amounts Charged-Off Net of Recoveries:
 Amount(1)                              (65,051)       (46,418)       (47,879)
 Percent of Average Net Receivables(2)     (3.0%)         (2.2%)         (2.4%)

Allowance on notes purchased              2,729          2,095          1,730

Balance, December 31                  $  74,323      $  70,045      $  55,568
 Percent of Year-End Net Receivables        3.2%           3.2%           2.6%
</TABLE>

(1)  Under the Company's policy, non-real estate secured delinquent accounts are
     charged off when they become 180 days contractually delinquent (120 days
     prior to October 1, 1996).  Because of this change in policy, the charge-
     offs for the three years presented are not comparable.  The Company is not
     able to determine what the charge-offs would have been in prior years under
     the new policy had it been in effect January 1, 1995.

(2)  Average of consumer finance receivables  (net of unearned finance
     charges) at each month end during the period.


<PAGE> 7

<TABLE>
                                         Year Ended December 31,
<S>                             <C>            <C>            <C>
(Dollars in thousands)               1997           1996           1995

Balance, January 1              $  70,045      $  55,568      $  53,217
Provision                          66,600         58,800         48,500
Amounts charged off
 Real estate secured loans         (1,292)        (1,582)        (1,324)
 Other installment loans          (64,460)       (50,086)       (51,208)
 Retail installment contracts     (13,946)       (10,947)       (11,404)
                                  (79,698)       (62,615)       (63,936)
Recoveries
 Real estate secured loans            556            442            590
 Other installment loans           11,538         12,892         12,543
 Retail installment contracts       2,553          2,863          2,924
                                   14,647         16,197         16,057
Net charge-offs                   (65,051)       (46,418)       (47,879)

Allowances on notes purchased       2,729          2,095          1,730
Balance, December 31            $  74,323      $  70,045      $  55,568
</TABLE>



Due to the nature of the finance business, some customer delinquency and loss
is unavoidable.  The management of the consumer finance business attempts to
control customer delinquency through careful evaluation of each borrower's
application and credit history at the time the loan is made or acquired, and
appropriate collection activity.  The Company seeks to reduce its risk by
focusing on individual lending, making a greater number of smaller loans than
would be practical in commercial markets, and maintaining disciplined control
over the underwriting process.  The Company has a geographically diverse
portfolio as described in Portfolio Composition.  An account is considered
delinquent for financial reporting purposes when a payment is 60 days or more
past due, based on the original or extended terms of the contract.  The
delinquency and loss experience on real estate-secured loans is generally more
favorable than on other installment loans.

The following table sets forth the ratio of receivables delinquent for 60 days
or more on a contractual basis to gross receivables outstanding:

<TABLE>
<S>                                    <C>             <C>              <C>
                                                 December 31,
                                       1997            1996             1995

Real estate secured loans               0.8%            0.9%             1.2%
Other installment loans                 4.3             4.0              2.2
Retail installment contracts            3.2             2.6              1.7
</TABLE>


<PAGE> 8

Interest Rate Spreads and Cost of Borrowed Funds

A relatively high ratio of borrowings to invested capital is customary in
consumer finance activities due to the liquidity of the assets employed by the
business.  The spread between the revenues received from loans and interest
expense is a significant factor in determining the net income of the Company.

The table below sets forth certain percentages relative to the spread between
interest the Company received on the loan portfolio and interest expense for
each of the last three years:

<TABLE>
                                               Year Ended December 31,
<S>                                      <C>           <C>              <C>
                                         1997          1996             1995
Ratio to Average Net Receivables:
 Interest and Fee Income                 16.8%         17.6%            18.1%
 Interest and Debt Expense                5.7           5.6              5.6

Gross Spread                             11.1%         12.0%            12.5%
</TABLE>

The Company funds its consumer finance operations principally through net cash
flows from operating activities, short-term borrowings in the commercial paper
market, issuances of long-term debt and customer deposits.  The Company had
commercial paper outstanding at December 31, 1997 of $357.5 million at a 6.1%
weighted average interest rate.

In 1996, the Company entered into a $550 million revolving credit agreement
with several domestic and foreign banks.  The agreement, which replaced the
previous revolving credit agreement of $450 million, has a four-year term with
repayment in full of any balance outstanding in August, 2000.  There were no
borrowings under any of the above-described revolving credit agreements in
1997 or 1996.

In June, 1997, the Company filed an $800 million shelf registration statement.
Under this registration statement, the Company issued in October, 1997, $150
million of 6.3% senior notes maturing October 1, 2002; and, in November, 1997,
$150 million of 6.5% senior notes maturing November 15, 2003.

The Company also accepts customer deposits in its industrial banks.  Such
deposits totaled $163.2  million at December 31, 1997, $146.1 million at
December 31, 1996, and $160.8 million at December 31, 1995.

Provisions of certain of the Company's debt agreements restrict the payment of
dividends to a maximum prescribed proportion of cumulative earnings and
contributed capital and provide for the maintenance of minimum levels of
equity and maximum leverage ratios.  At December 31, 1997, approximately $23
million was available under the debt agreement restriction for future
dividends.


<PAGE> 9


Credit Insurance Operations

The Company makes available, at the option of its customers, credit life,
credit accident and health, and credit casualty insurance products.  Credit
life insurance provides that the customer's credit obligation, to the extent
of the policy limits, is paid in the event of death.  Credit accident and
health insurance provides for the payment of installments due on the
customer's credit obligation in the event of disability resulting from illness
or injury.  Credit casualty insurance insures payment, to the extent of the
policy limits, of the credit obligation or cost to repair certain property
used as collateral for such obligation in the event such property is destroyed
or damaged.

Purchase of such insurance is not a condition to obtaining a loan, although
the Company may require casualty insurance covering collateral to be obtained
from unaffiliated sources by the customer.  The Company does not sell
insurance to non-customers.  Credit insurance sold by the Company is written
by unaffiliated insurance companies and is substantially all reinsured by the
Company, which earns reinsurance premiums thereon.

Risk Factors

In addition to the other information in this Report on Form 10-K, the
following factors should be considered carefully:


Decline of Collateral Value May Adversely Affect Loan-to-Value Ratios

Approximately 42% of the Company's finance receivables outstanding were
secured by real estate at December 31, 1997, of which approximately 59% were
first mortgages.  The Company's lending policies limit the loan to value
("LTV") ratio of such loans to a maximum of 80%.  Nevertheless, any material
decline in real estate values reduces the ability of borrowers to use home
equity to support borrowings and increases the LTV's of loans previously made
by the Company, thereby weakening collateral coverage and increasing the
possibility of a loss in the event of a borrower default.  Further,
delinquencies, foreclosures and losses generally increase during economic
slowdowns or recessions.   Any sustained period of such increased
delinquencies, foreclosures and losses could adversely affect the Company's
results of operations and financial condition.  At December 31, 1997, the
Company held forty-two (42) foreclosed single-family dwellings with a carrying
value of approximately $1.6 million.

<PAGE> 10


Change in Delinquency Rate

As of December 31, 1997, total delinquent loans (60 days or more past due) as
a percentage of the Company's portfolio of finance receivables was 2.7%
compared to 2.6% as of December 31, 1996.  For the year ended December 31,
1997, loan charge-offs were 3.0% of average loan receivables for the year.
While the Company employs underwriting criteria and collection methods to
mitigate the risks inherent in loans made to its customers, no assurance can
be given that such criteria or methods will afford adequate protection against
such risks.  In the event that the Company's portfolio of finance receivables
experiences higher delinquencies, foreclosures or losses than anticipated, the
Company's results of operations or financial condition could be adversely
affected.

Impact of Regulation and Legislation; Regulatory Enforcement

The Company's business is subject to extensive regulation, supervision and
licensing by governmental authorities in the United States (including federal,
state and local authorities).  The Company is also subject to various laws,
regulations and judicial and administrative decisions imposing requirements
and restrictions on part or all of its operations.  The Company's lending
activities are subject to the Truth-in-Lending Act (including the Home
Ownership and Equity Protection Act of 1994), the Fair Housing Act, the Equal
Credit Opportunity Act, the Fair Credit Reporting Act, the Real Estate
Settlement Procedures Act ("RESPA"), the Home Mortgage Disclosure Act and the
Fair Debt Collection Practices Act and regulations promulgated thereunder,  as
well as other federal,  state and local statutes and regulations affecting the
Company's activities.  The Company is also subject to the rules and
regulations of, and examinations by, state regulatory authorities with respect
to originating, processing, underwriting and servicing loans.  These rules and
regulations, among other things, (i) impose licensing obligations on the
Company, (ii) establish eligibility criteria for mortgage loans, (iii)
prohibit discrimination, (iv) provide for inspections and appraisals of
properties, (v) require credit reports on loan applicants, (vi) regulate
assessment, collection, foreclosure and claims handling, (vii) mandate certain
disclosures and notices to borrowers and (viii) in some cases, fix maximum
interest rates, fees and loan amounts.  Failure to comply with these
requirements can lead to termination or suspension of the Company's ability to
make and collect loans, certain rights of rescission for mortgage loans, class
action lawsuits and administrative enforcement actions.  Recent Federal
legislation, the Riegle Community Development and Regulatory Improvement Act
(the "Riegle Act"), has brought additional regulatory attention to mortgage
loans having relatively higher origination fees and interest rates, such as
those made by the Company, and the Company expects its business to be the
focus of additional United States federal and state legislation, regulation
and possible enforcement in the future.

Additionally, the Company's sale of credit life, credit disability, and credit
property insurance to its customers is subject to state and federal statutes
and regulations.   Failure to comply with any of the foregoing state and
federal requirements could lead to imposition of civil penalties on the
Company, class action lawsuits and administrative enforcement activities.


<PAGE> 11

The laws and regulations described above are subject to legislative,
administrative and judicial interpretation, and certain of these laws and
regulations have been infrequently interpreted or only recently enacted.
Infrequent interpretations of these laws and regulations or an insignificant
number of interpretations of recently enacted regulations can result in
ambiguity with respect to permitted conduct under these laws and regulations.
Any ambiguity under the regulations to which the Company is subject may lead
to regulatory investigations or enforcement actions and private causes of
action, such as class action lawsuits, with respect to the Company's
compliance with the applicable laws and regulations.  As a consumer lender,
the Company has been, and expects to continue to be, subject to regulatory
enforcement actions and private causes of action from time to time with
respect to its compliance with applicable laws and regulations.  The Company's
lending practices have in the past been and currently are under regulatory
review by various state authorities.  Although the Company utilizes systems
and procedures to facilitate compliance with these legal requirements and
believes that it is in compliance in all material respects with applicable
laws, rules and regulations, there can be no assurance that more restrictive
laws, rules and regulations will not be adopted in the future, or that
existing laws and regulations will not be interpreted in a more restrictive
manner, which could make compliance more difficult or expensive.  See
"Business- Regulation."

Risks Relating to Credit Card Program

During 1997, the Company initiated a program to issue VISA credit cards to its
qualified existing customers.  At December 31, 1997, the Company had $22.4
million in credit card receivables outstanding.  Due to the recent
introduction of its credit card product, the Company does not yet have a
reliable loss experience with respect to its credit card portfolio.  To the
extent that actual losses in the credit card portfolio are greater than the
Company's loss experience on the balance of its portfolio, there could be a
material adverse effect on the Company's results of operations.  Changes in
laws and regulations applicable to the VISA cards could adversely affect the
demand for acquisition and use of VISA cards by consumers and, therefore,
could adversely affect the benefits of the VISA card program or result in
losses to the Company.

Risk of Litigation

In the ordinary course of its business, the Company is subject to claims made
against it by borrowers arising from, among other things, losses that are
claimed to have been incurred as a result of alleged breaches of fiduciary
obligations, misrepresentations, errors and omissions of employees, officers
and agents of the Company, incomplete documentation and failures by the
Company to comply with various laws and regulations applicable to its
business.  The Company believes that liability with respect to any currently
asserted claims or legal actions is not likely to be material to the Company's
consolidated results of operations or financial condition; however, any claims
asserted in the future may result in legal expenses or liabilities that could
have a material adverse effect on the Company's results of operations and
financial condition and could distract members of management from the
operations of the Company.


<PAGE> 12

Fluctuations in Interest Rates May Adversely Affect Profitability

The profitability of the Company is likely to be adversely affected during any
period of rapid changes in interest rates.  A substantial and sustained
increase in interest rates could adversely affect the spread between the rate
of interest received by the Company on its loans and the interest rates
payable under its debt and deposit liability agreements.  Such interest rate
increases could also affect the ability of the Company to originate loans.  A
significant decline in interest rates could decrease the balance of the finance
receivables portfolio by increasing the level of loan prepayments.

New Market Risk

The State of Texas recently passed a constitutional amendment which permits
home equity lending.  The Company anticipates that a large market for home
equity loans will develop in Texas.  The Company has operated its consumer
finance business in Texas for many years and intends to introduce its home
equity products in Texas to take advantage of this new opportunity.  Since
there is no industry experience with home equity lending in Texas and since no
cases interpreting the home equity lending provisions in Texas have yet been
decided, no assurance can be given that the Company's loss experience in its
home equity lending in Texas will not exceed that of its real estate secured
loan portfolio in other states.

Competition Could Adversely Affect Results of Operations

Competition in the consumer finance business is intense.  The consumer lending
market is highly fragmented and has been serviced by commercial banks, credit
unions, and savings institutions, as well as by other consumer finance
companies.  Many of these competitors have greater financial resources and may
have significantly lower costs of funds than the Company.  Even after the
Company has made a loan to a borrower, the Company's competitors may seek to
refinance the Company's loan in order to offer additional loan amounts or
reduce payments.  Furthermore, the profitability of the Company and other
similar lenders is attracting additional competitors into this market, with
the possible effect of reducing the Company's ability to charge its customary
origination fees and interest rates.  In addition, if the Company expands into
new geographic markets, it will face competition from lenders with established
positions in these locations.  There can be no assurance that the Company will
be able to continue to compete successfully in the markets it serves.  Such an
event could have a material adverse effect on the Company's results of
operations and financial conditions.  See "Business-Competition."


<PAGE> 13

Environmental Liabilities

Substantially all of the Company's real estate receivables are secured by
single-family dwellings.  In the course of its business, the Company has
acquired, and may acquire in the future, such properties securing loans that
are in default. There is a risk that hazardous substances or waste,
contaminants, pollutants or sources thereof could be discovered on such
properties after acquisition by the Company.  In such event, the Company may
be required by law to remove such substances from the affected properties at
its sole cost and expense.  There can be no assurance that (i) the cost of
such removal would not substantially exceed the value of the affected
properties or the loans secured by the properties, (ii) the Company would have
adequate remedies against the prior owner or other responsible parties or
(iii) the Company would not find it difficult or impossible to sell the
affected properties either prior to or following such removal.  At December
31, 1997, the Company held forty-two (42) foreclosed single-family dwellings
with a carrying value of approximately $1.6 million.

Governmental Regulation

The Company's operations are, for the most part, regulated by federal and
state consumer finance laws or similar legislation.  All of the states in
which finance subsidiaries of the Company are licensed to do business have
laws, which vary from state to state, regulating the consumer finance
business.  These laws, among other things, typically limit the size of loans,
set maximum interest rates and maximum maturities and regulate certain lending
and collection activities.  Although consumer finance laws have been in effect
for many years, amending and new legislation is frequently proposed.  The
Company is unable to predict whether or when any such proposals might
ultimately be enacted into law or to assess the impact any such enactment
might have on the Company.  In addition, as they accept customers' deposits,
the two banking subsidiaries are subject to regulation by the FDIC and the
relevant state banking authorities.


Competition

The consumer financial services business is highly competitive.  The Company's
principal competitors are other local, regional and national finance
companies, banks, credit unions, savings associations, and other similar
financial institutions.

Ratio of Earnings to Fixed Charges

The Company's ratio of earnings to fixed charges, which represents the number
of times fixed charges were covered by earnings, was 1.57 in 1997, 1.80 in
1996, 1.91 in 1995, 1.96 in 1994 and 1.90 in 1993.  For purposes of computing
this ratio, earnings consist of income from operations before income taxes
plus fixed charges.  Fixed charges consist of interest and debt expense and
an appropriate portion of rentals.



<PAGE> 14


Employees

The Company employs approximately 2,400 full-time employees.  The Company also
employs part-time employees.  None of these employees are represented by a
union.  Management considers relations with its employees to be satisfactory.

Item 2.   Properties

The Company owns its 71,000 square foot headquarters building on 6 acres of
land, which it built in 1994 at a total cost of approximately $8 million.

The Company's branch offices, located in 23 states, are leased typically for
terms of three to five years with options to renew.  Typical locations include
shopping centers, office buildings and storefronts, generally of relatively
small size sufficient to accommodate a staff of four to eight employees.

See Note 14 to the Consolidated Financial Statements for additional
information on rental expense and lease commitments.


Item 3.   Legal Proceedings

The Company and certain of its subsidiaries are parties to various lawsuits
and proceedings arising in the ordinary course of business.  The Company has
also been named as a defendant in a number of class action suits, in which
various industry-wide practices arising from routine business activities are
being challenged and various damages are being sought.  Certain of these
lawsuits and proceedings arise in jurisdictions, such as Alabama, that permit
damage awards disproportionate to the actual economic damages incurred.  Based
upon information presently available, the Company believes that the total
amounts that will ultimately be paid, if any, arising from these lawsuits and
proceedings will not have a material adverse effect on the Company's
consolidated results of operations and financial position.  However, it should
be noted that the frequency of large damage awards, including large punitive
damage awards, that bear little or no relation to actual economic damages
incurred by plaintiffs in jurisdictions like Alabama continues to increase and
creates the  potential for an unpredictable judgment in any given suit.

                             PART II

Item 5.   Market for the Registrant's Common Equity and Related Stockholder
          Matters

The Company is an indirect wholly-owned subsidiary of Washington Mutual and
the Company's common stock is not traded on any national exchange or in any
other established market.

Payment of dividends is within the discretion of the Company's Board of
Directors; however, it is anticipated that the Company will pay quarterly
dividends in 1998 of 30% of net income.  Provisions of certain of the
Company's debt agreements restrict the payment of dividends to a maximum
prescribed proportion of cumulative earnings and contributed capital and
otherwise provide for the maintenance of minimum levels of equity and maximum
leverage ratios.  The Company declared and paid dividends totaling $17.5
million during 1997 and $116.8 million during 1996.

<PAGE> 15


Item 7.    Management's Analysis of the Results of Operations for
           the Year Ended December 31, 1997

The Company's average net consumer finance receivables outstanding were $90.8
million, or 4.3%, greater in 1997.  However, because real estate secured loans
made up a greater portion of the loan portfolio during 1997 as compared to
1996, and because of interest rate and competitive pressures, the overall
portfolio yield decreased 80 basis points to 16.8% from 17.6%.  In the year
ended December 31, 1997, the Company reduced interest and fee income by the
pre-tax amount of $4.2 million, resulting from the revision of its estimate of
interest earnings on "same as cash" retail installment contracts.  (See Note 5
to the accompanying financial statements.)   As a result, loan interest and
fee income decreased $714 thousand, or 0.2%, for the year ended December 31,
1997, as compared to the prior year.  Income from investment securities
increased $1.2 million, or 13.0%, over the prior year.  As a result, total
interest income increased by $476 thousand, or 0.1%, over the prior year.
Average debt outstanding increased $248 thousand, or 15.1%, and the weighted
average interest rate on such debt decreased by 53 basis points, resulting in
an increase in interest and debt expense of $8.1 million, or 6.7%, for the
year ended December 31, 1997, as compared to 1996.

During 1997, the Company issued the following senior notes: in October, $150
million at 6.30% maturing in 2002; and, in November, $150 million at 6.50%
maturing in 2003.  The proceeds were used to reduce borrowings of the Company
(including outstanding commercial paper) and for general corporate purposes.

The provision for credit losses for the year ended December 31, 1997 was 3.03%
as a percentage of average net finance receivables for that period, as
compared to 2.79% for 1996.  The increase in provision rate reflects
management's assessment of the quality of the Company's receivables portfolio
at this time including current economic trends, loan portfolio agings,
historical loss experience and evaluation of collateral.

Delinquencies in excess of 60 days rose to 2.7% at December 31, 1997 compared
to 2.6% at December 31, 1996, and 1.8% at December 31, 1995.  Correspondingly,
the charge-off rate as a percent of average net receivables moved higher in
1997, reaching 3.0% as compared to 2.2% in 1996, and 2.4% in 1995.  Under the
Company's policy, non-real estate secured delinquent accounts are charged off
when they become 180 days contractually delinquent (120 days prior to October
1, 1996).  Because of this change in policy, the charge-offs for the three
years presented are not comparable.  The Company is not able to determine what
the charge-offs would have been in prior years under the new policy had it
been in effect January 1, 1995.  This increase in delinquencies and charge-offs
reflects a continued high level of personal bankruptcies, a national
trend which has drawn the attention of federal and state legislators.

Personnel expenses were $2.3 million, or 3.1%, lower in 1997 as compared to
1996.  This is primarily due to a reduction in allocated employee benefit
costs.

<PAGE> 16


In 1996, there was an $8.0 million insurance recovery resulting from
fraudulently over-billed marketing costs which had occurred over a number of
years.  (See Note 4 to the accompanying financial statements.)  Other
operating expenses before the above-described insurance recovery were $531
thousand, or 1.3%, higher in 1997 as compared to 1996.  Productivity, defined
as the ratio of operating and administrative expenses (before deferral of
direct loan costs and, in 1996,  the above described insurance recovery) to
average outstanding finance receivables, improved to 6.6% in 1997 as compared
to 6.8% in 1996.

The Company has initiated a program to prepare the Company's computer system
and applications for years after 1999.  Many computer programs use two digits
to identify the year in a date field.  When computations involve years after
1999, such programs could create erroneous results or fail.  The Company is
assessing all internal programs and systems as well as contacting software
vendors and others with which it conducts business to ensure that potential
problems are identified and resolved.  The Company expects to incur internal
staff costs as well as consulting and other expenses related to infrastructure
enhancements necessary to prepare the systems for the years after 1999 and to
perform appropriate testing.  The Company does not believe that such process
will result in a material cost to the Company.


<PAGE> 17

Item 8.  Financial Statements and Supplementary Data

Report of Independent Certified Public Accountants

To the Board of Directors and Stockholder of
  Aristar, Inc.

We have audited the accompanying consolidated statement of financial condition
of Aristar, Inc. and subsidiaries (the "Company") as of December 31, 1997, and
the related consolidated statements of operations and retained earnings, and
cash flows for the year then ended.  These consolidated financial statements
are the responsibility of the Company's management.  Our responsibility is to
express an opinion on these consolidated financial statements based on our
audit.  The consolidated financial statements of the Company for the years
ended December 31, 1996 and 1995 were audited by other auditors whose report,
dated January 17, 1997, expressed an unqualified opinion on those consolidated
statements.

We conducted our audit in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.  An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.  We believe that our audit provides a reasonable basis
for our opinion.

In our opinion, such 1997 consolidated financial statements present fairly, in
all material respects, the financial condition of the Company as of December
31, 1997, and the results of its operations and its cash flows for the year
then ended in conformity with generally accepted accounting principles.



DELOITTE & TOUCHE LLP
Tampa, Florida
January 20, 1998


<PAGE> 18

Report of Independent Certified Public Accountants

To the Board of Directors and Stockholder of
 Aristar, Inc.

In our opinion, the consolidated statements of financial condition and the
related consolidated statements of operations and retained earnings and of
cash flows as of and for each of the two years in the period ended December
31, 1996 (appearing on pages 19 through 21 of this Form 10-K Annual Report)
present fairly, in all material respects, the financial position, results of
operation and cash flows of Aristar, Inc. and it subsidiaries as of and for
each of the two years in the period ended December, 31, 1996, in conformity
with generally accepted accounting principles.  These financial statements are
the responsibility of the Company's management; our responsibility is to
express an opinion on these financial statements based on our audits.  We
conducted our audits of these statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and the significant estimates made by
management, and evaluating the overall financial statement presentation.  We
believe that our audits provide a reasonable basis for the opinion expressed
above.  We have not audited the consolidated financial statements of Aristar,
Inc. and its subsidiaries for any period subsequent to December 31, 1996.

As described in Note 3, during 1996, the Company acquired two businesses from
affiliated companies.  Both transactions were accounted for in a manner
similar to a pooling of interests, which gave retroactive effect to these
acquisitions.





PRICE WATERHOUSE LLP
Tampa, Florida
January 17, 1997

<PAGE> 19

<TABLE>
ARISTAR, INC. and Subsidiaries
Consolidated Statements of Financial Condition

(Dollars in thousands)                December 31, 1997     December 31, 1996
<S>                                    <C>                   <C>
ASSETS
Consumer finance receivables, net      $      2,235,080      $      2,115,858
Investment securities                           154,475               137,072
Cash and cash equivalents                        26,446                22,660
Property and equipment, less accumulated
 depreciation and amortization: 1997,
 $22,310; 1996, $21,528                           9,687                10,338
Deferred charges                                 24,504                11,956
Excess of cost over equity of
 companies acquired, less accumulated
 amortization: 1997, $59,702; 1996, $52,638      49,591                56,655
Other assets                                     34,245                37,319

   TOTAL ASSETS                        $      2,534,028      $      2,391,858

LIABILITIES AND STOCKHOLDER'S EQUITY

Liabilities
Short-term debt                        $        357,532      $        398,006
Long-term debt                                1,472,872             1,352,770
   Total debt                                 1,830,404             1,750,776
Customer deposits                               163,185               146,138
Accounts payable and other liabilities           47,209                46,366
Federal and state income taxes                   24,628                13,836
Insurance claims and benefits reserves            7,824                 7,702
Unearned insurance premiums and
 commissions                                     62,594                57,800
   Total liabilities                          2,135,844             2,022,618

Commitments and contingencies
 (Notes 14 and 15)

Stockholder's equity
Common stock: $1.00 par value;
 10,000 shares authorized: 1,000
 shares issued and outstanding                        1                     1
Paid-in capital                                  44,894                44,894
Retained earnings                               352,756               323,969
Net unrealized holding gain on
 investment securities                              533                   376
    Total stockholder's equity                  398,184               369,240

  TOTAL LIABILITIES AND
   STOCKHOLDER'S EQUITY                   $   2,534,028        $    2,391,858

</TABLE>
See Notes to Consolidated Financial Statements.

<PAGE> 20


ARISTAR, INC. and Subsidiaries
Consolidated Statements of Operations and Retained Earnings
<TABLE>
                                             Year Ended December 31,
(Dollars in thousands)                     1997             1996          1995
<S>                                  <C>              <C>           <C>
Loan interest and fee income         $  369,600       $  370,314    $  363,448
Investment securities income             10,373            9,183         8,801
  Total interest income                 379,973          379,497       372,249

Interest and debt expense               128,887          120,758       114,917

Net interest income before
  provision for credit losses           251,086          258,739       257,332

Provision for credit losses              66,600           58,800        48,500

  Net interest income                   184,486          199,939       208,832

Other operating income
    Net insurance operations
     and other income                    26,555           27,205        29,235

Other expenses
    Personnel expenses                   69,468           71,724        67,938
    Occupancy expense                    10,068            9,919        10,681
    Advertising expense                   5,807            4,848         5,873
    Amortization of excess cost over
     equity of companies acquired         7,064            7,063         7,065
    Other operating expenses             42,603           34,072        38,768
                                        135,010          127,626       130,325

Income before income taxes               76,031           99,518       107,742

Provision for federal and
  state income taxes                     29,744           37,000        42,445

Net Income                               46,287           62,518        65,297

Retained earnings
    Beginning of year                   323,969          428,273       385,476
    Dividends                           (17,500)        (116,800)      (22,500)
    Transfer to Great Western Bank,
     A Federal Savings Bank                              (15,192)
    Transfer to Great Western
       Financial Corporation                             (34,830)
    End of year                      $  352,756       $  323,969    $  428,273

</TABLE>
See Notes to Consolidated Financial Statements.

<PAGE> 21

ARISTAR, INC. and Subsidiaries
Consolidated Statements of Cash Flows
<TABLE>
                                                Year Ended December 31,
<S>                                   <C>            <C>            <C>
(Dollars in thousands)                      1997           1996           1995

Cash flows from operating activities
 Net income                           $   46,287     $   62,518     $   65,297
 Adjustments to reconcile net income
  to net cash provided by operating
  activities
   Provision for credit losses            66,600         58,800         48,500
   Depreciation and amortization          13,750         13,523         13,148
   Deferred income taxes                  (4,060)       (16,188)           (13)
   Increase (decrease) in
    Accounts payable and other
     liabilities                             843        (21,313)       (30,432)
    Unearned insurance premiums
     and commissions and insurance
     claims and benefits reserves          4,916            737          2,900
    Currently payable income taxes        14,734         18,455          4,511
   (Increase) decrease in other assets     3,074        (23,464)        10,021

    Net cash provided by operating
     activities                          146,144         93,068        113,932

Cash flows from investing activities
 Investment securities purchased         (62,582)       (40,331)       (55,884)
 Investment securities matured            45,454         43,317         43,223
 Consumer finance receivables
  originated or purchased             (1,493,058)    (1,407,334)    (1,484,545)
 Consumer finance receivables
  repaid                               1,293,161      1,308,184      1,299,233
 Net change in property and equipment       (998)          (665)          (602)

   Net cash used in investing
    activities                          (218,023)       (96,829)      (198,575)

Cash flows from financing activities
 Net change in short-term borrowings     (40,474)        85,130        133,791
 Proceeds from issuance of
  long-term debt                         326,344        453,539         99,909
 Long-term debt issue costs               (2,952)        (2,615)        (1,162)
 Repayments of long-term debt           (206,800)      (105,000)      (189,000)
 Net change in customer deposits          17,047        (14,634)        30,719
 Net change in due to affiliate                        (237,576)        34,361
 Dividends paid                          (17,500)      (116,800)       (22,500)
 Transfer to Great Western Bank,
   A Federal Savings Bank                               (15,192)
 Transfer to Great Western
  Financial Corporation                                 (34,830)
  Net cash provided by financing
   activities                             75,665         12,022         86,118

Net increase in cash and
  cash equivalents                         3,786          8,261          1,475

Cash and cash equivalents
 Beginning of year                        22,660         14,399         12,924
 End of year                         $    26,446    $    22,660      $  14,399

Supplemental disclosures of
 cash flow information
  Interest paid                      $   125,841    $   118,038      $ 113,665
 Intercompany payments in lieu of
  federal and state income taxes          23,011         49,612         35,339
</TABLE>

See Notes to Consolidated Financial Statements.


<PAGE> 22


ARISTAR, INC. and Subsidiaries
Notes to Consolidated Financial Statements


Note 1     Ownership and Operations

At June 30, 1997, Aristar, Inc. was an indirect, wholly-owned subsidiary of
Great Western Financial Corporation ("GWFC").  On July 1, 1997, pursuant to an
Agreement and Plan of Merger announced March 6, 1997, GWFC merged with and
into a wholly-owned subsidiary of Washington Mutual, Inc. ("Washington
Mutual") (the "Great Western Merger").  As a result of this merger, Aristar,
Inc. became an indirect, wholly-owned subsidiary of Washington Mutual.  The
Great Western Merger was accounted for as a pooling of interests.
Accordingly, these financial statements reflect historical cost.  Aristar,
Inc. and its subsidiaries, all of which are wholly-owned, are referred to
hereinafter as the "Company."

The Company is engaged primarily in the consumer financial services business
and its operations consist principally of a network of approximately 500
branch offices located in 23 states, primarily in the Southeast  and
Southwest.  These offices generally operate under the names Blazer Financial
Services, City Finance Company and First Community Financial Services.  The
Company makes  consumer installment loans and purchases retail installment
contracts from local retail establishments.  These consumer credit
transactions are primarily for personal, family or household purposes.  The
Company also engages in the industrial banking business through its
subsidiaries in Colorado and Utah.  In addition to making consumer installment
loans and purchasing retail installment contracts, these subsidiaries also
take customers' savings deposits.

Note 2 Summary of Significant Accounting Policies

Principles of Consolidation.   The consolidated financial statements include
the accounts of Aristar, Inc. and its subsidiaries, all of which are wholly-
owned, after elimination of all material intercompany balances and
transactions.  Certain amounts in prior years have been reclassified to
conform to the current year's presentation.

Estimates.  The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period.  Actual results could differ from those estimates.

Income Recognition from Finance Operations.   Unearned finance charges on all
types of consumer finance receivables are recognized on an accrual basis,
using the interest method.  Accrual generally is suspended when payments are
more than three months contractually overdue.  Loan fees and directly related
lending costs are deferred and amortized using the interest method over the
contractual life of the related receivables.  A portion of the Company's
retail installment contracts are "same as cash".  This provides a period
during which the customer is allowed to pay the account balance in full
without interest charges.  The Company recognizes interest income only on the
portion of these receivables which it estimates will not be paid in full
without interest charges.

<PAGE> 23


Provision and Allowance for Credit Losses.   The Company provides, through
charges to income, an allowance for losses which, based upon management's
evaluation of numerous factors, including current economic trends, loan
portfolio agings, historical loss experience and evaluation of collateral, is
deemed adequate to cover reasonably expected losses on outstanding
receivables.  The Company's consumer finance receivables are a large group of
smaller-balance homogenous loans that are collectively evaluated for
impairment.

Losses on receivables are charged to the allowance for credit losses based
upon the number of days delinquent or when collectibility becomes questionable
and the underlying collateral, if any, is considered insufficient to liquidate
the receivable balance.  Non-real estate secured delinquent receivables are
generally charged off when they are 180 days contractually delinquent (120
days prior to October 1, 1996).  Recoveries on previously written-off
receivables are credited to the allowance.

Investment Securities.   Debt and equity securities are classified as
available for sale and are reported at fair value, with unrealized gains and
losses excluded from earnings and reported, net of taxes, as a separate
component of stockholder's equity.  Gains and losses on investment securities
are recorded when realized on a specific identity basis.  Investment security
transactions are recorded using trade date accounting.

Property, Equipment and Leasehold Improvements.   Property, equipment and
leasehold improvements are stated at cost, net of accumulated depreciation and
amortization.  Depreciation and amortization are provided principally on the
straight-line method over the estimated useful life or, if less, the term of
the lease.

Deferred Charges.   Expenditures that are deferred are amortized over the
period benefited.  Amortization is computed principally using the straight-line
method.

Excess of Cost Over Equity of Companies Acquired.   The excess of cost over
the fair value of net assets of companies acquired is amortized on a straight-
line basis, generally over periods of up to 25 years.  The Company
periodically reviews intangibles to assess recoverability and impairment is
recognized in operations if permanent loss of value occurs.

Insurance Premiums and Acquisition Costs.   Insurance premiums are deferred
and subsequently amortized into revenue over the terms of the related
insurance contracts.  The methods of amortization used are pro rata, sum-of-the-
digits and a combination thereof.  Policy acquisition costs (principally
ceding commissions and premium taxes) are deferred and charged to expense over
the terms of the related policies in proportion to premium recognition.

Insurance Claims and Benefits Reserves.   Reserves for reported claims on
credit life and health insurance are established based upon standard actuarial
assumptions used in the insurance business for such purposes.  Claims reserves
for reported property and casualty insurance claims are based upon estimates
of costs and expenses to settle each claim.  Additional amounts of reserves,
based upon prior experience and insurance in force, are provided for each
class of insurance for claims which have been incurred but not reported as of
the balance sheet date.


<PAGE> 24


Income Taxes.   The Company is included in the consolidated Federal income tax
return filed by Washington Mutual.  Currently payable Federal income taxes
will be paid to Washington Mutual.  Federal income taxes are allocated between
Washington Mutual and its subsidiaries in proportion to the respective
contribution to consolidated income or loss.  Allocations for state income
taxes approximate the amount the Company would have paid on a separate entity
basis.  Deferred income taxes are provided on elements of income or expense
that are recognized in different periods for financial and tax reporting
purposes.

Taxes on income are determined by using the liability method as prescribed by
Statement of Financial Accounting Standards ("SFAS") No. 109, Accounting for
Income Taxes.  This approach requires the recognition of deferred tax
assets and liabilities for the expected future tax consequences of events that
have been recognized in the Company's financial statements or tax returns.  In
estimating future tax consequences, SFAS No. 109 requires the consideration of
all expected future events other than enactments of changes in the tax law or
rates.

Statement of Cash Flows.   For purposes of reporting cash flows, the Company
considers all highly liquid investments with a maturity of three months or
less when purchased to be cash equivalents.

Fair Value Disclosures.   Quoted market prices are used, where available, to
estimate the fair value of the Company's financial instruments.  Because no
quoted market prices exist for a significant portion of the Company's
financial instruments, fair value is estimated using comparable market prices
for similar instruments or using management's estimates of appropriate
discount rates and cash flows for the underlying asset or liability.  A change
in management's assumptions could significantly affect these estimates;
accordingly, the Company's fair value estimates are not necessarily indicative
of the value which would be realized upon disposition of the financial
instruments.

The following methods and assumptions were used by the Company in estimating
its fair value disclosures for financial instruments:

     Consumer finance receivables.   The approximate fair value of consumer
     finance receivables is estimated by discounting the future cash flows
     using current rates at which similar loans would be made with similar
     maturities to borrowers with similar credit ratings.  The fair value is
     not adjusted for the value of potential loan renewals from existing
     borrowers.

     Investment securities.   Fair values for investment securities are based
     on quoted market prices, where available.  If quoted market prices are
     not available, fair values are based on quoted market prices of
     comparable instruments.

     Debt.  The carrying amount reported in the statement of financial
     condition for short-term debt approximates its fair value given its
     brief maximum term.  The approximate fair value for long-term debt is
     estimated using rates currently available to the Company for debt with
     similar terms and remaining maturities.

<PAGE> 25

     Deposit liabilities.  The fair values disclosed for fixed-rate savings
     certificates of deposit are estimated using a discounted cash flow
     calculation that applies interest rates currently being offered on
     certificates to a schedule of aggregate expected maturities on time
     deposits.  The fair values disclosed for savings and money market
     accounts are, by definition, equal to the amount payable on demand at
     the reporting date.

Adoption of Recently Issued Accounting Standards.  SFAS No. 130, Reporting
Comprehensive Income was issued in June 1997 and requires businesses to disclose
comprehensive income and its components in their financial statements.  SFAS
No. 130 is effective for fiscal years beginning after December 15, 1997, and
is applicable to interim periods.  This statement will not affect the results
of operations or financial position of the Company.

SFAS No. 131, Disclosures About Segments of an Enterprise and Related
Information was issued in June 1997 and redefines how operating segments are
determined and requires disclosure of certain financial and descriptive
information about a company's operating segments.  SFAS No. 131 is effective
beginning January 1, 1998.  The statement will not affect the results of
operations or financial position of the Company.

Note 3 Transfers from Related Parties

On April 30, 1996, Great Western Bank, a Federal Savings Bank ("GWB"), then
also a wholly owned subsidiary of GWFC, transferred to the Company a portion
of its consumer finance business, hereinafter referred to as Great Western
Financial Services ("GWFS").  GWFS was comprised primarily of approximately
$242 million in net consumer finance receivables.  The Company paid fair value
(as determined by independent appraisal) of approximately $252 million in cash
raised through the issuance of commercial paper.  The Company accounted for
the approximate $10 million premium as a dividend to GWFC.  Additionally, at
the purchase date, the Company recorded a transfer to GWB of approximately $15
million, representing the accumulated earnings of GWFS at that date.

On December 31, 1996, GWFC transferred to the Company a portion of its
consumer banking business, hereinafter referred to as Blazer Financial
Corporation ("BFC").  BFC was comprised primarily of approximately $229
million in net consumer finance receivables and $147 million in customer
deposits.  The Company recorded, at the purchase date, a transfer to GWFC of
approximately $35 million, representing the accumulated earnings of BFC at
that time.

In accordance with Interpretation Number 39, "Transfers and Exchanges of
Companies under Common Control," to Accounting Principles Opinion Number 16,
"Business Combinations," both of the above-described acquisitions have been
accounted for in a manner similar to a pooling of interests.  Accordingly, the
assets acquired and liabilities assumed have been recorded at historical cost
and prior period financial statements of the Company have been restated for
the acquisitions.  Eliminations have been made for material intercompany
transactions between the combined entities.


<PAGE> 26

Note 4   Insurance Recovery

In May 1996, the Company filed a fidelity bond claim, subsequently paid by the
insurer, in the amount of $8.0 million for the recovery of fraudulently
over-billed marketing costs which had occurred over a number of years.  The $8.0
million recovery has been reflected as a reduction of other operating expenses
in the accompanying statement of operations and retained earnings for the year
ended December 31, 1996.

Note 5   Consumer Finance Receivables

Consumer finance receivables at December 31, 1997 and 1996 are summarized as
follows:
<TABLE>
<S>                                     <C>                   <C>
(Dollars in thousands)                            1997                 1996
Consumer finance receivables
 Real estate secured loans              $    1,094,061        $     994,097
 Other installment loans                     1,197,788            1,109,143
 Retail installment contracts                  362,373              400,530

  Gross consumer finance receivables         2,654,222            2,503,770
Less:  Unearned finance charges and
       deferred loan fees                     (344,819)            (317,867)
       Allowance for credit losses             (74,323)             (70,045)
Net consumer finance receivables        $    2,235,080        $   2,115,858
</TABLE>


The amount of gross nonaccruing consumer finance receivables included above
was approximately $50.9 million and $45.6 million at December 31, 1997 and
1996, respectively.


Contractual maturities, net of unearned finance charges and deferred loan
fees, at December 31, 1997 are as follows:
<TABLE>
<S>                           <C>           <C>          <C>        <C>
                                                Over 1
                                                   But
                                  Within        Within        Over
                                  1 year       5 years     5 years       Total
(Dollars in thousands)

Real estate secured loans     $  129,943    $  377,591   $ 463,518  $   971,052
Other installment loans          448,306       566,589         394    1,015,289
Retail installment contracts     123,810       199,065         187      323,062
                              $  702,059    $1,143,245   $ 464,099  $ 2,309,403
</TABLE>


<PAGE> 27

Consumer installment loans have maximum terms of 360 months, while retail
installment contracts have maximum terms of 60 months.  The weighted average
contractual term of all consumer finance receivables written during the years
ended December 31, 1997 and 1996 was 49 months and 50 months, respectively.
Experience has shown that a substantial portion of the consumer finance
receivables will be renewed or repaid prior to contractual maturity.
Therefore, the tabulation of contractual payments should not be regarded as a
forecast of future cash collections.  During the years ended December 31, 1997
and 1996, the ratio of principal cash collections to average net consumer
finance receivables outstanding was 59% and 63%, respectively.  The majority
of loans provide for a fixed rate of interest over the contractual life of the
loan.


The approximate fair value of the Company's consumer finance receivables  (net
of unearned finance charges and deferred loan fees) as of December 31, 1997
and 1996 follows:
<TABLE>
<S>                           <C>         <C>           <C>          <C>
(Dollars in thousands)                 1997                        1996
                                           Approximate               Approximate
                               Net Book       Fair         Net Book      Fair
                                 Value        Value         Value        Value

Real estate secured loans     $ 971,052   $   955,491   $   889,970  $  874,959
Other installment loans       1,015,289       972,488       929,977     908,762
Retail installment contracts    323,062       323,062       365,956     365,956
                             $2,309,403   $ 2,251,041   $ 2,185,903  $2,149,677

</TABLE>

Because the Company primarily lends to consumers, it did not have receivables
from any industry group that comprised 10 percent or more of total consumer
finance receivables at December 31, 1997.  Geographic diversification of
consumer finance receivables reduces the concentration of credit risk
associated with a recession in any one region.


<PAGE> 28

Activity in the Company's allowance for credit losses is as follows:
<TABLE>

                                           Year Ended December 31,
<S>                              <C>             <C>              <C>
(Dollars in thousands)                1997            1996             1995
Balance, January 1               $  70,045       $  55,568        $  53,217
Provision                           66,600          58,800           48,500
Amounts charged off
 Real estate secured loans          (1,292)         (1,582)          (1,324)
 Other installment loans           (64,460)        (50,086)         (51,208)
 Retail installment contracts      (13,946)        (10,947)         (11,404)
                                   (79,698)        (62,615)         (63,936)
Recoveries
 Real estate secured loans             556             442              590
 Other installment loans            11,538          12,892           12,543
 Retail installment contracts        2,553           2,863            2,924
                                    14,647          16,197           16,057
Net charge-offs                    (65,051)        (46,418)         (47,879)

Allowances on notes purchased        2,729           2,095            1,730
Balance, December 31             $  74,323       $  70,045        $  55,568
</TABLE>

During 1997, the Company reduced interest and fee income by the pre-tax amount
of $4.2 million, resulting from the revision of its estimate of interest
earnings on "same as cash" retail installment contracts.  "Same as cash"
contracts provide a period during which the customer is allowed to pay the
account balance in full with no interest charges.  The percentage of customers
exercising such option has been greater than originally estimated by the
Company, thereby requiring the above-described adjustment.

<PAGE> 29

Note 6   Investment Securities

Investment securities as of December 31, 1997 and 1996 are as follows:
<TABLE>
<S>                       <C>         <C>          <C>       <C>       <C>
(Dollars in thousands)                   December 31, 1997
                                                                     Approximate
                          Original    Amortized      Gross Unrealized      Fair
                            Cost        Cost        Gains     Losses      Value
Government obligations    $ 22,685    $  22,284    $  115    $   115   $ 22,284
Corporate obligations       98,875       98,316     1,180        266     99,230
Certificates of deposit
 and other                  34,905       32,917       186        142     32,961
                          $156,465    $ 153,517    $1,481    $   523  $ 154,475
</TABLE>


<TABLE>
<S>                      <C>          <C>          <C>       <C>         <C>
(Dollars in thousands)                    December 31, 1996
                                                                     Approximate
                         Original     Amortized      Gross Unrealized       Fair
                           Cost         Cost        Gains     Losses       Value
Government obligations   $ 19,628     $  19,513    $  110    $   175    $ 19,448
Corporate obligations      86,339        86,255     1,060        352      86,963
Certificates of deposit
 and other                 30,579        30,622       171        132      30,661
                         $136,546     $ 136,390    $1,341    $   659    $137,072
</TABLE>


There were no significant realized gains or losses during 1997 or 1996.

The following table presents the maturity of the investment securities at
December 31, 1997:
<TABLE>
<S>                                        <C>               <C>
(Dollars in thousands)
                                                             Approximate
                                            Amortized            Fair
                                               Cost             Value
Due in one year or less                    $   33,940        $   33,804
Due after one year through five years          71,191            71,711
Due after five years through ten years         43,519            44,091
Due after ten years                             4,867             4,869
                                           $  153,517        $  154,475
</TABLE>

<PAGE> 30


Note 7    Deferred Charges

Deferred charges, net of amortization, as of December 31, 1997 and 1996 are as
follows:

(Dollars in thousands)                        1997              1996

Long-term debt issue costs               $   5,195        $    4,711
Premiums on purchased accounts              19,309             7,245
                                         $  24,504        $   11,956

Amortization of  deferred charges for each of the last three years is as
follows:

(Dollars in thousands)                   1997            1996           1995

Long-term debt issue costs           $  2,468        $  1,616        $ 1,287
Premiums on purchased accounts          2,697           3,495          3,198



Note 8   Short-term Debt

Short-term debt at December 31, 1997 and 1996 consisted of commercial paper
notes.  Such debt outstanding at December 31, 1997 had been issued in the
minimum amount of $1,045,000 and with a maximum original term of 74 days.

The book value of short-term debt at December 31, 1997 approximates its
estimated fair value.

Additional information concerning total short-term borrowings is as follows:
<TABLE>
<S>                                <C>             <C>             <C>
                                       Year Ended December 31,
(Dollars in thousands)                   1997            1996            1995
Outstanding during the year
 Maximum amount at any month end   $  471,980      $  578,743      $  312,876
 Average amount                       406,992         391,936         210,684
 Weighted average interest rate           5.8%            5.2%            6.0%

Balance at end of year
 Amount                            $  357,532      $  398,006      $  312,876
 Weighted average interest rate           6.1%            5.7%            5.9%

</TABLE>
Weighted average interest rates include the effect of commitment fees.

<PAGE> 31

Short-term notes totaling $67 million and $66 million were issued in December,
1997 and 1996, respectively.  The proceeds of these notes were used to
purchase investment securities and were repaid through liquidation of these
securities in the month following issuance.  This short-term debt has been
reflected net of the securities balances in the accompanying Consolidated
Statements of Financial Condition.

In 1996, the Company entered into a $550 million revolving credit agreement
with several domestic and foreign banks.  The agreement, which replaced the
previous revolving credit agreement of $450 million, has a four-year term with
repayment in full of any balance outstanding in August, 2000.  This revolving
credit agreement has restrictive covenants as described further in Note 9.

There were no borrowings under any of the above-described revolving credit
agreements in 1997 or 1996.

On August 16, 1996, the Company obtained a revolving credit line of $2,685,000
from the Federal Home Loan Bank ("FHLB").  Under the revolving credit line,
which expired August 15, 1997, interest was payable monthly at FHLB's cash
management rate.  During 1997 and at December 31, 1996, there were no
outstanding borrowings under the line of credit.  Interest expense in 1996
related to the borrowings on the revolving credit line was approximately
$14,000.

<PAGE> 32

Note 9    Long-term Debt

Long-term debt at December 31, 1997 and 1996 was comprised of the following:
<TABLE>
<S>                                         <C>                <C>
(Dollars in thousands)                             1997              1996

   Senior Debentures and Notes
       7.375%, due February 15, 1997                           $    99,997
       8.125%, due December 1, 1997                                 99,909
       5.75%, due July 15, 1998             $   149,972            149,922
       7.875%, due February 15, 1999             99,947             99,904
       6.75%, due May 15, 1999                   99,992             99,986
       6.3%, due July 15, 2000                   99,949             99,931
       6.125%, due December 1, 2000             149,702            149,610
       7.75%, due June 15, 2001                 149,944            149,930
       7.25%, due June 15, 2001                  99,885             99,857
       6.75%, due August 15, 2001                99,933             99,917
       6.30%, due October 1, 2002               149,561
       6.50%, due November 15, 2003             149,320

         Total Senior Debt                    1,248,205          1,148,963

   Senior Subordinated Notes and Debentures
       8.875%, due August 15, 1998               99,979             99,948
       7.5%, due July 1, 1999                    99,788             99,659

         Total Senior Subordinated Debt         199,767            199,607

   Federal Home Loan Bank Notes
       4.98%, due December 3, 2001                                   4,200
       6.54%, due May 1,2001                     18,900
       5.39%, due June 3, 2002                    6,000

         Total Federal Home Loan Bank Notes      24,900              4,200

         Total Long-term Debt               $ 1,472,872        $ 1,352,770

</TABLE>


<PAGE> 33

Aggregate maturities at December 31, 1997 are as follows:
<TABLE>
<S>        <C>                  <C>                 <C>             <C>
(Dollars in thousands)
                                   Senior             Federal
                 Senior         Subordinated         Home Loan
                  Debt              Notes            Bank Notes          Total
1998       $    149,972         $     99,979                        $  249,951
1999            199,939               99,788                           299,727
2000            249,651                                                249,651
2001            349,762                             $    18,900        368,662
2002            149,561                                   6,000        155,561
2003            149,320                                                149,320
           $  1,248,205         $    199,767        $    24,900     $1,472,872

</TABLE>

The approximate fair value of the Company's long-term debt as of December 31,
1997 and 1996 is as follows:

(Dollars in thousands)
<TABLE>
                                1997                            1996
<S>                <C>            <C>             <C>             <C>
                         Book     Approximate           Book       Approximate
                         Value     Fair Value           Value       Fair Value
Senior debt        $ 1,248,205    $ 1,274,620     $ 1,148,963     $  1,192,141
Senior subordinated
  notes                199,767        204,114         199,607          215,083
Federal Home Loan
  Bank notes            24,900         24,913           4,200            4,200
                   $ 1,472,872    $ 1,503,647     $ 1,352,770     $  1,411,431

</TABLE>


On May 1, 1997, the Company obtained an adjustable rate advance from the FHLB
of Topeka in the amount of $21,500,000.  Under the credit agreement, which
matures May 1, 2001, interest is payable monthly and adjusts every seven days
to a rate equal to the FHLB's One Week Repo rate plus 10 basis points (6.54%
at December 31, 1997).  As a result of prepayments made in 1997, the
outstanding balance as of December 31, 1997 is $18,900,000.

On June 3, 1997, the Company obtained a putable advance from the FHLB of
Seattle in the amount of $6,000,000.  On a specified day each quarter, the
FHLB has the option to call the advance at par.  Under the credit agreements,
which matures June 3, 2002, interest is payable monthly and is determined
using a fixed annual interest rate of 5.39%.

Interest expense related to FHLB debt in 1997 and 1996 was approximately
$1,116,000 and $15,000 respectively.


<PAGE> 34


In March, 1995, the Company filed a $600 million shelf registration statement.
Under this registration statement, the Company issued in July, 1995, $100
million of 6.3% senior notes maturing July 15, 2000; in June, 1996, the
Company issued $100 million of 7.25% senior notes maturing June 15, 2001; in
July, 1996, the Company issued $100 million of 6.75% senior notes maturing May
15, 1999; in August, 1996, the Company issued $100 million of 6.75% senior
notes maturing August 15, 2001; and in December, 1996, the Company issued $150
million of 6.125% senior notes maturing December 1, 2000.  The respective
proceeds of these issues were used as follows: to reduce outstanding
commercial paper issued to pay $100 million of 8.55% senior notes at their
June 1, 1995 maturity; to reduce outstanding commercial paper issued to fund
the purchase  price of the Company's acquisition of GWFS as described in Note
3; to reduce outstanding commercial paper issued to pay $100 million of 6.25%
senior notes at their July 15, 1996 maturity;  to reduce outstanding
commercial paper; and, to fund the purchase price of the Company's acquisition
of BFC as described in Note 3, to repay approximately $69.6 million of
outstanding intercompany indebtedness owed by BFC and its subsidiaries to GWB,
and for general corporate purposes.

In June, 1997, the Company filed an $800 million shelf registration statement.
Under this registration statement, the Company issued in October, 1997, $150
million of 6.3% senior notes maturing October 1, 2002; and, in November, 1997,
$150 million of 6.5% senior notes maturing November 15, 2003.  The proceeds of
these issues were used to reduce borrowings of the Company (including
outstanding commercial paper) and for general corporate purposes.

Provisions of certain of the Company's debt agreements restrict the payment of
dividends to a maximum prescribed proportion of cumulative earnings and
contributed capital and provide for the maintenance of minimum levels of
equity and maximum leverage ratios.  At December 31, 1997, approximately $23
million was available under the debt agreement restriction for future
dividends.

<PAGE> 35

Note 10   Customer Deposits

The net book value and approximate fair value of the Company's customer
deposits as of December 31, 1997 and 1996 are as follows:
<TABLE>
(Dollars in thousands)
                                    1997                          1996
<S>                     <C>            <C>            <C>           <C>
                             Book     Approximate          Book   Approximate
                            Value      Fair Value         Value    Fair Value
Certificates of deposit
 $100,000 and over      $  12,768      $   12,820     $  10,674     $  10,714
Certificates of deposit
 under $100,000           133,041         133,373       117,588       117,943
Savings accounts            1,493           1,493         1,534         1,534
Money market accounts      15,883          15,883        16,342        16,342
                        $ 163,185      $  163,569     $ 146,138     $ 146,533

</TABLE>

Maturities of time deposits are $98,421,000 in 1998, $33,975,000 in 1999,
$7,131,000 in 2000 and $6,282,000 thereafter.

Note 11    Income Taxes

The components of income tax expense are as follows:
<TABLE>
<S>                      <C>              <C>               <C>
                                         Year Ended December 31,

(Dollars in thousands)        1997             1996              1995

Currently payable
 Federal                 $  28,567        $  44,871         $  35,739
 State                       5,237            8,317             6,719
Deferred                    (4,060)         (16,188)              (13)
                         $  29,744        $  37,000         $  42,445
</TABLE>


<PAGE> 36


The provisions for income taxes differ from the amounts determined by
multiplying pretax income by the statutory Federal income tax rate of 35% for
1997, 1996 and 1995.  A reconciliation between these amounts is as follows:
<TABLE>
<S>                                 <C>            <C>             <C>
                                              Year Ended December 31,
(Dollars in thousands)                   1997           1996            1995

Income taxes at statutory rates     $  26,611      $  34,831       $  37,709
Increase (reduction) in taxes
 resulting from:
 State income taxes, net of
  Federal benefit                       2,972          5,406           4,367
 Other                                    161         (3,237)            369
                                    $  29,744      $  37,000       $  42,445
</TABLE>

Deferred taxes result from temporary differences in the recognition of certain
items for tax and financial reporting purposes.  Deferred tax liabilities
(assets) are comprised of the following:

<TABLE>
<S>                                    <C>              <C>
                                                December 31,
(Dollars in thousands)                       1997             1996

Amortization of intangibles            $    9,537       $   11,606
Employee benefits accruals                  2,338            2,335
Depreciation                                   86              426
Loan interest and fee income                3,173            3,374
Other deferred income items                 1,389              378

Total deferred tax liabilities             16,523           18,119

Credit loss reserves                      (26,391)         (24,788)
Unearned insurance commissions             (4,700)          (3,956)
Other miscellaneous accruals               (2,099)          (2,598)
State taxes                                (4,100)          (4,076)
Other deferred deduction items             (3,655)          (3,181)

Total deferred tax assets                 (40,945)         (38,599)

Net deferred tax asset                $   (24,422)      $  (20,480)
</TABLE>

<PAGE> 37


Note 12   Net Insurance Operations and Other Income

Net insurance operations and other income is comprised as follows:
<TABLE>
<S>                                    <C>           <C>            <C>
                                                 Year Ended December 31,
(Dollars in thousands)                       1997          1996          1995

Premium and commission income          $   37,422    $   36,691     $  37,448
Claims, ceding fees and other expenses    (15,627)      (14,335)      (14,774)
Net Insurance                              21,795        22,356        22,674

Other Income                                4,760         4,849         6,561

                                       $   26,555    $   27,205     $  29,235

</TABLE>


Note 13   Retirement and Savings Plans

Substantially all of the Company's employees participate in a noncontibutory
defined contribution pension plan maintained by Washington Mutual.  Accumulated
plan benefits and annual pension cost are derived from an allocation formula
based on the Company's total participants and the Plan's total participants.

Pension cost for the Company's participants for the years ended December 31,
1997, 1996, and 1995 was $(150,000), $490,000 and $1,455,000, respectively.
Due to the Company's participation in a multi-employer defined benefit plan,
information as to separate Company participant assets and vested benefits is
not presented.

The Company's employees also participate in an employee savings plan maintained
by Washington Mutual, which allows employees to defer part of their pretax
compensation until retirement.  Company contributions for the years disclosed
equaled 50% of the contributions made by employees up to 6% plus annual
discretionary amounts, if any, as determined by management.  The Company's
cost is based on the actual contribution related to its participating employees.
Total expense was $1,034,000, $1,360,000 and $1,161,000 for the years ended
December 31, 1997, 1996 and 1995, respectively.

The Company's employees who retired prior to July 1, 1997 also participate in
GWFC's defined benefit postretirement plans which cover a portion of the costs
of medical and life insurance coverage to eligible employees and dependents
based on age and length of service.  Medical coverage options are the same as
available to active employees.  The accumulated postretirement benefit
obligation and related expense are derived from an allocation formula based on
the Company's total participants and the Plan's total participants.

The net postretirement medical and life insurance expense allocated to the
Company for the years ended December 31, 1997, 1996 and 1995 were $358,000,
$521,000 and $532,000, respectively.


<PAGE> 38


Note 14  Leases

At December 31, 1997, the Company was lessee of office space, principally for
loan offices, computer and other office equipment and automobiles, generally
for terms of five or fewer years.
The Company has no material capital leases.  Under operating leases that have
initial or remaining noncancelable lease terms in excess of one year,
approximate aggregate annual minimum rentals are $7,576,000 in 1998;
$5,402,000 in 1999; $2,730,000 in 2000; $1,375,000 in 2001; and $576,000 in
2002.  Rent expense for the years ended December 31, 1997, 1996 and 1995 was
$10,804,000, $9,975,000, and $9,274,000, respectively.

Note 15  Contingencies

The Company and certain of its subsidiaries are parties to various lawsuits
and proceedings arising in the ordinary course of business.  The Company has
also been named as a defendant in a number of class action suits, in which
various industry-wide practices arising from routine business activities are
being challenged and various damages are being sought.  Certain of these
lawsuits and proceedings arise in jurisdictions, such as Alabama, that permit
damage awards disproportionate to the actual economic damages incurred.  Based
upon information presently available, the Company believes that the total
amounts that will ultimately be paid, if any, arising from these lawsuits and
proceedings will not have a material adverse effect on the Company's
consolidated results of operations and financial position.  However, it should
be noted that the frequency of large damage awards, including large punitive
damage awards, that bear little or no relation to actual economic damages
incurred by plaintiffs in jurisdictions like Alabama continues to increase and
creates the  potential for an unpredictable judgment in any give suit.

Note 16  Transactions with Related Parties

Significant transactions with Washington Mutual or its subsidiaries in
addition to those described in Note 3 are identified as follows:

   Washington Mutual Bank FA, another subsidiary of Washington
   Mutual, provided the Company with certain administrative
   services, including human resources and cash management, for
   which the Company paid management fees of $1,900,000 in
   1997, $1,770,000 in 1996 and $1,358,000 in 1995.

   The Company made payments to Washington Mutual pursuant to a
   tax allocation policy and in connection with the retirement
   and savings plans.

<PAGE> 39



Note 17   Approximate Fair Values of Financial Instruments

A summary of the approximate fair values of the Company's financial instruments,
as compared to their carrying values, is set forth in the following table:
<TABLE>
<S>                                  <C>          <C>            <C>          <C>
(Dollars in thousands)
                                        December 31, 1997            December 31, 1996
                                      Carrying   Approximate       Carrying  Approximate
                                       Value      Fair Value        Value     Fair Value
Consumer finance receivables Note 5  $2,309,403   $2,251,041     $2,185,903   $2,149,677
Investment securities        Note 6     153,517      154,475        136,390      137,072
Short-term debt              Note 8     357,532      357,532        398,006      398,006
Long-term debt               Note 9   1,472,872    1,503,647      1,352,770    1,411,431
Customer deposits            Note 10    163,185      163,569        146,138      146,533

</TABLE>

See Note 2 and the referenced Notes for additional information.


Note 18   Selected Quarterly Financial Data (Unaudited)

A summary of the quarterly results of operations for the years ended
December 31, 1997 and 1996 is set forth below:
<TABLE>
<S>                      <C>       <C>         <C>       <C>         <C>       <C>          <C>        <C>
                                                   Quarter Ended
                              March 31,              June 30,           September 30,          December 31,
(Dollars in thousands)       1997      1996        1997      1996        1997      1996         1997       1996
Revenue                  $ 99,723  $102,688    $100,836  $ 99,806    $ 97,991  $ 99,605     $107,978   $104,603

Interest and other
expenses                   66,298    64,756      63,654    53,931      64,746    63,314       69,199     66,383

Provision for credit
 losses                    15,400    14,500      15,600    13,600      16,200    15,300       19,400     15,400

Total expenses             81,698    79,256      79,254    67,531      80,946    78,614       88,599     81,783

Income before taxes        18,025    23,432      21,582    32,275      17,045    20,991       19,379     22,820

Income tax provision        7,100     9,200       8,500    12,800       6,800     8,200        7,344      6,800

Net income              $  10,925  $ 14,232    $ 13,082  $ 19,475    $ 10,245  $ 12,791    $  12,035   $ 16,020

</TABLE>

<PAGE> 40




Item 9.    Changes in and Disagreements with Accountants
           on Accounting and Financial Disclosure.

           None.

                             PART IV

Item 14.   Exhibits, Financial Statement Schedules and Reports on Form 8-K.

(a)  Index of Documents filed as a part of this Report:

 1.  Financial Statements

     Included in Part II of this Report:
                                                                     PAGE

     Reports of Independent Certified Public Accountants . . . . . . . 17

     Aristar, Inc. and Subsidiaries:
      Consolidated Statements of Financial Condition
      at December 31, 1997 and 1996. . . . . . . . . . . . . . . . . . 19
      Consolidated Statements of Operations and Retained Earnings
      for the Years Ended December 31, 1997, 1996 and 1995 . . . . . . 20
      Consolidated Statements of Cash Flows
      for the Years Ended December 31, 1997, 1996 and 1995 . . . . . . 21
      Notes to Consolidated Financial Statements . . . . . . . . . . . 22

 2.  Financial Statement Schedules

     All schedules are omitted because of the absence of the
     conditions under which they are required or because the required
     information is set forth in the financial statements or related
     notes.

 3.  Exhibits

     Included in Part IV of this Report:

         Exhibit
          Number

    (2) (a)  Agreement dated as of April 30, 1996, between Great Western
             Bank and First Community Financial Services, Inc. (1)
        (b)  Amendment to Exhibit (2) (a) dated as of August 31, 1996.(2)
        (c)  Agreement dated as of April 30, 1996, between Great Western
             Bank and Blazer Financial Services, Inc. (1)
        (d)  Amendment to Exhibit (2) (c) dated as of August 31, 1996.(2)

<PAGE> 41

        (e)  Agreement dated as of April 30, 1996, between Great Western
             Bank and Blazer Financial Services, Inc. of Florida. (1)
        (f)  Amendment to Exhibit (2) (e) dated as of August 31, 1996.(2)
        (g)  Agreement dated as of December 31, 1996, between Great
             Western Financial Corporation and Aristar, Inc. (3)
    (3) (a)  Certificate of Incorporation of Aristar, Inc. as presently
             in effect.(4)
        (b)  By-Laws of Aristar, Inc. as presently in effect.(4)

    (4) (a)  Indenture dated as of July 15, 1984, between
             Aristar, Inc. and Bank of Montreal Trust
             Company, as trustee.(5)
        (b)  First supplemental indenture to Exhibit (4)(a) dated as of
             June 1, 1987.(5)
        (c)  Indenture dated as of August 15, 1988 between Aristar, Inc.
             and Bank of Montreal Trust Company, as trustee.(6)
        (d)  Indenture dated as of May 1, 1991 between Aristar, Inc.
             and Security Pacific National Bank, as trustee.(7)
        (e)  Indenture dated as of May 1, 1991 between Aristar, Inc.
             and The First National Bank of Boston, as trustee. (7)
        (f)  Indenture dated as of October 1, 1997 between Aristar, Inc.
             and First Union National Bank, as trustee. (8)
        (g)  Indenture dated as of November 15,1997 between Aristar, Inc.
             and First Union National Bank, as trustee. (9)
        (h)  The registrant hereby agrees to furnish the Securities and
             Exchange Commission upon request with copies of all
             instruments defining rights of holders of long-term debt
             of Aristar and its consolidated subsidiaries.

    (10)   Income Tax Allocation Agreement dated as of December 15, 1995
           between Aristar, Inc. and Great Western Financial Corporation. (10)

    (12)   Statement Re: Computation of Ratios.

    (23)   Consents of Independent Certified Public Accountants.

    (24)   Power of Attorney included on Page 43 of the Form 10-K.

    (27)   Financial Data Schedule.


<PAGE> 42

        (1)  Incorporated by reference to Registrant's
             Quarterly Report on Form 10-Q for the quarter
             ended March 31, 1996, Commission file number
             1-3521.
        (2)  Incorporated by reference to Registrant's
             Quarterly Report on Form 10-Q for the quarter
             ended September 30, 1996, Commission file
             number 1-3521.
        (3)  Incorporated by reference to Registrant's
             Current Report on Form 8-K dated December 31,
             1996, Commission file number 1-3521.
        (4)  Incorporated by reference to Registrant's
             Annual Report on Form 10-K for the year ended
             December 31, 1987, Commission file number 1-3521.
        (5)  Incorporated by reference to Registrant's
             Current Report on Form 8-K dated May 29,
             1991, Commission file number 1-3521.
        (6)  Incorporated by reference to Registrant's
             Current Report on Form 8-K dated June
             24,1992, Commission file number 1-3521.
        (7)  Incorporated by reference to Registrant's
             Quarterly Report on Form 10-Q for the quarter
             ended June 30, 1995, Commission file number
             1-3521.
        (8)  Incorporated by reference to Registrant's
             Current Report on Form 8-K dated October 6,
             1997, Commission file number 1-3521.
        (9)  Incorporated by reference to Registrant's
             Report on Form 424B2 dated November 6, 1997,
             Commission file number 1-3521.
        (10) Incorporated by reference to Registrant's
             Annual Report on Form 10-K for the year ended
             December 31, 1995, Commission file number 1-3521.

    (b) Reports on Form 8-K

        On October 8, 1997, the Company filed a Current Report on
        Form 8-K, dated October 6, 1997, disclosing, under item
        (7) thereof, the terms of the issuance of $150,000,000
        aggregate principal amount of its 6.3% senior notes
        maturing October 1, 2002.





<PAGE> 43




                               SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.

ARISTAR, INC.

By    /s/ James R. Hillsman                              March 31, 1998
James R. Hillsman, Senior Vice President                 Date
and Deputy Chief Financial Officer
(Principal Accounting Officer)



                            POWER OF ATTORNEY

Each person whose signature appears below hereby authorizes James R. Hillsman
as attorney-in-fact to sign on his behalf as an individual and in every
capacity stated below, and to file all amendments to the registrant's Form 10-K,
and the registrant hereby confers like authority to sign and file in its behalf.

Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities indicated on March 31, 1998.

/s/ Craig E. Tall
Craig E. Tall, President and Director
(Principal Executive Officer)


/s/ Fay L. Chapman
Fay L. Chapman, Director


/s/ Wayne L. Evans
Wayne L. Evans, Director


/s/ James B. Fitzgerald
James B. Fitzgerald, Director


/s/ William A. Longbrake
William A. Longbrake, Director