Puppy Housebreaking Problem

I need potty training help!  My puppy will not use her puppy housebreaking pad consistently if there are any area rugs around for her to use instead. She ruined the rug under my dining room table! We pulled it up and got rid of it and she's using her puppy pad now 99% of the time.  She'll use clothes too if they're left on the floor - bathroom towels too - so I have to be extra vigilant behind the kids when they leave a trail of clothing and towels after showers or else there are 3" piddle spots on clothing.

I sure hope I can eventually have area rugs in my living and dining room again.  I wish she was a little bigger and could go outside with the rest of the dogs but we can't risk a coyote or hawk getting to the little 3 lb. bundle.  She's a bit on the high-maintenance side.