Wednesday, June 9, 2004

Don’t let increased gas prices break your budget The summer driving season is upon us and the price of gas continues to rise. The average price for a gallon of gas is now $2.07. A recent Gallup poll reports that 47 percent of adults say gas prices have already caused them financial hardship. Even those not immediately affected expect to be impacted this summer. “For families on a tight budget, the extra $8 to $10 it now takes to gas up a car is money they may not have,” said Suzanne Boas, president of Consumer Credit Counseling Service of Atlanta. “These families will need to cut expenses in other areas to avoid financial problems due to the increase in gas prices.” To help, CCCS provides the following tips to avoid breaking your budget: • Determine how much you are spending on gas each month. Track your gasoline expenses for a month. Use cash or one credit card to simplify the process. Then, calculate how much more you are spending than what you have spent previously and what you have allocated in your budget. • Trim expenses where necessary. You may find you are spending as much as $100 a month more due to the increase in gas prices. That money has to come from somewhere. Avoid using credit to purchase gas if you are unable to pay off the balance at the end of the month. Instead, cut out enough extras from your budget to cover the additional expense. • Combine trips and carpool. To help conserve fuel, combine several errands in one trip. Also, contact co-workers and neighbors to set up a carpool. For those planning summer driving trips, CCCS offers the following tips: • Drive the most fuel-efficient car. The farther you can drive on a tank of gas, the better, particularly if you are traveling more than 100 miles at one stretch. A vehicle that has a 16-gallon tank and gets 10 miles per gallon more than your other vehicle would mean you could drive 160 miles farther before you would need to purchase more gas. • Plan a shorter trip or stay where you are once you arrive. While gas prices remain high, consider traveling closer to home or limiting car trips once you arrive at your destination. Rather than driving your own car, use mass transit to visit the sites.