I just came from the corner Chevron station, where I put $20 worth of gas in my car. As little as 3 months ago, that would have filled over half my tank – maybe even as much as ¾s full. This morning? Barely a quarter of a tank. What the f? How is that supposed to last me even a week?
Paying $4.20 for a gallon of gas is absurd; I’m already dreading thinking about gas prices in southern California in the summer. There used to be a time when I didn’t really have to factor gas money into my monthly budget — $20 a couple of times a month was all I needed to get me pretty much anywhere I needed to go.
These days, I actually have to factor gas money in alongside groceries and other bills I have to pay. This makes saving money to pay off my many other bills that much more of a hassle. Honestly though, I probably wouldn’t mind it too much if not for a credit card bill that demands my attention every month, and it seems I’m not alone on this.
Many Americans have financial situations similar to my own: a little bit of debt that’s manageable on its own, but with the rising cost of gas starting to demand a good chunk their budget, that minor debt is slowly turning into a monster.
I mentioned that I paid over $4 per gallon for gas in SoCal, and the rest of the country isn’t far behind that price point. I saw a story on ABC News last night, stating that the average price of gas had climbed to $3.89/gallon, and we aren’t even in the “driving busy season” yet.
In total, gas prices are 32% higher now than they were a year ago and continue to skyrocket; Americans are paying roughly $340 million more per day than they were this time last year. And that’s factoring in the many consumers like me, who are cutting their gas expenses back.
Now for the good news
Believe it or not, there is a shiny side to this coin. All of these doom and gloom predictions may have a small amount of truth buried beneath the hyperbole, but there is a bit of opportunity to be found here.
As supply and demand begins to dry up for not just gas, but cars and even housing as well (it’s not like those markets are in any better shape), prices will begin to drop as well, which could open the door to some real bargains you might not have normally had available to you.
In the opinion of MyCreditGroup, now would be the perfect time to start doing all you can to get your finances back under your control, including your major credit and debt accounts. People with higher-than-average credit scores and pristine credit reports always have the best chances at getting a house, car, or new line of credit at better rates than those who don’t.
If you start putting work in now to fix your credit score, you could ensure that you’re among the lucky few who actually come out ahead of this crisis. At least you’ll be able to afford a full(er) tank of gas.
This is a guest post from John LeBlanc, writer for MyCreditGroup, a leading credit services company.
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