Americans are paying more at the pump. How to plan for higher prices

‍Outlet: USA Today
Author: Faith Wakefield

Key Takeaway

When gas prices rise, essential transportation costs can leave less money for other bills. Updating your budget to reflect those costs can help you identify a shortfall before it turns into ongoing credit card debt.

Michael McAuliffe Discusses the Impact on Commuters

Family Credit Management President Michael McAuliffe contributed to a USA Today article exploring how households can prepare for higher fuel costs.

McAuliffe highlighted the challenges facing people with long commutes and limited transportation alternatives:

“The households I worry about the most are the ones with long, non-negotiable commutes” -Michael McAuliffe, President, Family Credit Management, in USA Today

The article includes perspectives from several financial professionals on adjusting spending, managing fuel costs and protecting financial priorities.

Make Room for What Your Commute Actually Costs

For someone who needs a car to get to work, higher gas prices can be difficult to absorb. A budget that worked a few months ago may no longer cover the same everyday expenses.

Start by comparing your recent fuel spending with what you previously paid. Use that difference to estimate the additional amount your monthly budget needs to cover.

For example, if you’re spending $15 more per fill-up and filling up four times a month, that’s an extra $60 to account for. Having a specific number makes it easier to decide which adjustments could realistically help.

Watch for a Growing Credit Card Balance

Paying for gas with a credit card becomes more expensive when you carry the balance and incur interest. If you’re regularly charging essentials because your income no longer covers your expenses, it’s time to review the full budget.

Look at how transportation, housing, groceries and debt payments fit together. If you’ve already reduced optional spending and still can’t cover the essentials, another small spending cut may not solve the problem.

Our credit card payoff calculator can help you understand how your current balance, interest rate and payment affect your repayment timeline. You can also explore options for lowering credit card interest rates.

Get Help When Debt Payments Leave Too Little for Essentials

Nonprofit credit counseling can help you review your income, expenses and debt to understand your options.

For eligible consumers, Family Credit Management’s Debt Management Program may reduce interest rates and combine participating debts into one monthly payment. A counselor can help determine whether the program fits your situation.

Read the Full USA Today Article

Read Faith Wakefield’s article for additional perspectives on managing fuel expenses and preparing for price fluctuations:

Americans are paying more at the pump. How to plan for higher prices

Struggling to cover everyday expenses while keeping up with credit card payments? Contact Family Credit Management to review your budget and explore your options.