MMI Warns Gas Prices Can Fuel Financial Problems

HOUSTON--Aug. 2, 20055, 2005--According to the American Automobile Association (AAA), the current average price for gas is $2.58 a gallon, significantly higher than last year's average - $1.86 a gallon. The government's Energy Information Administration says this has been the largest increase in gas prices in decades. Every part of the country has experienced at least a 10 cents a gallon increase in prices, with some as high as 20 cents.

With finances already tight from summer vacations and back to school preparations, and with the holidays just ahead, it is necessary to make wise choices concerning your gas usage. Financial experts offer the following suggestions to help you get the most out of your fill up:

Search for the best price. Gas prices can vary from one area of town to another. Visit www.gaspricewatch.com to compare gas prices. Many drivers don't realize that all gas companies share the same refineries in order to comply with federal regulations, so it makes more sense to purchase the cheaper option rather than staying loyal to a particular brand. But don't use gas while driving to a further gas station just to save a couple of cents.

Be smart at the pump. According to AAA, gas is gas. Don't be fooled by the words "premium" or "superior" grades, as neither of these types gives you better mileage or more power. Check your owner's manual and if it does not require premium grade gas, then regular unleaded will do.

Drive sensibly. Excessive speed and a lot of accelerating and breaking can waste gas. According to CNN Money, it can lower your gas mileage by 33 percent when driving at highway speeds and by 5 percent when cruising around town.

Consolidate Trips. To cut down on driving, find a location where you can take care of grocery shopping, dry cleaning, banking and other daily errands in one convenient location.

Routinely maintain your vehicle. Get your car checked out to make sure all systems are running smoothly, that spark plugs and sensors are replaced on time, and tire inflation is where it should be. If any of these things are not maintained, your vehicle will use more gas because it has to work harder.

Look into alternatives. Research other methods of transportation, including carpooling, traveling by bus or subway. Or if you own more than one vehicle, drive the more energy-conserving vehicle as often as possible.

Don't abuse credit. While purchasing gas on a credit card might be a tempting option, if you don't pay off the balance each month, you will be incurring a high interest fee for that gas, making it even more expensive than it already is.

"Even though it doesn't seem like there is an end in sight to the increases, there are still things you can do to save money," said Kelly Rote, communications manager for MMI. "For more information on how to make wise financial choices, visit www.moneymanagement.org for educational resources to achieving financial freedom."

About Money Management International

Money Management International (MMI) is a non-profit, full-service credit counseling agency, providing confidential financial guidance, financial education, counseling and debt management assistance to consumers since 1958. MMI helps consumers trim their expenses, develop a spending plan and repay debts. Counseling is available by appointment in branch offices and 24/7 by telephone and Internet. Services are available in English or Spanish. To learn more, call 800-762-2271 or visit www.moneymanagement.org.