The Credit Counseling Professionals

To Sip, or to Guzzle

ACCC helps you decide whether you should trade in your gas-guzzler

Rising gas prices are driving consumers to curb their SUV’s and take the wheel of more fuel-efficient cars, but is this the right move? Many people think only about their immediate cost at the pump, and forget about the long-term effects. Trade-in value, driving habits, how much is owed on a car loan; these should all be considered before deciding to sell a used SUV.

The first tip is not to sell a car after less than 3 years of driving it. This is the time when a vehicle depreciates the most, losing 40 - 50% of its original value. A car can be used for a few more years, and still retain nearly as much value. SUVs in particular are quickly depreciating in value (8% in the last 6 months on average). Still, trading in the gas-guzzler may not save money. The gas may still be expensive, but it’s better in the long-run to get the most value out of the vehicle while being able to drive it for twice as long. It’s also important to know that the savings may not be immediate. For most, trading an SUV for a compact will cost more right now, but balance out years later.

Here is an example: A consumer trades in a four-year old GMC Yukon, worth $17,314, for a new $24,076 Toyota Prius. The difference is $6,712. If the consumer drives 1,200 miles per month and gas costs $3.74 per gallon (national average), the monthly fuel savings will be $249.74. At this rate, it will take 27 months to pay back the additional cost of the Prius over the trade-in value of the Yukon, and start saving money from the lower fuel price.

Buying a small, fuel-efficient car is an excellent way to combat rising gas prices, but the sticker price is what dents your wallet. The average price of a compact car has increased by $2,532 since 2004. That’s nearly double the average price increase of all other cars. Right now is the worst time to sell an SUV, and also the worst time to purchase a compact car. Every situation is different and it may take some time to see the savings, but consumers must weigh all of the factors and compare all of the costs before making a change.

Good Times with Short Money

Impress a new friend with these fun and inexpensive date ideas

Everyday life is getting pretty expensive as it is. On top of that, you just got yourself a hot date. So, you want to impress your new flame without burning through all your cash? The credit counseling professionals at ACCC have some great ideas for having a good time without emptying your pockets.

1. How about a picnic in the park or at the beach? Yes, it’s a cliché but everyone secretly loves doing it. Gather up your favorite snacks, some good wine, and find a nice spot to sit and enjoy. Take it one step further and look up your local parks, amphitheaters, and other outdoor venues. There’s a good chance that you can find some free outdoor concerts and plays, particularly in the warm weather.
2. Speaking of parks, why not get some exercise? Take your date bike riding, rollerblading, or hiking for an afternoon. Take a nature walk in the woods or on the beach. Bring a camera and have some fun “striking a pose.” You can save money, get to know your new friend, and get in shape.
3. With a little research you can find a lot of fun free things to do in your area. A simple online search can reveal free or discount days at local museums and art galleries. Newspapers and local weeklies are also great resources for free event listings. Check the entertainment section.
4. Show your softer side by bringing your date to do some volunteer work. Are you passionate about a particular cause or charity? Prove it to your date. Volunteer at a hospital, an animal shelter, a charity event, or help spruce up your community by cleaning or gardening. Whatever piques your interest.

On inexpensive dates like these you can have tons of fun and build great memories, all without having to worry about how much you’re spending.

Save at the Supermarket

ACCC offers tips to save money on your groceries

Food is more expensive than ever, and ACCC has discovered some excellent ways to help you save money on your next trip to the grocery store. Use these tips, and you won’t need any coupons. Although, we still recommend using them whenever appropriate.

1. Don’t buy pre-cut, pre-made, or prepared meals. It is far less expensive to buy the ingredients and make the meal yourself. Pull out a knife and chop the meat and vegetables yourself.
2. Try the store brands. It may be just as good or even more to your liking than the national brands. Often times, one factory will produce the same product for more than one company. The only difference is the label and the price.
3. Make a grocery list that fits your budget. You should always have a plan for grocery shopping. Don’t wander around the store for ideas of what to buy. Make a list, stick to it, and don’t shop on an empty stomach.
4. Try another store. The grocery store might not always have the best deals. Check out drug stores for deals on milk, bread, soda, snacks, and paper products.
5. Buying in bulk can save money, but only buy as much as you’ll actually eat. There’s no point in buying two gallons of orange juice if the second gallon expires before you even open it. Buying in bulk is better if the item can be frozen, like meat. This way you won’t have to worry about the waste, just freeze it for later.
6. Why buy two when you only need one? If you see an item priced “2 for $5,” you don’t always have to buy two. Usually you can just buy one for $2.50. The same goes for “10 for $10” deals. You can buy three for $3.00 if you want to.
7. Join the rewards program or members club for any area grocery stores. It’s usually free, and you’ll have access to discounts every day. The good prices and sales are often reserved for those who are members.

With these tips you can save money, eat well, and minimize waste.

Cut Your Carbon Footprint & Save Cash at the Same Time

ACCC offers consumers advice on how to reduce their environmental impact while saving money

Rising food and fuel prices are putting financial pressure on American families all across the country. Many consumers need to consider alternative methods for saving, just to scrape by. Everyday consumers hear more and more about global warming and the need to reduce their carbon footprint. For consumers already struggling to make payments, buying a new super fuel-efficient vehicle is out of the question. But what if consumers could eliminate the need to rely on fuel altogether? Here are some advantages to using alternative forms of transportation, provided by the credit counseling professionals at American Consumer Credit Counseling (ACCC):

Save Money

Taking public transportation can eliminate car expenses including: gas, maintenance, insurance, parking, and car payments. For every dollar earned, the average household spends 18 cents on transportation. The average family could save more than $6,000 annually by taking public transit. According to the American Automobile Association, the total annual cost of driving a mid-sized sedan 15,000 miles (just above the U.S. average) is nearly $8,000.

Save Time & Energy

According to the Texas Transportation Institute, the average American will spend 38 hours per year in traffic, that’s almost a full work week! This translates to 26 extra gallons of gas and $710 per person. Each year, public transportation use in the U.S. saves 1.4 billion gallons of gasoline. This represents almost 4 million gallons of gasoline per day. Public Transportation also allows passengers to relax, or do something productive with the time that would normally be wasted during their commute.

Stay Fit & Avoid the Rush

For people who live close enough to their work place, there is always the option of riding a bike or walking. This eliminates the reliance on fuel, the hassle of the pesky morning and evening rush, and allows for a great way to stay fit.

Commuters who opt out of the daily drive will be doing their full part to reduce carbon emissions, no matter what form of alternative transportation they use.

10 Myths About Saving Money On Gasoline

By Jeffrey Strain

With gasoline prices nearing record levels, many drivers are trying to adopt ways to reduce the amount of gas their car uses. That's a noble goal, but don't fall for some common myths that, in some cases, will end up costing you money.

Here are 10 gas-saving myths that you should know to make sure you are truly saving money on gas, rather than putting money, time and effort into something that won't work:

1. Products claiming to increase gas mileage: The Federal Trade Commission has tested more than 100 devices that claim to save gas -- some up to 25% -- and found not one that significantly improves gas mileage as claimed. In fact, the FTC found that some may actually damage the car's engine. You can also see the test results of such devices by the Environmental Protection Agency. Consumer Reports has also tested numerous products over the years that make the improved-mileage claim and haven't found any that actually work.
2. Turn off the AC: This is the classic debate that will keep people arguing for hours. According to a Consumer Reports test, there is very little difference between driving with your windows down or with the air conditioner on at 65 mph on the highway. Edmunds came to a similar conclusion.
3. Buy gas on Wednesday: The theory is that if you buy gas on Wednesday, prices have come down from the weekend, when many gas stations elevate their prices in hopes of making a bit more profit from more people traveling. While a general rule would be to avoid buying on weekends, there are too many factors that come into play to rely on the Wednesday strategy. You are much better off looking at what gas stations are charging in your area through sites like AAA's fuel price check, GasBuddy or Gas Price Watch to find the best price on a daily basis.
4. Idle away: At one time, this may have been true, but with modern fuel-injection technology, it's no longer the case. Just as there is no longer a need to spend 10 minutes warming up your car on a cold morning, if you are going to be sitting for more than a half minute, you will save more gas by turning the engine off than letting it continue to run.
5. Sticker stats: The rating that automakers provide for gas mileage should be taken with a grain of salt. Beginning with 2008 vehicle models, the Environmental Protection Agency required fuel efficiency standards to be reported based on new test methods that better reflect actual driving conditions. Older models, however, may have derived their ratings via outdated or inaccurate methods. While differences in manufacturer-devised MPG ratings will indicate one car is more fuel efficient than another, that is about all you can deduct from this number. You are better off looking at real-world mileage tests from Edmunds and Consumer Reports if you want a good idea of what gas mileage your car will really get.
6. Up your octane: A higher grade of gas is not necessarily better for your car. Some higher-performance car engines need a higher octane level, which refers simply to how much the fuel can be compressed before it ignites. It's a myth that higher-octane fuel burns hotter and cleaner, and it will not improve an ordinary car's gas mileage. Your driver's manual will list the recommended level of octane, which will usually be the lowest.
7. Gas rebate cards save money: This is one of those areas where you need to be very careful. On the face of things, getting a 3% to 5% rebate each time you purchase gas looks like a no-brainer, but this is not always the case. If you don't pay off the card in full each month, any savings on gas will immediately be taken away with interest charges. Some gas cards may come with yearly fees that can negate any savings. There also may be less expensive gas in your area that doesn't allow a credit card to be used. Run the numbers before assuming that a gas credit card will save money.
8. Buy a fuel-efficient car: Many people believe that the best way to save gas is to purchase a fuel efficient car. While this will help, the truth is that the best way to save money on gas is to change your driving habits. Making basic changes to your driving habits will save you a lot more money than changing to a fuel efficient car without changing your habits. Getting a fuel efficient car on top of changing your habits will be even a bigger bonus.
9. Gas up in the morning: This myth is based on the science that gas is denser when it is cool out than in the heat of the day. The logic goes that purchasing gas in the morning, when it is cool, will mean you get more in your tank than if you buy it in the heat of the afternoon, because gas pumps measure volume and not density of the fuel. The problem is that the gas is stored in underground tanks, so the heat of the day has little effect on the gas temperature, meaning you can purchase gas at any time and get virtually the same amount.

   But there is one reason you might want to buy gas in the morning. If you believe gas prices are going to be rising, most gas stations don't change their daily price until 8 a.m. or so, meaning you still can get the previous day's price in the early morning.

10. Overinflated tires will save gas: The logic is that if underinflated tires waste gas and properly inflated tires get better mileage because of less tread contact on the road, over inflated tires would have even less tread contact, which would increase mileage. Popular Mechanics tested this theory and found that it didn't provide any added benefit and that it was dangerous.

Increasing your fuel efficiency as much as possible is sensible, but make sure that you don't buy into the myths that can be dangerous and siphon your wallet.

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