AICCCA Says For Many Consumers Servicing Debt
is a Larger Monthly Expense Than Gasoline
Fairfax, VA - May 21, 2008 — The weekly, sometimes daily increase in the price of gasoline has many consumers concerned about having enough money to fill their tanks. News reports on the average cost of a gallon of gas and how it is affecting consumers provide the situation top of the mind awareness. The Association of Independent Consumer Credit Counseling Agencies (AICCCA) encourages consumers to have the same awareness of the cost of servicing their revolving debt.
"If they were to do the math, many consumers would find they are paying more in monthly minimum payments and interest charges on their credit card debt than they are to fill their gas tanks" said David Jones, AICCCA president. "One reason the sharp increase in the price of gasoline has had such a dramatic affect on consumers is that many of them are carrying a large debt load and don't have enough disposable income for any increased expense."
As an example, the average credit card debt in America is $8,500. To make the minimum payment and average interest charges at 12 percent the monthly payment would be approximately $340. At today's average price per gallon of $3.79 that amount would purchase 90 gallons of gas.
To help, AICCCA offers these tips to lessen the impact of increased gasoline prices:
Stop adding to your credit card balances. Don't make a bad situation worse by filling up your tank with gas and charging it to your high balance credit card.
Cut other expenses and drive less to cover the increase in gas prices. The goal is to avoid adding to credit card balances. Do what is necessary to have the cash in place to meet your gasoline needs.
Start regular saving. It may seem counter-productive to add an expense, in this case paying yourself, to an already stretched budget, but the only way to end relying on credit is to save money. Start small and increase the amount as you can.
Get budgeting help from a qualified credit counselor. You can find an AICCCA member by calling 866-703- TRUST-AICCCA (866-703-8787) or visiting www.aiccca.org.
Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call 866-703-TRUSTAICCCA (866-703-8787) or visit www.aiccca.org.
