Print

Email story

Comment

Letter to the editor

Gas prices are keeping us close by

We asked: How have higher gas prices affected you? Have you changed your driving patterns?

By Helen Huntley, Times Personal Finance Editor
Published November 25, 2007

We asked

How have higher gas prices affected you? Have you changed your driving patterns?

As a small business owner, it has affected me greatly. I have employees that I reimburse for gas and have noticed a significant increase in my operating costs. If this continues, I will be forced to pass these costs onto the customer.

Michael Dash, Hudson

Regardless of price fluctuations, my consumption remains very stable. I take steps to ensure the best fuel efficiency when driving, such as having proper tire inflation, keeping the engine tuned and performing all scheduled maintenance.

Michel Curi Jr., Seminole

I will definitely reconsider some longer day trips that I had wanted to make in the near future. Since everything, not just gasoline, has gone up in price in the last year or two, the rising gas prices are just about "the last straw," making longer trips very expensive.

Margit Crowell, Spring Hill

There is not much more I can do short of buying a hybrid or similar car, but the payback period for a hybrid is still unacceptably long, even at today's gas prices. I try to incorporate everyday errands into my daily commute and I use www.tampagasprices.com to find low prices on or near my commute route.

Chas. E. Lehnert, Riverview

The days of driving across town for a dollar coupon are over.

Marv Bachman, Clearwater

You asked

I am unemployed and looking for work. Money is getting tight and I may have to withdraw living expenses from my IRA soon. I have an outstanding Visa balance of $11,404 at 7.75 percent. Would it be prudent for me to pay off my credit card bill with my home equity line of credit? Although the rate is higher 8.75 percent, I would lower my monthly payment and the interest would become tax deductible.

A better course of action would be to use the home equity credit line to pay your monthly Visa bill. Tapping it to help pay other living expenses also would be a reasonable alternative to taking IRA withdrawals, especially if you are younger than 591/2 and would incur a 10 percent penalty on IRA withdrawals.

Paying off credit card debt with a home equity loan is putting your home at risk. If you had to, you could eliminate credit card debt through bankruptcy. Once you're back at work, strive to pay down your home equity and credit card debt.

Next week's question: How are you saving for retirement? Do you have a goal and do you expect to reach it?

To ask a question, make a comment or answer the Money Question of Week, e-mail hhuntley@sptimes.com or write Helen Huntley, P.O. Box 1121, St. Petersburg, FL 33731. Visit her MoneyTalk blog (blogs.tampabay.com/money) for more money information.

[Last modified November 23, 2007, 19:27:29]