Gas prices are high and consumers are feeling the pinch at the pump. With gas prices nearing $4.00 per gallon, credit counselors are urging you to save gas whenever possible.

You can try the following methods to maximize a tank of gas:

• Consolidate your errands and do whatever possible to limit your daily driving.
• Avoid aggressive driving. Rapid acceleration, speeding and hard braking wastes gas. It can lower your gas mileage by 33 percent at highway speeds and by 5 percent around town.
• Don’t drive over the speed limit. According to experts, you can assume that each five miles per hour (mph) you drive over 60 mph is like paying an additional twenty cents a gallon for gas.
• In households where more than one vehicle is available, when possible make sure you choose the car that gets better gas mileage.
• Limit you car’s idle running time.
• Don’t use premium gas unless your car manufacturer requires it.
• You should also take a look in your trunk. Carting a lot of unneeded items around can cost you. An extra hundred pounds in your vehicle could reduce your mpg by two percent, depending on the size of your vehicle.
• Keep your vehicle maintained. Your car’s spark plugs, air filter, fuel injectors, tires and brakes can reduce gas mileage if they are not properly maintained.

Not only will some of these steps increase your gas mileage, but also they will help to make the roads a safer place.

Credit counselors warn not to charge your gas if you cannot pay off your card every month. This might seem like a temporary solution, but paying interest on already high gas prices is costly.

During hard times, you may find yourself in a position where you may have to face possibly foreclosing on your home. Foreclosure prevention counselors advise that this has become a very common situation for many Americans these days and unfortunately, it has caused a new trend among scam-artists.

Beware of foreclosure rescue scams! There are many fraudulent organizations posing as legitimate foreclosure prevention organizations. They claim they can save your home and further claim they have successfully been helping clients for many years. In many cases, the homeowners who respond to these con artists usually end up losing their home, resulting in the con artist walking away and pocketing the equity.

Always use caution when searching for companies which claim to provide foreclosure assistance. Do not work with an agency who:

• Asks for an up-front fee before providing you with any services.
• Tells you to send a mortgage payment to them (you should never send payments to anyone other than your lender).
• Asks you to sign your house deed over to them.
• Is pushy or rushes you into filling out and signing loads of paperwork.
• Guarantees they can save your home before reviewing your situation.
• Cannot clearly explain the steps to be taken to save your home.

On the other hand, there are many agencies that can truly help you save your home. If you decide to go with a foreclosure prevention agency, housing counselors advise you to carefully research the company. Look for a reputable agency which does the following:

• Offers a free initial consultation to go over your unique situation.
• Takes the time to fully explain the process.
• Shows an honest success rate and does not claim to be 100% successful.
• Is registered with the Better Business Bureau and has a good record with them (click here to visit the Better Business Bureau).
Although it may be difficult to make sound decisions due to stress while facing a foreclosure, it is important to use extreme caution! Housing counselors advise that picking the right agency can make the difference between saving and losing your home.

When it comes to budgeting, credit counselors often advise to plan ahead.

There are many costs that are not necessarily considered monthly expenses that you may be forgetting to include in your monthly budget such as car maintenance (including city and plate license), car insurance, school clothes, school supplies, insurance premiums and taxes. These costs might only come up one to four times yearly. These may be large one-time expenses that may not be included in your balanced budget, which is why it is important to start saving now. To budget for such accounts, take the total estimated cost per year, divide it by 12 and set aside that amount monthly so you are ready or in a better financial position to pay them when they are due.

Then there are unexpected costs that may come up immediately such as car repairs, medical bills, and home repairs. These are more difficult to estimate, but equally important. In the event these saved funds are not needed, you can apply this to a high interest credit card.

If your budget allows, it is a good idea that you prepare for unexpected costs and loss of income. Credit counselors advise that you have three to six months of income set aside in an emergency fund.

If you have had trouble saving up for an emergency fund, you may want to consider putting away this year’s tax return. In addition, don’t forget about that extra stimulus refund you may be receiving later this year. It might be tempting to spend that extra money right away, but you may want to consider saving it. Credit counselors advise that the absence of an emergency fund can be a critical financial error and you will be thankful it is there if it is needed.

It is still possible to obtain a credit card, even with bad credit. If your are in this situation, you will most likely have to pay more and your card’s terms may be more inflexible than those of the average credit card owner. If you still owe bad debts, call a credit counselor and he/she should be able to give you the advice you need to begin building a better credit history.

It is hard enough to obtain credit if you have a bad credit history, and can be just as hard to get credit if you don’t have any credit history at all! If you are trying to establish a credit history for the first time or you have made mistakes in the past and are trying to rebuild your credit history, there is still hope!

Credit counselors advise that you first try applying for a credit card through a credit union, they usually offer the best rates for people with damaged or no credit. The best rates are obviously offered to those with high credit ratings. You will find that the further away from perfect your credit rating is, the worse your finance charges, fees and credit limit will be.

Be careful that you don’t obtain a higher credit limit than you can handle. This could cause your credit-building attempt to fail. If you can afford more, apply that money towards getting out of other types of debt. This will improve your debt-to-credit ratio, which should improve your credit score.

Don’t lose focus of your non-credit-card bills. There is almost no point in paying off your new credit card if you fail to pay your mortgage, car payment or utility bills. If you think you need help in developing a budget, call a credit counselor!

It is also important that you do not apply for every credit card you see. Every time you apply for credit, it can be seen by other creditors on your credit report. Take your time and do your research to find out where you will most likely be approved.

Keep in mind that you may not be able to get a credit card anywhere on your own. If this is the case, you may need to find a relative or friend willing to co-sign for the card but be aware that if you do not pay on time every month, you will damage the co-signer’s credit as well as your own.

You may want to consider opening a secured credit card as another option. This is done by putting your own money into a savings account, which acts as the credit line for your credit card. For instance, you put $1,000.00 into your secured account and your credit line could be as much as $1,000.00 (some secured accounts can have fees). Credit counselors advise you to visit www.bankrate.com for a listing of the best secured credit cards. This is reported just like an unsecured credit card and shows creditors your ability to handle credit. Eventually, your bank may extend your line of credit beyond what you have put in, which may help you reach a status to where you no longer need a secured credit card.

Are you planning to apply for credit? Consider checking your credit report first.

Know that when applying for a credit card or a major purchase like a mortgage, the contents of your credit report will determine how much it will cost you if approved. When considering your application, your lender will be checking with one (or all) of the three major credit bureaus: Transunion, Experian and Equifax. Credit counselors advise that it is always a good idea to review your credit report and correct any errors before applying for any type of credit.

Mistakes made in the past can ruin your chances of obtaining credit.

If you’ve made financial mistakes in the past, your potential lenders will see them on your credit report. Knowing what is on your credit report is the first step in cleaning up bad marks from the past. Most experts say over 30% of all credit reports contain erroneous information.

Monitor your credit report for free.

You are entitled to one free credit report per year from each of the three major credit bureaus. To obtain your credit report free online, visit www.annualcreditreport.com. You may also request your free credit report by phone at 877-322-8228 or by writing your request to: Annual Credit Report Service, P.O. Box 105281, Atlanta, GA, 30348-5281. Credit counselors advise that there are many businesses claiming to be the free credit report provider that end up charging their clients fees. You do not need to provide a credit card number to obtain your free credit report.

Why is my credit score so important?

Credit scores are used for so many things like applying for credit cards, mortgages, loans, and can even be considered by certain employers while screening their applicants for employment. While there is no absolute answer to what a lender will consider a good score, it has been observed by credit counseling agencies that individuals with credit scores in the 700 plus range get the best interest rates and credit limits.

How is my credit score calculated?

Your credit score is figured using data from five categories, which include payment history, amounts owed, length of credit history, new credit and types of credit used. Your score changes on a daily basis and is calculated at the time the score is requested.

What does my credit score represent?

This gives lenders a good idea of your likelihood of repaying a debt. A good credit score may save you thousands on financed purchases like a home or car. For example, an individual paying a 30-year $300,000.00 mortgage with a credit score of 620 might qualify for an interest rate of 7.256%, while an individual with a credit score of 720 might qualify for an interest rate of 6.162%. At first glance, it would seem that the interest rates are not largely different however; the individual with the 620 credit score would be paying $2,047.00 per month, while the individual with the 720 credit score would be paying $1,830.00. That’s a difference of $217.00 per month!

What do I do if I have a low credit score?

Paying your bills on time each month will start rebuilding your credit right away. If you have accounts with missed payments, try to make them up and keep them current.

Keep the balance of your credit cards low. You can lose points off your score if you carry a balance in excess of 50% of your credit limit.

Don’t cancel your credit cards! A large part (around one third) of your score is based on how much credit is available to you. Closing accounts may instantly decrease the amount of credit you have available changing key credit available vs. credit owed ratios. Credit counselors advise instead, you put the credit cards away or destroy the card but keep the account open. Closing cards may also cause a loss of credit history, further lowering your score.

Even though your credit score is something that you may not fully understand, there are many things that you can do on a daily basis to maintain this very important number. It is your responsibility to make sure that the information on your credit report that determines your credit score is correct. Visit www.annualcreditreport.com for a free copy of your credit report from each of the free major credit bureaus.

It’s official! Our government has approved tax rebates that we can expect to start seeing around late May to early June. Those who are single, with no children, can expect around $600.00 and married couples with children can expect about $1,200.00 plus an additional $300.00 per child. Credit counseling agencies are urging their clients to spend their money wisely.

Here are some suggestions to stimulate the economy if you decide to use this extra money as it is intended:

• Are you currently spending money every day on expensive coffee? Investing in a gourmet coffee maker should save you in the long run if you use it instead of purchasing a $3.00 cup of coffee from Starbucks or Caribou everyday.
• If you go out to the movies frequently, invest in a home theater system and watch movies at home instead of going to the movie theater.
• Home improvements are another good investment and could help to lower your utility bills if you purchase new windows or insulation.
• With gasoline prices at an all-time high, perhaps getting some vehicle maintenance done will improve your car’s performance, which should improve gas mileage.

Credit counselors also suggest saving your money or reducing debt as an option.

• Always pay off credit cards with high interest rates first. The idea is to pay down debt that could increase due to fees and high finance charges.
• Deposit the money for an emergency fund. Credit counselors suggest having at least 3 months worth of saved income set aside for emergencies.
• Start a college fund. This is an opportune time to start a college fund, especially since you may be receiving an additional $300.00 per child.
• Have you started saving for retirement? If not, this is a perfect time to start, especially if your employer offers something like a 401(k) plan that matches a part of your contribution.

Opportunities like this are not likely to be offered again so we should make sure we make the most of this one-time payment from the government. Credit counselors warn that there are scams already out there. As always, be careful anytime someone asks for personal information like bank account info or your social security number as the IRS has announced that they will not be contacting you for this information through email or telephone. If you receive a questionable e-mail, do not open it! Be sure to forward any questionable e-mails to phishing@irs.gov.

Sure, we’re all looking forward to our tax returns this year but would you be willing to pay a triple-digit interest rate to get your own money about 10 days earlier? Well any credit counselor will tell you, that’s exactly what you will be doing if you take out a Refund Anticipation Loan or RAL.

Many of the advertisements that you see that claim to be “Instant Refunds” or “Rapid Refunds” are really RALs and are mainly targeted to those with lower incomes. If you are struggling financially but are still thinking you might need to take out a Refund Anticipation Loan, ask yourself this first: “Why would I pay someone to loan me my own money?”

Don’t give a large chunk of your hard-earned cash to someone else to get your tax refund a few days earlier than you would if you file with the IRS directly. Most credit counselors advise it pays to be patient and wait for just a few more days. You can try speeding up the process by filing your tax return electronically with E-file or have your tax return sent directly to your bank account with direct deposit.

You may also want to consider reducing the amount of taxes withheld from your paycheck but it is highly recommended that you see a tax professional before doing so. This may enable you to put more money in your pocket each pay period, rather than receiving a large refund at the end of the year. This may prevent you from relying so heavily on your tax return in the first place.

If that isn’t enough to sway you from taking out a Refund Anticipation Loan, credit counselors warn: this is a loan that must be repaid. If your refund is denied, delayed or if your return is smaller than expected, you will still be expected to pay the loan back. If you are unable to pay, the lender might send you to collections, hurting your credit as a result.

Bottom line: Refund Anticipation Loans just aren’t worth it!

It’s a new year once again! Every January you get a fresh start. This is the time of year to put yourself to the test. So what is your New Year’s resolution this year? Whether you want to lose 15 pounds or to stop smoking, have you considered it might be so hard to stick to your resolution because of holiday debt? Are those holiday credit card bills pouring in on a daily basis tempting you to maybe light up a cigarette or eat a half gallon of ice cream resulting in another failed New Year’s resolution? Maybe your New Year’s resolution should be to avoid accumulating holiday credit card debt again this year.

Don’t let those holiday bills get out of control!

All of that holiday debt will not go away if you avoid opening your credit card statements. If anything, you should get ahead of the game by checking your bank and credit card accounts online before your bills even come. Don’t ignore your bills! You could incur late fees, which may cost you up to $40.00 and your interest rates could increase up to 30% annually. Avoid this by making sure you at least pay the minimum amount on each card and mail it out the same day it arrives if possible. Furthermore, be aware that your credit card companies watch how you pay your other credit cards. If your card company sees you are late paying on another credit card, they could increase your interest rate, so paying at least the minimum on all your accounts is paramount.

Stop using your credit cards!

By using cash, debit and checks (provided your checkbook is balanced), you won’t be adding to the problem of accumulating additional debt. If you can’t resist using plastic, try putting your cards in a lockbox. If that doesn’t work, a more creative approach is to freeze those cards in a block of ice so you can’t get to them, the thaw time may help control impulse buying.

Set a goal.

You need to set a realistic timeframe to eliminate your holiday debt. By paying off your cards with the highest interest rates first, you will pay less towards interest and eliminate that holiday debt faster.

Don’t let this happen again next year!

Start saving now for the next holiday season. Free up some money by cutting out expenses like Starbucks coffee; try watching TV instead of going out to the movies and bring your own lunch to work. You can use this money saved to start a Christmas club account by setting aside $25.00 to $100.00 each month so you don’t burden yourself with holiday debt next year.

If you have joined the over 40 million Americans (according to Forrester Research) who have joined the 21st Century and ventured into the world of online banking, congratulations! For those of you who haven’t – let’s talk…

Traditional “brick and mortars” with high overhead costs can’t compete with a virtual bank when it comes to interest rates. If you’re shopping, you’ll be lucky to find an interest rate for a savings account at a traditional financial institution collecting even 1% annually. Compare this to the 4% - 5% interest from virtual savings accounts and you’ll see the significant difference. A balance of just $5000 could mean an extra $250 per year in interest.

You’re thinking, “There must be lots of restrictions and high minimum balances requirements,” right? Wrong. In many cases you have the same access to your funds as with traditional accounts with the same minimum balances.

Bottom Line: As with any opportunity, it won’t be for everyone. If you’re not internet savvy, if you haven’t dug your way out of debt to even begin your emergency fund savings, or if you’re lack of close relationships encourages you to know your bank teller by name, then internet savings might not be for you. Review your options with your current financial institution and make an informed decision based on what’s right for your individual financial goals.