As you are likely aware, household costs have increased tremendously since last year. Gas is up 21%, food 5%, and home energy 9%. Credit counseling agencies have been giving their clients some tips for saving on those daily living expenses.

Make a shopping list. Researchers find that making a shopping list and sticking to it will help limit impulse buying. Also, never shop while hungry or tired or you may fall to temptation. Your grocery store should have a list of goods that will be going on sale in the upcoming week. You can also subscribe to thegrocerygame.com, which will reveal sales that aren’t advertised yet. Stock up on the best deals!

Check for air leaks in your home. Use caulk, weather stripping and spray foam to seal leaks in areas like around windows and doors. Adding insulation can also save on your heating and cooling bills. Increase your heating and air conditioning unit’s efficiency by changing air filters every three months. Credit Counselors advise to save on electricity by changing your light bulbs over to fluorescent compacts as they burn out. Some appliances use electricity when you aren’t using them. Devices with standby power like TVs, stereos and DVD players should be plugged into a power strip so you can turn them off all at once.

Make sure you aren’t spending on needless costs. If you have a credit card and have always paid on time but it has a high interest rate, try getting it lowered because you have been a good customer. You can try a similar approach with your insurance company but instead, shop around and see if you can get a lower premium. If you don’t use all of your cell phone minutes, change your cell plan.

If you need budget help, most non-profit Credit Counselors would be happy to assist you at no charge.

First of all, reverse mortgages are not meant for everyone and according to Housing Counselors, should not be used unless it’s a necessity.

Essentially, this loan is borrowed against your home’s equity and is paid out in a lump sum or in monthly installments to the homeowners. The amount of a reverse mortgage that a homeowner can qualify for depends on factors such as the age of the youngest homeowner (the older that person is, the more they will qualify for), and the home’s equity-value. A major problem that can arise while applying for a reverse mortgage is that both homeowners may not be over 62. Housing Counselors warn that there have been cases where the younger homeowner takes their name off the mortgage so that they can qualify for more money. This is not recommended because the younger homeowner may lose the home if the older owner dies.

Factors considered for a reverse mortgage include, you are 62 or older and have equity built up in your home. This type of loan is very costly and should only be used if you are home rich but cash poor or are struggling to meet your monthly expenses. It is not recommended that you take out a reverse mortgage for gifts or vacation. A reverse mortgage may be more necessary to help with the rising costs of food, drugs and other household expenses that according to a study taken by AARP, has contributed to a surge of bankruptcy filings by the elderly. This study found that from 1991 to 2007, there was an increase of filings equaling 125% for people aged 65-74 and 433% for people aged 75-84.

While reverse mortgages can help out certain people in certain situations, Housing Counselors advise to look into other options such as a home-equity loan before taking into account this very expensive type of loan.