It was about 5 months ago that oil prices set a record $147 per barrel. Today, they’re less than $45, thanks to reduced demand. Meanwhile, gas prices fell from a painful $4 a gallon to around $1.66 in the U.S. (And some analysts think they’re heading to one dollar per gallon.) Credit Counselors advise that energy prices should boost the economy in 2009 as opposed to crippling it in 2008. JPMorgan Chase economist James Glassman estimates that the drop in oil prices represents “a boost equivalent to a $350 billion stimulus.”

Falling faster than gas prices are mortgage rates. Rates for a 30-year, fixed-rate mortgage fell to an extremely low 5.19. That should help housing affordability and the ability of current homeowners to refinance their mortgages. Before refinancing your home, it is a good idea to pull your credit report to make sure there are no mistakes on it. And even more good news could be on the way if you don’t mind Uncle Sam borrowing billions more for yet another bailout: The Treasury Department is reportedly considering a plan to push mortgage rates as low as 4.5% for new homebuyers and, perhaps, even for current homeowners who want to refinance. Maybe there is some light to the end of this long, dark tunnel.

Credit Counselors urge you to take charge of your holiday spending plan! By planning ahead, you can celebrate the season in style without ending up in credit card debt. Here are ways to limit spending and stay on track.
• First, make a holiday spending plan. Make sure you include all holiday spending like extra postage, decorations, children’s holiday outfits, entertainment costs and family photos.
• Next, list everyone you want to buy presents for. It helps to write down any ideas you may have for gifts while creating this list.
• The earlier you start shopping, the better. Take care of everyone on that you have to ship to first so you can get those presents out early. Shipping rates increase as the holidays approach so the sooner you ship, the more you will save.
• Shop online. The internet makes it easy to shop around. It also makes it harder to buy on impulse. Since most retailers have inventory on their websites, you can decide exactly what you want to buy before going to the mall. This does not mean charge everything! Credit Counselors advise you to use a debit card with a major card label on it in place of a credit card.
• Combine gifts. If you and your sibling never know what to get your parents, combine your resources and get them one nice item together.
• Get the family together and draw names from a hat. This is helpful because each person is only in charge of one present.
• Have your children list one to three items they want. A good rule to follow is one gift they really need, one gift they really want and one educational gift like interactive computer games or books. They will probably receive plenty of other gifts from friends and family so don’t worry about them not getting enough.
• Shop the sales all though the year. You will find great bargains in your major wholesale retailer’s clearance aisle (especially on electronics).
• Be creative. It doesn’t cost much to make up coupons for things like a free foot rub, an offer to do the dishes for a week, a special movie night, or an offer to paint or rearrange the furniture. You could even make a coupon book, one for each month.
• Get ready for after Christmas sales. The stores are anxious to sell and will discount decorations, wrap, gifts, toys, trees and other holiday items at huge savings. You can stock up on dishes, napkins, food items and even clothing at up to 90% discounts. You can often find gifts for other holidays as well, like birthdays, Mother’s Day, and even Valentine’s Day.
Always remember that you should only spend what you have set aside for the holidays. If you ever find yourself thinking about using a credit card or taking money out of savings to purchase a Christmas gift because you do not have the money remember to stop, think and save. If you consistently find yourself up to your eyeballs in debt after the holidays, you may want to speak to a Certified Credit Counselor for some free educational materials or budgeting advice. Spend wisely this holiday season and have a merry Christmas!