Many Americans are starting to feel the pinch of rising gas prices. It is having a direct effect on living standards and expenses. Gas prices nationwide are reaching prices that have not been seen in 25 years. As a result, it is forcing consumers to spend more money on gas, which leaves less money for other living expenses. The average gas price nationwide as of March 5, 2006, was $2.92/gallon; this is up $1.19/gallon from March 23, 2004.
This increase means that in a little over two years, most Americans are spending 50% more on gasoline then they had been in the past. This leaves the average consumer with a lot less disposable income to spend on their bills and living expenses. As a result, many people are unable to pay as much as they used to on other debts like credit cards.
In addition to eating into the monthly budget, the rising fuel costs are causing increased debt. People are spending more on gas and can not afford other living expenses like food, clothes, dining out, entertaining, etc... Instead of paying cash for these things, people have to use credit cards and then must try to figure out a way to pay for the credit card later.
The outlook doesn't look especially positive either despite a recent leveling off of prices. The gas shortage only looks to continue as facilities remain closed in the Gulf of Mexico and conflicts in Africa lead to a shortage of available fuel.
Conclusion
If you are feeling the pinch from increased fuel costs and you would like to talk to an attorney about your options, give us a call at 888.743.5787 or fill out our free legal evaluation form.
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