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Gas prices are causing financial hardship according to the Experian-Gallup Personal Credit IndexSM survey for the second quarter (April, May and June) of 2006. Lower income consumers are most affected, followed by those in the middle income bracket. Uh, duh.  I am not knocking the survey, but I think most of us are feeling the pain at the pump and it’s logical that those with less cash to spare are hurting the most. It’s so bad that investigators in Southern California uncovered an arson ring torching gas-guzzling SUV’s! I don’t think most of us have really absorbed the fact that what we are experiencing isn’t some short-term blip in the price of gas. Last year, after Hurricane Katrina, everyone in my Florida community panicked after hearing a rumor that no gas would be available for seven days. We lined up and I paid (gasp!) $3.10 for premium grade, which was the only gasoline available. Now I am almost paying that for regular grade. But this time, I am not counting on prices dropping much soon, if at all. Some breakthrough or development might eventually make us less dependent on gasoline to fuel our rides, but I personally don’t expect to be filling up on vegetable oil or driving a solar powered car in the near future. It seems almost pointless to offer tips for saving money on gasoline at this point. Yes, you might be able to save a few dollars, and if you want reliable road-tested strategies for improving mileage, then I recommend you read Edmunds.com real-world tested tips. But saving a few dollars on gasoline isn’t going to make a huge difference for most of us. I could also rail against the oil industry, the lack of mass transportation in many communites and what not. But it won&39;t solve the problem in the short term. What I&39;ve seen, and what many credit counselors have been saying for years, is that many consumers with financial problems are paying far too much for their vehicles when compared to their income.  With five-year car loans becoming the norm, it is also easy to be "upside down," owing more than your car is worth. So here are the real questions to start asking yourself when it comes to your choice in vehicles: 1.    How will you adjust your budget to account for current gasoline prices? Can you afford to pay the higher prices on an ongoing basis? If not, then what will you do to make up the gap? (Earn more, spend less somewhere else, or both?). 2.    Do you really know how much it costs to own and operate each of your vehicles? Have you sat down and figure the total monthly cost including fuel, the loan payment, insurance and a realistic estimate for maintenance and repairs? 3.    How much money do you have to earn each month to pay for each car or truck you own? If you are not sure what tax bracket you are in, then multiply the figure you came up with in question 2 by 20% (or 1.20) and use that as a rough estimate. Then figure out how many hours you have to work to earn that much. 4.    Finally, is it worth it? I am just like anyone else when it comes to justifying expenses (that will be the subject of another post), but this one may hit you squarely between the eyeballs. After this exercise, you may discover you just can’t justify the cost of one or more of your vehicles and need to downsize. If you still need transportation and a bus, bicycle, motorcycle or taxi isn’t feasible for your locale or schedule, then you may want to look for an auto that is less expensive to operate. I like Edmunds.com True Cost to Ownsm calculator, a far more useful tool than just calculating a monthly payment. How are you coping with the high price of gasoline? In the Experian, more than half of survey respondents said they are: Decreasing drivingCutting back on heating/air conditioningCutting back on vacationingSpending less on eating out andReducing savings How about you? Share your comments with us below! 

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