If you have noticed that gas prices are lower than they have been in a long time, you have noticed right. USA TODAY reported that gas prices are 41 percent lower than when they reached an all-time high in July 2008, even with the recent increases.
In July 2008, gas prices topped out at $4.11 and many people speculated that they would soon reach the $5 mark. But today, the American Automobile Association reports that the price is now just $2.42.
When filling up a 16-gallon tank, which is found in larger cars, that amounts to savings of $27.04 on every fill-up. A February survey by Allstate and The National Journal found that 78 percent of the 1,000 adults polled said they had saved money at the gas pump.
So what are Americans doing with all of the money that they are saving at the pump? The survey found the people are largely using the savings to pay off debt and buy essentials like groceries.
USA TODAY reported that the lower gas prices have the biggest effect on lower income people who are able to use the savings on necessities that they wouldn’t otherwise be able to afford.
Lower income people who relied heavily on credit cards during the recession are also using the savings to pay down debt, USA TODAY reported.
If you are one of the many Americans who is using your savings at the pump to pay down debt, tune in to our next post, which will address which debts to tackle first and other tips for getting out of debt.
