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Many consumers are turning to personal loans as they try to fight their way through the recession. Although some items are lower in pricing, there are other items that are impervious to the bad economy. Here is a list of items that consumers will need to stretch their budgets to afford.
- Postage stamps continue to increase in price. At 44¢, the price of sending a first-class piece of mail is higher than ever. The latest increase is the third increase since 2006. In addition, if a consumer wants to send a large envelope the cost is now 88¢, up from 83¢ and a parcel under one ounce is $1.22 up from $1.17. Despite pricing hikes, the USPS is still netting a $2.3 billion loss, as compared with their $35 million loss just one year ago. The crux of their problems, the agency claims, is the recession and lost revenues to email.
- College tuition is another area that is steadily rising in cost despite the faltering economy. Since prices were recorded, colleges and universities raise tuition yearly. Most learning institutions are charging a 5% higher tuition this year. Even two-year programs are higher than normal due to the recession.
- Ice cream is another product that is creeping up in pricing. Food prices are always unpredictable. According to Michael J. Roberts, an agricultural professor, said dairy is particularly volatile. The price of ½ gallon of ice cream is up 7% since last year.
- Another item that consistently rises is cigarettes. If consumers are looking to save money, quitting smoking is one of the most effective ways due to a 17.5% boost in pricing. Part of the increase is due to the government’s budget shortfalls. In an effort to increase revenues, state officials periodically utilize hefty per-pack increases. Many states are enlisting the help of cigarette per-pack hikes to bring added funding to the economy.
- Bank fees are another expense that keep elevating. Bank of America, Chase and Citibank all charge a $3 fee to use ATMs. In addition, pricing for mortgage loans and personal loans come with heavy fees, some of which have doubled since last year.
- To many consumers’ indignation, highway tolls are also on the rise. Not only do people have to pay more for gas, they also have to pay more for traveling roadways. One example is Massachusetts. Their legislators are currently debating a 60% increase in tolls. The cost to travel round-trip into downtown Boston is currently $5 and the proposed increase would bring it to $8.
- Gas prices always go up regardless of the economy. Minneapolis Minnesota drivers saw a 63% increase in gas in the past year. According to the AAA, it is a nationwide trend for gas to go up and strain travelers.
What can be done?
Although these items are consistently costing more, consumers can find other ways to budget to help compensate. For example, carpooling can help defray the raised gas prices and tolls. Ice cream and cigarettes can be cut out of budgets, or at minimum scaled back. Postage stamps can be replaced with emails and telephone calls.
Tuition funds can be saved by using tax-advantaged tools like the 529 College Savings plan, and further aided with scholarship and grant money. Mortgage loans and personal loans can be sought and researched to find the lowest fees and lowest interest rates.
By using these tactics, hopefully consumers will be able to mitigate the rising costs of these items. One thing is for certain, consumers need to strategize wisely to make it through the recession unscathed.
