The buzz about the high price of gasoline just keeps getting louder and louder. There is no end in sight to skyrocketing fuel costs, and the increasing prices are affecting everything from summer vacation plans to airline travel. How are Americans offsetting high fuel costs with everyday expenses? How are priorities shifting with prices set to shoot above $4.00 a gallon?

 

Gail Cunningham, Senior Director of Public Relations for the National Foundation for Credit Counseling says the top priority for many is saving their homes. Americans have been forced to adjust their everyday spending, creating an ugly domino effect.  

 

“The consumers that are coming to NFCC Member Agencies are trying to save their homes, thus are funneling all available monies toward the mortgage payment. This means that they're charging things they would have paid for with cash a year ago, including gas, medicine, groceries, and daycare,” Cunningham explains. “Therefore, credit card debt is rising, and it’s not for luxuries, but due to charging the basics.”

 

“Specific to the gas situation, they are more inclined to take a ‘staycation’ at home, rather than travel. People are frequently just putting enough gas in their car for each day, as filling it up is a thing of the past. Not only can they not afford such a huge hit all at once, but in the back of their minds they're hoping the price may go down a bit tomorrow,” Cunningham says.

 

Unfortunately, the situation won’t change anytime soon, consumer psychologist Kit Yarrow, PhD, of San Francisco’s Golden Gate University, says. “Consumers are about to see yet another huge spike in gas prices. In many parts of the country gas is, or shortly will be, at $5.00 a gallon,” Yarrow states. “This milestone jump will mark a tipping point in the ways that consumers psychologically respond to gas prices and begin major shifts in behavior.”

 

The hope that gas prices will dip tomorrow won’t last long, Yarrow says, and sooner rather than later people will have to face facts. “It's not just that prices have reached new highs; it's also that they’ve been continuously rising rather than fluctuating. In the past, fluctuations have allowed consumers to remain optimistic and therefore avoid changing their behavior in hopes of a decline,” Yarrow explains.

 

“This is the first time that most consumers will fully realize—without benefit of rationalization or denial—that gas prices are always going to be high,” he says. “It's therefore the first time for many consumers that they've had to face the fact that they're either going to have to devote a greater percentage of their income to gas—or they're going to have to find ways to reduce their consumption.”

 

Rising gasoline prices have affected more than land travel, spilling over into airline costs and even vacation budgets. “Airlines have increased fares, and if people do travel by air, it means they'll have less to spend at their vacation destination,” Cunningham explains.” After all, you have a finite amount to spend on a trip, and if airfare has taken the lion's share, it means you have to cut back somewhere else.”

 

The changes in consumer spending are creating losses in some unexpected businesses, Cunningham says. “I was at the dry cleaners yesterday and the owner commented that his business was sure to decline,” she tells demo dirt. “I said that people still needed to wear clean clothes, but he countered with the idea that they won't be dressing up and going out as much, thus the need for dry cleaning would decline.”

 

When Americans stop getting gussied up, will they also give up their beauty routines? Maybe not; looking good may stave off the blues. "Even during turbulent economic times, the beauty industry still flourishes because people want to look good to lift their spirits. During WWII, lipstick and chocolate were the things women bought to cheer up. Today, it's Botox® and luxury anti-aging creams that are selling!” says cosmetic surgery and skin care consultant Wendy Lewis, also known as “The Knife Coach.” Lewis is the author of the new book Plastic Makes Perfect: The Complete Cosmetic Beauty Guide (www.wlbeauty.com).

 

People may steer clear of the more extravagant procedures, favoring less expensive alternatives, Lewis adds. “Whereas plumping injections of Restylane®, wrinkle smoothing Botox®, other non-invasive anti-aging treatments are proving to be largely recession-proof, big ticket surgeries including facelifts and tummy tucks are definitely falling off,” she explains. “It is like coloring your hair or going to the gym; you are not just going to stop looking after yourself because your stock portfolio isn't what you thought it was.”

  

Discount procedures no longer carry the danger and stigma of botched operations or back-alley treatments in underdeveloped countries. “In today's competitive cosmetic surgery and beauty treatment market, Americans no longer have to search the web for discount clinics south of the border or half way across the world,” Lewis tells demo dirt. “We can identify board certified plastic surgeons and dermatologists across the US and we can usually work within our clients' budget. So instead of having a $25,000 facelift when they are worried that their job may be in jeopardy, more women are opting to have smaller procedures with less downtime, injections and laser treatments to keep up with the aging process without spending a fortune.”

 

The American desire to look good and stay young won’t be thwarted by a few extra dollars for fuel. “Even in a slow economy, you need to look good to maintain your edge both at work and in your personal life. Looking the best you can will always be a priority for Americans, but they are approaching it a little bit differently, at least for now. They are downsizing their beauty and grooming routines, and some are putting plans for bigger surgeries on hold temporarily, until we know what is around the corner."