WASHINGTON — As the price of gas and food continue to climb, more and more Americans say they are worried about a slumping economy and its effect on their lives.

Layoffs, declining housing prices and record foreclosures in communities have some consumers on edge. Recent surveys show consumer confidence as low as it was in the 1970s.

Whether well off or struggling, many Americans have reacted. They have begun to cut back on dinners out, squirrel away more money and in more desperate situations load up their credit card balances with everyday expenses.

"There is lots of fear," said Deepak Bhargava, executive director of the Center for Community Change, a national advocacy group for low-income families.

"They're seeing their neighbors go into foreclosure. They're seeing a lot of folks cutting down on their expenditures," he said. "Some of it is very realistic fear that they don't have enough to protect them if things go south."

Gannett News Service talked to four families about their concerns about the economy. To help them make sense of the changing times, we asked three financial planners to offer general recommendations.

BEST INVESTMENT? PAY OFF DEBT

If you're carrying a lot of credit card or other debt, pay it down.

That's your best investment — not stocks, not houses.

Invest $10,000 in a 10-year Treasury note and you'll earn 3.36 percent a year, or $336. After 10 years, you'll have pocketed $3,360.

What if you have a $10,000 credit card bill, and the card charges a 19 percent interest rate? If you pay off that debt now, over 10 years you'll save $15,672 in payments and $6,204 in interest.

Put another way: You'd earn $336 in interest from your T-bill in your first year. But you'd save an average $350 a month the first year by paying off your credit card.

Even if you pay down your debts gradually, you'll free up money for later.

WHAT TO DO

Stop using your credit cards. Pay with the cash you have.

Call your card company to try to get a better rate, perhaps transfer balances to a cheaper card, or consider a home-equity loan to pay off the cards.

Pay off cards with the highest interest rate first, pay more than the minimum and put whatever you can — including your economic stimulus payment — toward the outstanding balance.

Save. Even $10 a week in a savings account — the proceeds from using grocery coupons — might spare you from having to reach for plastic in an emergency.

Get help. Find a list of state-approved credit-counseling organizations at www.usdoj.gov/ust. Many credit unions and military bases offer free credit help. Or call the industry trade group the National Foundation for Credit Counseling at 800-388-2227.

WHAT NOT TO DO

Don't even think of paying off one card with another. That's not the same as a balance transfer and means you'll just incur additional interest expenses as you play this shell game. Instead, call your credit card company and try to work out a payment schedule.

Never tap your retirement account. You'll owe taxes on withdrawals from a 401(k) or deductible IRA plus a 10 percent early withdrawal penalty if you're under 59›.

Don't pay off low-interest debt unless the payments are onerous for you. If you have a loan that charges 6 percent interest or less, don't worry too much about it.

Avoid scam-prone credit-repair firms. Typically, they demand upfront fees for services that people could do themselves — or services they don't perform. You'll end up losing your upfront money and keep the same debt. The Federal Trade Commission offers sound advice on credit-repair companies at www.ftc.gov/bcp/conline/pubs/credit/repair.shtm and provides detailed information on how to repair your credit.

Don't give up. In extreme cases, you might have to seek bankruptcy protection. But if you're willing to work at reducing your debt, you can.

— USA Today

WHAT TO DO WITH YOUR ECONOMIC STIMULUS CHECK

The economic stimulus payments that the IRS will send out beginning in May don't have to be spent on the latest electronic gadget. Here are five things that will help your personal economic standing — if you don't mind forgoing the fun:

Pay down high-interest credit card debt or vehicle loans.

Start funding a Roth IRA for 2008 — or a traditional one if you're eligible.

Add money to your emergency fund.

Save for college, the holidays, vacation or home renovation.

Tack on extra principal to your house payment.

If you feel like those suggestions offer all peas and no chocolate, set aside 10 percent to treat yourself and your family and be more frugal with the remainder.

— Gannett News Service