Why You Need To Avoid Debt While Traveling (and How to Do It)

Are you thinking of going on a vacation this coming summer or over the holidays? You might want to read this before packing your bags. Recent studies have found that over 74 percent of Americans go into additional debt during their vacations. As you can see, this is a real problem, especially when the getaway is meant to relax you. So, how can you avoid this pitfall? THere are some reasons why it's bad to use credit on your vacation and how to avoid it.

It Quickly Adds Up

If it's only a $10 parking pass here and a $2 cupcake there, how can anyone fall into serious debt from spending such small amounts on their credit card? The fact is that these small expenditures can quickly begin to add up over the days that you're on vacation. If you don't have the money right now to spend on those things, the chances of paying off the whole credit card balance at the end of the month are low, to say the least. You should absolutely bring a credit card on vacation for emergencies, but using one constantly on small items can quickly run up your debt. Make sure that you make a budget beforehand so your spending doesn’t get out of control while you’re on your trip.

Points Equal Debt

When vacationers explain why they constantly use their credit cards, it's often because of the points they can accumulate. Credit card companies are extremely good at promising you flight miles for that next vacation you might want to take. The fact is that those points are not worth going further into debt, so never fall for this trap again. Use cash accumulated through a vacation fund to spend wisely and come home relaxed and debt-free.

Even Credit is Risky

You may think that using a credit card is inevitable. After all, how are you going to rent a car? However, if you don’t want to use a credit card to rent a car, you still have options. Despite popular belief, you can rent a car with a debit card if you don’t want to risk getting into more credit debt. On top of that, hidden fees are a common issue among rental car companies, and when you put them on revolving credit, the interest can increase exponentially in a few months. That $100 rental car can eventually end up costing you $400. How can you avoid this? Look for companies that don't require a credit card. They're out there.

Traveling should be as stress-free as possible. This means not having to worry that you will fly back home with a suitcase full of debt. Traveling can be possible without using credit. Simply adhere to the list above to begin being proactive about your planning.

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