I’m on vacation now. Postpaid? In a recent survey, 57% of travelers said they plan to pay for one or more vacations with their credit card this year. While personal debt continues to grow at about the same pace as cards’ annual rate.
Vacations are still at the forefront of consumers’ minds. In the Spring/Summer 2023 Travel Report, trans union We found that 46% of those surveyed intend to travel more than they did last year.
Nearly 82% of those planning to travel today report actively saving for their trip. However, according to recent information, Surveys to increase your savings, 1 in 5 consumers are in debt to pay for their vacation. Data from the company’s fintech firm also shows that 81% of travelers have more than $500 in debt on vacation spending.
In the 2023 report, credit karma The survey found that 76% of Gen Z respondents born in the late 1990s and early 2000s were willing to take out debt to fund their summer trips and vacations.
Budget-conscious travel professionals are tackling this vacation debt problem with tips and tricks for managing vacation-related expenses. Strategies like expense tracking apps, unexpected destinations, and travel reward programs make it easy to budget and save on travel without going into debt.
growing debt
This dubious “buy now, pay later” strategy employed by many consumers further complicates the expensive problem of maintaining account balances and accruing high interest.
CNN US credit card debt levels will hit an all-time high of over $1 trillion in August 2023. federal reserve According to the Consumer Credit Report, the national average annual credit card rate (APR) in 2023 will exceed 20%. This rate is up significantly from the 2018 credit card APR average of about 16%.
How to Manage Travel Expenses and Vacations Without Going into Debt
Many travel and money experts recommend creating specific accounts to save money for vacations and travel expenses. Whether funds are donated regularly or sporadically, having a travel fund makes it easier to prioritize and manage vacation plans.
secure money in advance
Michael Hershfield, Founder and CEO of Accrue Savings, suggests setting financial goals for your next trip and identifying areas where you might be able to save money.
Travelers should start by having a clear plan of how much they are willing to spend on their next vacation. Work backwards from there to create a travel budget and start saving before it’s time to travel. pack and hit the road.
from robin saved me 10 cents advises travelers to: Please take this amount out and put it in another account. Once you know how much money you need to spend on your vacation, you can start planning a trip that fits your budget. ”
Book your trip early
Advantages of Clear One To save money, we recommend booking your vacation at least three months in advance. The earlier you book your transportation, accommodation, and activities, the more time you have to research travel information and take advantage of the best prices.
By allowing you to set a comfortable schedule for planning and executing your vacation goals, you can avoid cash-scrambles when booking travel. Pre-planning a trip also helps consumers avoid building up large account balances by relying solely on credit cards.
Use money-saving apps and tools
There is no shortage of platforms dedicated to helping people travel the world on a budget.
Travel-specific tools help consumers save when booking transportation and accommodations. rate punkFor example, is a free browser extension that searches the internet for the best hotel and Airbnb prices worldwide.like a mobile app hoppermeanwhile, compare budget-friendly flights, hotels and car rentals to identify low prices.
“For airline tickets, we found Google Flights to be the best website,” recommends Augustinas Milaknis, head of public relations at RatePunk. “It’s a very user-friendly platform that helps you find the best deals, explore destinations, and set fare alerts for price drops.”
Take advantage of travel and credit card rewards programs
Travel and credit card rewards programs can help you save big on your vacation if used responsibly. It’s important for travelers to identify their vacation goals and explore different programs to find the best option for their lifestyle. Consumers can get discounts or free flights, hotels and car rentals if they manage their spending properly.
Many credit cards offer travel rewards programs that allow participants to earn cash back or points that can be redeemed when booking vacations.For example, travelers planning an epic trip to Morocco and want to browse riad of fes Stays should be booked with benefits whenever possible.
“Flights and hotels typically make up the largest portion of a travel budget, so learning how to use credit card points was a game-changer,” says frequent traveler Curry Brandt. You rarely pay for flights or hotels between your Southwest Airlines Companion Pass and Chase Ultimate Rewards points. Last year we flew to Puerto Vallarta and stayed there for 4 nights. All inclusive hotel, and the whole vacation cost less than a typical dinner in a restaurant. Here are my favorite tips for enjoying your trip and staying out of debt. ”
Explore unconventional destinations and experiences
Travel influencer Ellis Armitage of What The Fab, member of Diverse Travel Blogger Group Wandering Babies, offers to explore out-of-the-box destinations. “Sometimes unexpected places and hidden gems end up being our favorite trips. Of course, Italy is iconic and beautiful, but it’s also expensive. There’s something exciting about discovering uncharted destinations that will be much more budget-friendly.”
luck reports that many families are looking for creative ways to cut travel costs, such as traveling by car instead of flying or staying with friends and family. Consumers can also implement savings strategies such as packing their luggage. weekender bag Instead of checked baggage to avoid additional airfare.
Travelers who don’t want to deal with cross-border vacation or international travel arrangements and fees can also plan a staycation instead. This increasingly popular travel option involves treating the experience as an exotic vacation while staying close to home. Staycations offer a unique way to explore new destinations in your area from the perspective of a tourist rather than a local.
“My partner and I took advantage of a credit card benefit for our wedding anniversary in February to stay at a hotel just 15 minutes from where we live,” says Jessica Bishop. budget savvy bride. “It was just what we needed, just a break from the hustle and bustle of everyday life.
The future of debt-free travel
As credit card debt levels continue to soar in the United States, consumers can implement savings strategies to save on vacation expenses. Tools like budgeting apps and points-based rewards programs can help make debt-free travel a reality.
This article was created by media decisions Syndicated by Wealth of Geeks.
Elise Armitage is the founder of What The Fab, a California-based travel and lifestyle blog founded in 2012. In early 2019, Elise left her company job at Google to become an entrepreneur and follow her dream of helping women feel great in the world. Everyday. Featured in publications such as Forbes, Elle, HerMoney and Real Simple, Elise strongly believes in being able to combine essence and style.
