Welcome to Extreme Investor Network, where we provide you with unique information and tips to help you navigate the world of personal finance. Today, we are diving into the topic of summer travel and how to avoid getting into debt to pay for your vacation.
Did you know that 36% of Americans plan to take on debt in order to travel this summer? According to a March survey from Bankrate, the most common payment methods for summer travel expenses include personal loans, buy now pay later services, borrowing from family and friends, and using credit cards and paying over multiple billing cycles. This can be concerning, especially considering the average credit card interest rate is close to a record high of 20%.
Millennials and Gen Zs are the demographic cohort most likely to say they plan to go into debt to pay for vacation. While it’s understandable to want to create lasting memories through travel, it’s essential to find ways to fund your vacation without falling into costly debt.
Financial experts recommend planning ahead and budgeting accordingly to afford a vacation. Set a budget for categories of spending while traveling such as food, activities, and transportation. Give yourself areas where you splurge and others where you spend conservatively to find a balance.
Another crucial step is to make a plan to save. Start small by setting aside a little bit of money from each paycheck. Look for creative ways to save, such as using frequent flier miles or credit card rewards. Consider visiting destinations during the offseason when prices are lower, and be flexible with your travel plans.
At Extreme Investor Network, we believe that financial freedom and smart decision-making are crucial for a secure future. By following these tips and being mindful of your spending habits, you can enjoy a fun and budget-friendly vacation without going into unnecessary debt. Stay tuned for more valuable insights and advice on personal finance topics.