The myth of travel tricks, discredited
There is no secret formula for cheap flights. Here is the truth about travel “hacks.
Cruise altitude
- Many Americans borrow to finance their vacations, a tendency to financial experts strongly advise.
- The emergence of the “Vacation Justi”, where people travel despite not being able to pay it, is contributing to increase the debt of the credit card.
- Saving for a vacation in advance and avoiding the temptation of “free” miles that come with high -interest credit card debt is crucial.
Can you pay your next vacation?
Be honest.
If you said no, you are in good company. Last year’s great travel trend was the “justified vacations” or “justification”, which is when someone takes a vacation despite not being able to pay it. In a survey conducted by the Insurance Company and Travel Assistance Allianz Partners, 47% of Americans said they could not pay a vacation, but 49% said they would probably travel anyway.
Another survey conducted by Bankrate found that more than 1 in 3 travelers were willing to borrow to pay their trips.
“Take debts to pay a vacation is No An intelligent decision, “said Steven Kibbel, a certified financial planner.” The interest rates of the credit card are high, typically of 20% or more. ”
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That means that your dreams of your dreams could cost you much more than you expected.
Look, people have borrowed to finance their vacations since there has been vacations. But now they have gone too far. Americans owe more than $ 1 billion in debt of credit cards, driven in part by a voracious appetite per miles. And many see their holidays in plastic as a mutual benefit: now they get the instant gratification of a trip, in addition to “free” miles that they can use for a future trip.
Breading for a vacation is not the best idea. It will harm your finances, it will stress you and will probably leave you in need for other vacations. There are much better ways to deal with a trip that you cannot pay.
“Never, never, ever Endeud to travel, “said Suzanne McConaghy, an expert in travel finance.” Make a plan, set an objective, save your money, and so go.”
Ok, but why?
Why indebted to travel is crazy
The charm of a perfect vacation, often fed by social networks, can quickly carry it by bad way. Admite it: those set of Instagrams that enjoy a five -star resort, paid completely with “free” miles, are irresistible.
It is also a lie.
There is no such thing as free. It is true that travel computer pirates are accumulating points and miles with each stay financed by debt. But they are also playing a dangerous game. If you do not pay your balance in its entirety every month, interest charges will quickly deny the value of any reward you win. It is a fool’s message.
“Assuming any form of debt can significantly increase its stress levels,” said Jeremy Clubb, founder of Rainforest Cruises, a tourist specialized in river boats and small ships in the Amazon and Southeast Asia. “That often exceeds the relaxation trip and mental well -being is intended to provide.”
For this story, I interviewed dozens of travelers, some of whom insisted that taking debts to travel was sometimes justified. They said it is appropriate to go red for special occasions or unique events such as a honeymoon. Some even stated that the points made everything worth it.
What I say: Without meaning! In fact, the more special the occasion is, the more financially conservative you should be. Who wants to spend the first year of your marriage drowning in debt?
How is a vacation allowed, then?
I will give you directly: the best way to guarantee a vacation without stress is to live within your possibilities.
“Try to be more creative about how you travel,” said Jeremy Murchland, president of Seven Corners Travel Insurance. “To start, think why you want to travel. Unless your heart is established in a certain destination, you can find some alternative ways to achieve your holiday goals without delaying.”
In other words, plan in advance and explore alternative options that do not require borrowing.
I know that the world’s travel advisors will hate me to say this, but maybe consider a stay, visit local attractions or make a road trip to a nearby destination.
But what happens if you want to go somewhere expensive?
Mitch Krayton, a Denver professional travel advisor, said he should save for a great trip.
“Mud from $ 100 to $ 200 per week automatically of its verification in a special savings account,” Krayton advised. “When you are ready to travel, reserve with cash.
Do not spend more than you have. It is that simple.
Μaybe needs a vacation budget
There are two types of travelers: those who spend as little as possible and those who do not know the meaning of the word “budget.”
If you are in the last group, listen: one of the best ways to avoid spending excessively is to create a budget. Applications such as Travelspend or Trabee allow you to visualize your expenses, track them and plan your trip so you don’t spend too much.
If you do not want to use your smart phone, you can always invite a friend who is in the old group, those who never spend. (That would be my brother). They can spend the whole trip telling you: “No.”
And if you are in the previous group, this story is not for you. He will never spend too much on his vacation. I should have interviewed you for this article.
The story continues below.
Other ways to avoid vacation debt
Ok, how can you get away from vacation debt? Here are some ideas:
- Take a stay. I spent a week exploring its own city. You may surprise you what you discover. “The stays may sound horrible,” said Sam Hohman, CEO of Credit Advisors Foundation. “But if planning is dedicated to them as a destination vacation, they can really be memorable and personally restorative.”
- Travel during the low season. “The place where you want to see will be the same as great during its low season,” said Christopher Falvey, co -founder of Unith Nola Tours. “But it will be less busy and less expensive.” So you get the same experience for less, just because you waited a few weeks.
- Abbreviate your vacation. “If everything you only need is a break, and who doesn’t? Discover how you can enjoy free time without having a lot of money,” said Erica Sandberg, an expert in consumption finance at Cardrates.com. For example, a weekend getaway instead of a two -week adventure may be enough to recharge your batteries. And it will also save you time.
So, the next time I am tempted to reserve the dream vacations on credit, remember this: a debt paid trip is a trip that you cannot pay. Instead, focus on saving and planning. He will enjoy more of his vacation knowing that he will not return home with a mountain of invoices.
Christopher Elliott He is the author, defender of the consumer and journalist. He founded Elliott’s defense, A non -profit organization that helps solve consumer problems. The public Confidential Elliotta travel bulletin and Elliott reportA news site about customer service. If you need help with a consumer problem, you can Reach it here Or send an email to chris@elliott.org.
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