The official start of summer is just around the corner, and millions of families across the country will be heading off for vacations in the coming weeks. Unfortunately, debt and summer vacations go hand in hand all too often.
In a 2015 Experian survey of 1,000 adults, more than two-thirds of the vacationers said they overspend on vacation. Credit cards are often the most-used payment method on vacation. Half of the survey respondents said they spent so much on vacation that they accumulated credit card debt. Similarly, a 2017 Learnvest survey found that 74% of Americans have gone into debt for a vacation, accumulating an average of $1,108 per trip.
Here are some tips on limiting the financial stress of your summer vacation.
1. Plan and set a budget
Having a rough idea of your destination, travel dates, and itinerary will give you a sense of how much the trip may cost. Do some research to find deals in advance. Airlines and hotels often have lower prices during off seasons, which you can frequently find by searching on social media. Weekday hotel reservations and redeye flights can lower costs, so keep a flexible schedule.
2. Start saving
Once your budget is in place, set aside an amount from each paycheck to get there. Quick tip: Set up automatic monthly deposits from your checking account into your savings account so you don’t have to worry about it. If you get a work bonus and don’t need it to pay off credit card debt or bills, that money can help pay for your trip as well. If you can’t afford your vacation without going into debt, it might be wise to look for a side job to help supplement your paychecks.
No vacation is worth going into debt for. If you do your best to save and hunt for deals, and you still don’t have enough to cover the costs, it may not be possible to avoid a debt-free trip this year. Waiting until next summer gives you a full year to save. You might be able to increase your budget, and you will be able to relish the experience even more.
Get Out of Credit Card Debt
A good bankruptcy lawyer can help you get out of debt, improve your credit score, and get a fresh start. Throughout the past 30 years, as a Memphis bankruptcy lawyer, I’ve helped thousands of people get out of debt and turn their lives around. I can do the same for you.
If you have questions or concerns, we are happy to sit down and discuss your options at no cost. Contact us here or call (901) 327-2100 to get started today.