We’re knee deep in summer and that means one thing: vacation time. While you definitely deserve some time off, we’d recommend not taking it at the expense of your budget. Unfortunately, a new study from Experian Consumer Services found that many Americans are doing just that.
Experian’s report found that 46% of people used a credit card to pay for their vacations because they hadn’t saved enough. Another 49% of travelers racked up credit card debt while on vacation and almost 70% admitted going over their budget. The most common items that added to vacationers’ credit card debt: hotels, airfare, entertainment, and dining out.
There are ways to keep your spending down and avoid going into credit card debt while on vacation. First, start small with your savings plan. Setting aside a low amount far in advance of the occasion will make things easier on you. If you try to cram your savings into the two months before the vacation, you could risk missing your mark. Also, if you’re driving, pack food for the road to avoid spending on costly meals.
When setting a budget for your vacation, keep in mind that there are always unexpected costs, so aim a little higher than you think you should. Just being mindful of debt can help. “You don’t want to come back with two weeks’ worth of memories and two years’ worth of debt,” Becky Frost, education manager for Experian Consumer Services, told USA Today.
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Article courtesy of Chris O’Shea of Savvy Money.