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All deserve a dream vacation and long for the same. Studies show that 17 percent of US citizens cited that they would like to go places in 2019. Then, just as many Americans, when you have huge credit card debts, affording a vacation becomes a distant dream. Did you know that an average US household has a burden of $5,580 credit card loans? It was a study by the TransUnion’s 2018, third-quarter report. The amount is much for many people while some may feel that they can afford a vacation even if they have that amount of credit card debt.
If you think making the minimum monthly payment will solve all your debt-related problems, you are mistaken. It means two things. One, you have multiple debts and secondly, you can never dig out of your debt if you keep shelling out the minimum amount. Therefore, many Americans put their travel plans in the closet until they become debt-free.
According to an article published on https://www.huffpost.com, today, you have numerous travel credit cards that shower rewards, lucrative loyalty programs, and multiple options to redeem points to make your dream vacation a reality.
In this article, we will walk you through the three best tips to dig out of your debt so that you can afford a dream vacation. Read on to learn more.
- Book a vacation with a travel rewards card
When you manage to pay off your credit card debts or reduce the same, you will not like to add huge debts again onto the same card when planning to book hotels, flights for your next vacation. No sensible person will do that. You can use your travel credit card that offers points, rewards, and benefits. Make the most of such travel cards. If you have traveled often in the last couple of years, you may use the card loyalty points to redeem them for discounted or free travel to places like France, Bali, Italy, and many more. Of course, not of all these destinations at the same time!
Let us give you some examples to make this point clear. For instance, if you have a travel card that rewards you with two miles for every dollar you spend on stuff, there is nothing like it. Additionally, you receive 50,000 bonus miles when you shell out $3,000 in the initial three months you have this card. The greatest benefit is that you need not pay an annual charge for the first year. All you need to do is keep your options open and research to opt for the best travel cards with rewards. If you already have one, there is nothing like it.
When using your travel credit card that rewards you with points or miles, avoid buying stuff that you do not usually purchase. The best way to use such cards is to buy the merchandise you usually purchase and pay the full outstanding balance each month.
If you want to know how to manage your debt and travel at the same time, visit websites like NationaldebtRelief.com or similar ones.
- Create a budget now to make your vacation a reality
It is imperative that you watch your spending habits and start saving before you book your vacation. Savings means creating a budget and living within the rules. Look at your credit card statements from your previous use and figure out where you can minimize spending. If you are paying for subscriptions that you do not really need, stop using them and put aside money every month for your dream vacation. If you are using Uber Eats six times a week, eat once or twice. It will save much of your money at the end of the month. These little things matter a lot when it comes to saving for your dream vacation.
You will find many items in your list that are not essential. Saving is equally important during the trip. If you feel that you will camp in most of the places, avoid staying at expensive hotels. This way, you can cook your meals. There are many campsites offering barbeque cooking areas. You will save with respect to both hotel bills and restaurant charges.
Visit the best attractions of a tourist spot, excluding the less important ones. If you feel like booking a hotel for a particular spot and eat at restaurants, you can do so in moderation. It all depends on how much funds you have.
There are many ways to plan a budget vacation before and during the trip. Why spend unnecessarily when you can manage and have the same fun by spending less?
- Choose a travel credit card that has no foreign exchange fee
Now, this is most important when you traveling out of your country. Did you know that a few cards would charge you a whopping three percent for every shopping you do in a foreign country? There are charges for ATM withdrawals too if you are outside America.
You need to be aware of these facts; else, the fees and charges will eat into your vacation plan and budget. This way, you will end up adding more debts to your card. Therefore, choose the right travel credit card that charges zero or a minimum fee for shopping abroad.
Educate your family too about these things so that they do not use their standard credit cards to buy stuff in a foreign land and end up in debt.
Opt for cards that do not have foreign transaction charges or fees. Then, always read the fine print carefully before you opt for the card. Take some time and read all the documents carefully. Do not rush into it. For example, the Bank of America Travel Reward Card has no foreign transaction fee or an annual charge. Again, the Chase Sapphire Preferred Card has no foreign transaction charges. There are other options as well. Take some time out of your busy schedule and research. Pick the best travel card that suits your vacation needs.
Conclusion
Whether you plan to explore the picturesque Hawaiian Islands or unwind at a cliff-top bar at Bali, manage your credit card debt and choose the best travel-reward card to make your dream vacation a reality.
