4 Simple Ways To Avoid Debt When Traveling During the Holidays
Written by
John Schmoll
Edited by
Jenna Klaverweiden
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Traveling during the holidays is a given for many Americans each year. Creating memories comes at a cost, and current economic headwinds make that rite of passage challenging for more Americans. A recent report from CardRates.com sheds light on just how difficult this holiday season is for families. The report revealed that 70% of Americans would skip holiday travel if it were to result in credit card debt.
Planning to travel but don’t want debt this holiday season? Here are four simple tips to travel during the holidays, avoid indebtedness and create fun-filled memories.
Also see six ways to cut your travel costs this holiday season.
Create and Stick To a Realistic Travel Budget
As with any major expense, having a budget is key to staying within your means. Doing so helps you avoid a holiday hangover once the credit card bill arrives in January. The key is to prioritize what’s essential and cut the rest.
For example, an expensive excursion or dining at a fancy restaurant might be out of the question. Instead, look for more affordable options to stretch your travel budget. And, when you use your credit card, charge only what you know you can pay off.
If you have credit card rewards, don’t overlook using those to offset costs. Some credit cards allow you to book excursions and experiences with points. Doing that can be a good way to have fun without spending cash.
Book Travel ASAP
The holiday travel season is undoubtedly expensive, and one prevailing reason is demand, as many people travel, driving up costs. Planning and booking travel early is vital to not overspending.
The cheapest time to book airfare for the holidays, for example, is six to 12 weeks in advance of your travel date, according to The New York Times. If you can be flexible in your travel dates, that can be helpful. Track the route you’re traveling via free resources like Google Flights to get alerted when prices change dramatically.
Be Creative in Your Lodging and Transportation
Lodging is another expensive part of holiday travel. Demand similarly drives up cost. The average cost of a hotel room in most major cities is over $200 per night, according to The Wall Street Journal.
There are some creative ways to save if that’s too rich for your holiday travel budget. Ask your friends or family if you can stay with them to cut costs. If that’s not possible, consider splitting a rental with friends and family traveling to the same destination to save money. Consider doing the same if a rental car is necessary to reduce costs further.
Keep Day-to-Day Spending in Check
Unplanned spending can quickly accumulate debt, especially during the holidays when traveling. Rather than indulge in reckless spending on your credit card, have a daily limit to stick to and include every expense, no matter how insignificant.
It’s relatively easy to travel with snacks and a water bottle to avoid purchasing food while out. Take advantage of free or low-cost local attractions to optimize your budget. Better yet, game nights and at-home movie nights are a fun way to create memories at a minimal cost.
Holiday travel is undoubtedly expensive, but there are ways to experience it without incurring credit card debt. With prudent planning, discipline and a little creativity, you can enjoy the memories debt-free.
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