According to the survey conducted by the Learnvest in 2017, in America, 74% of people are in debt due to funding their vacation. Most of them had accumulated an average of $1,108 per trip. While finding the reason, the Learnvest explored that most of them had fund their trip on their credit cards and ended up spending money beyond their means.
Also, some of them had planned their vacation at the eleventh hour. They had to use their credit cards to fund their trip since they had no money in hand.
Well, planning a vacation is not a bad thing, even putting the vacation on a credit card is also not a blunder if you know you can repay the bills on time.
But planning a last minute expensive vacation with a credit card is a fatal mistake that can only invite mountain of debts later on if you don’t repay the bill.
The reason is using a credit card is recommended only when you can afford the bill. If you are planning a vacation beyond your means with a credit card, then no one can stop you from drowning in travel debt.
Moreover, you can always plan a last-minute vacation without a credit card.
So, why will you take the risk?
Today I will explain how you can plan a last-minute vacation without a credit card.
1. Calculate how much you can afford
Don’t think that to plan a last-minute vacation, you don’t need a budget. Remember, a budget can only make you know what exactly you can afford to spend on the trip.
Thus, you should calculate how much money you have, and how much money you need, to execute the trip.
The whole thing will help you understand whether you can afford a hotel or a camp. You will also know whether or not you can go by car or plane.
2. Calculate all the expenses previously
You may either travel by flight or train or your own car depending on the expenses. But you should make a calculation ahead of time. Research and track market rates. Thus, you can consider the best option that will not break your budget.
3. Fix a spending plan for the trip
Don’t go out for traveling without making a prior spending plan. Such a plan will help you to know exactly how much money you will be able to spend.
You should create a spending plan keeping the total trip budget in mind. It will help you to avoid cost that is not in your plan.
So, there is less chance to use credit card for blowing money on an unwanted item while in a trip.
4. Plan a small trip
You shouldn’t plan a long trip to avoid spending more. You can plan a local trip or a short trip so that you can manage the cost with the cash available with you.
5. Start saving money beforehand
If you want to travel without a credit card, then you should start saving much before planning the trip.
Set aside a certain amount every month in a savings account. When you save a decent amount, plan a trip.
By doing so, you don’t need to use your credit cards to book hotels or flights at the eleventh hour.
6. Use a prepaid travel card instead of credit cards
A travel prepaid credit card can be a handy option to travel without a credit card. Carrying cash is not safe when you are traveling.
A travel prepaid card allows you to load with enough money that you can use to fund your trip. It also helps you not to overspend for the trip since you have limited money in the card.
So, buy a prepaid travel card and load the card with the money that is required for the trip. As it is not a credit card, you can’t use it for spending more than what you have planned before. Thus you can’t accumulate debts.
7. Try to get an interest free personal loan instead of a payday loan
Taking out a payday loan for funding the trip is the biggest mistake. It will create more financial havoc since it comes with a higher interest rate and you have to pay it off with the next paycheck. So, if you think taking out a payday loan instead of using a credit card is a smart decision, then you are wrong.
In both cases, you have to pay off the bill within the stipulated time.
If you don’t pay it off, you will start accumulating interest charges on the outstanding balance.
So, if you are dying to go for a trip and don’t want to accumulate credit card debts, then request your friends or family members for an interest-free personal loan.
8. Make a list of places and activities you will enjoy
Make a list of all places and outdoor fun you’re going to enjoy. Thus, no one will influence you to visit another place that is not included in your list. This will help you to save money.
9. Enjoy free activities
You’ll find many free and inexpensive attractions that are full of fun. Consider those free fun to enjoy.
10. Remember, less is more
Carrying too much luggage can burst your pocket especially when you’re taking flight. Remember, you’re going to enjoy the place, not rocking the ramp.
So, try to keep less luggage. Your budget will thank you.
11. Explore and save
When you can get a cheaper rate for the same food that is available on the main point of the attraction, then if required, why don’t you travel a little far to save money on food? Higher rated restaurants, located near the hotels, know that hungry people will knock their door only and will pay whatever the rate is for the food.
So, you should explore restaurants that are providing food for less price.
12. Ask for the discount always
For me, asking for discounts has become a habit. I think it’s not at all a bad idea. Sometimes, the person who is making the bill can forget about the discount.
So, ask every time for a discount to save money.
Lastly, a vacation is a way to rejuvenate yourself from the daily monotonous work-life. But you shouldn’t break your budget to plan a vacation. Vacation without a credit card can be difficult but not impossible.
With little planning you can save enough money for your vacation.
The best thing you can do is making your trip as much frugal as possible so that you can enjoy a trip without pushing yourself in the sea of debt.
How can you plan a last-minute vacation without a credit card? Let us know by leaving your comments.