Sadly, debt is not a carousel you can get to every time you want. It stays with you until you do the right thing and pay off. So, now that you are about to do the wrong thing and travel, you even have to pack your outstanding balance. Let’s admit that nobody can be mad at you for your decision. Traveling is a tremendous experience and you should do as much of it as possible.
Still, going overseas when your credit card is fully loaded is a dangerous prospect. Forget the cost and consider the attitude. Every traveler has that moment where they think “screw it” and pay for things they cannot afford. Do that this time and it will not be an especially warm homecoming.
The excellent news is that traveling with debt is feasible so long as you comply. You must be proactive and smart and resist the temptation, but you can do it and have fun with these tips. Here’s what you need to remember.
*Say it five times without binding your tongue
Pay upfront
Get started like you mean by paying the start-up costs up front in cash. That way, there will not be additional debt going into next month’s balance that will linger for months. Instead, everything you buy will be something you can afford because you paid for it cash.
OK, you haven’t got to spend huge sums of money because that’s a saying. All you need to do is use a plastic that completes the payment there and then. Basically, avoid credit cards and use debit cards instead. A checking account takes money right away so there is no need to wait for the balance to clear. Plus, you can only use the money you have and not any type of loan.
If this seems difficult, you may want to reconsider leaving. Although, if that’s not an option, then you can use the cash that people must have given you beforehand. Moms and dads and grandparents all the time set aside a few dollars for your trip that will come in useful.
Be Plastic
If you’ll borrow money, then be sure you do it right. That is, you must find and secure the best loans. As a rule, borrowing from a bank is a bad choice because the interest is high and kicks in right away. Credit unions are a much wiser choice because their rates are low and they only lend small amounts. So, the total that you can get is not as big as if you went to a conventional lender.
So far personal financial options go, a piece of plastic is a great tool when overseas. Now, if you can avoid it then you should not use it at all. However, when push comes to shove, the promotions they offer are pretty cool. Obviously, 0% on purchases and balance transfers for two years helps when you are unemployed. But, so are the benefits of traveling.
For example, some cards reward purchases with air miles and money from accommodations. Looking like you are going to be staying in a hotel and flying repeatedly, this could work in your favor. Always research the APR and promotions before signing up.
And Flexible
Part of traveling with debt is cutting costs to the bone every time possible. Luckily, the market for travelers is a bargain market as hostels and bars understand that the earning potential is low. Still, there are ways to cut expenses even further so long as you are flexible. It’s about moving at the right time of day, week, month and season.
Flights are only really cheap when they run out season. Therefore, you should consider booking a seat when the offer is best. This may be during their winter season when people do not travel as much. Or, maybe on a Wednesday or Thursday when everyone seems to be at work. The same goes for accommodation. In summer, prices skyrocket, which is why it’s best to see the world in winter and spring.
In addition to the above, you should consider religious festivals and holidays. Christmas is peak in the west, but in the east, it is all about Ramadan, Eid and Hanukkah. Find out when the festival starts and book the date.
Change Banks
You will most probably use your card, debit or credit, when you travel. When it is needed, it does not matter. However, that does not imply you will not spend money unnecessarily during the process. After all, certain banks charge their customers handling and transaction fees. Even although they charge around 1-1.5% fees, the money amounts to a hefty amount over a long period of time. You should withdraw cash a few times a week, which is around $10.
Since you need as much money as possible, it is best to eliminate those expenses first. To do so, you will need to switch banks and get a card that can be used overseas in addition to at home. Another option is prepaid travel card because it’s made to attract and make purchases overseas.
Don’t all the time listen to what the banks must say because they might try and sell you a product. Instead, go online and check for unbiased reviews from people who have used certain cards. That way, the one you choose should work for you and not for the supplier.
Minimum Pay
Remember when the introduction said you could not leave debt at home? Yes that’s correct. Just because you are in Australia or Europe or Southeast Asia does not imply creditors do not want their cash. The excellent news is that you can pay the minimum amount until you come back and increase your earnings.
However, there’s a caveat. The main thing is that you do not miss a payment or the rate will increase. So open your online banking account and ensure there’s a debit coming out of your account every month while you’re away.
Isn’t that easier than worrying about debt? Won’t you have a better time for it?
