Planning a Debt Free Summer Vacation
A 2014 poll conducted by CIBC found that 55% of Canadians planned to take a summer vacation and spent on average $1,925 and that number will most likely increase this year.
With consumer credit card debt at an all-time high, it’s best to plan ahead to avoid going further into debt. Here are a few tips to help you avoid using your credit card or line of credit to pay for that vacation:
Budget - Sit down and figure out where you want to go and roughly how much it will cost. Take into consideration transportation, accommodations, meals, and attractions.
Savings - Set money aside from each pay cheque or set up a payroll savings plan with your employer to have the money automatically deducted each pay.
Deals - Use the internet and social media to search for travel deals, coupons, contests, and giveaways. If you are not stuck on a particular hotel you may be able to get a better deal by booking at the last minute.
Memberships/Reward Points - Use credit card or reward card points towards the cost of airlines, car rentals, restaurants or entertainment. You may be entitled to additional discounts if you belong to CAA or a professional association.
Travel Insurance - Consider purchasing travel insurance in the event you have to cancel your vacation due to unforeseen circumstances such as a death in the family or illness.
If you did not start saving soon enough and don’t have enough money then you may want to consider delaying your trip to the following year. Your vacation will be much more enjoyable if you know that it is paid for in advance.
Powell Associates Ltd. is a Licensed Insolvency Trustee (LIT) focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses. We offer free consultations to review your personal financial situation and practical debt resolution options. Contact us to discuss your situation over the phone or book an appointment to meet us face-to-face in Saint John, Moncton, Fredericton, Charlottetown or Dartmouth - it's your choice.