How to Travel & Stay Focused on Debt Relief this SummerJun 27, 2018
Wondering whether you can travel this summer and still stick to your plans for debt relief?
You’re not the only one. Many Canadians who are committed to reducing their debt are also probably wondering whether they can still squeeze the cost of a summer vacation into their budget.
Our Licensed Insolvency Trustees (LITs) weighed in on this issue during a recent podcast focusing on summer travel and dealing with your debt load. Here’s a preview of what you’ll hear in this podcast episode:
Know how much debt you owe
Before you start to plan your trip, get a good sense of just how much actually owe and the type of debts that you’re carrying. Start by making a list of all your debts. Next, use an online debt calculator to determine the full amount of your debt load, including the amount of interest you will pay and how long it will take you to complete this process.
If you find most of your debts are long-term (mortgage, student debt, car loans), it’s not likely that you’re going to wait until these are repaid to go on a vacation.
But, if you’re carrying other type of debts, particularly high-interest credit card debt or a Home Equity Line of Credit (HELOC), you may want to postpone your travel plans to focus this year on debt repayment instead.
Avoid travel debt
For those planning on travelling this summer and still sticking to your debt relief resolutions, try to steer clear of additional debt. Create a vacation budget ahead of time to avoid overspending, and consider using only cash whenever possible while you are travelling. Using a budgeting app like Mint.com can also help you track your spending while you’re away.
Downsize your vacation plans
You don’t necessarily have to cancel the vacation altogether in order to stick to your debt relief goals. Opt for a “skinny” version of your original vacation plans — think a weekend away instead of a week, or an Airbnb apartment instead of a resort hotel. Cutting back on travel related expenses can help you stay true to your other financial priorities, like debt relief.