6 Tips to Avoid Credit Card Debt When You Travel

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All this week we’ve been talking about saving money so you can travel more. Today’s post (part 5 in this 5-part series) has a different twist. Once you’ve saved enough money to reach your destination, how can you avoid returning home with credit card debt? I offer 6 travel tips…

But First, a bit of My Travel Philosophy

Ben Posing With His Camera

Before I share my tips, I want to briefly touch upon a part of my travel philosophy. I don’t travel on the cheap (like many backpackers do), but I don’t travel like a rock star either (but I like to pretend I do). I’d rather delay my trip for a month and eat at nice restaurants, than travel sooner and skimp on dining. You may find me experiencing those costly tours that you’ve only dreamt about doing (but I’ve saved for months beforehand so I can do that). So in the tips below, you won’t find tips to travel cheap and stretch your money further, but instead how to be smart with your money when you travel. In other words, how not to be wasteful.

1. Watch Your Daily Budget

Before you left home you should have set a daily budget for accommodation, food, transportation and activities. Many of these costs are fixed and can’t be changed (plane ticket, hotel room, etc.). But many costs like food, transportation, souvenirs and activities are variable and can be adjusted day-to-day. It’s obvious that if you spent a lot of money on Day 1, you should spend less on Day 2. But if you don’t budget ahead of time and manage that budget, you’ll return with Credit Card Debt. No Good. NG!

2. Sprinkle Low-Cost Activities in Your Itinerary

There are plenty of fun, free things to do in any city. Do a google search (here’s an example from GloboTreks for New York City). But sometimes, the simplest things are best. Take a walking tour (like I did in Vancouver), have a picnic, go to the beach or watch a movie. Even when you travel, you need some downtime. If you go, go, go all the time, you’ll tire yourself out and get sick. This is especially important for long trips.

3. List the Souvenirs You Need to Buy

Just as you budget your spending when you’re home, budget your spending when you’re abroad. What exactly do you need to buy? Christmas Presents? Something for your home? The latest addition to your thimble collection? If you decide beforehand what you need to buy, you can easily avoid buying things you may want – but not need.

I always buy…

• A Country Flag Patch for my Suitcase
• Culturally-related Christmas Ornaments
• Something to hang on the wall at home
• A musical instrument for my brother
• Cultural artifacts for my parents and friends
• and maybe a piece of local fashion for me.

Once I’ve bought everything on my list, I stop shopping (and spend that money on less tangible memories).

I also take a lot of photos. With an upfront investment in a strong, reliable digital camera, I am rewarded with great photos that I print at home and decorate my house.

4. Negotiate Your Price

This will depend on the country that you are visiting, but many prices are negotiable. Cabs and local markets are common venues where you can practice the art of bartering, but it’s possible to drive down the price you’ll pay on beach toys, tours and other activities too. Aim for the local operator over the corporate owner to increase your odds.

5. Travel with Friends

Traveling with friends is fun, but it’s also practical. You can split the cost of hotels, rentals cars and buy groceries in bulk. Some tours may require a minimum number of participants and if you’re traveling alone, you may miss out. There’s strength in numbers and you’ll have a blast.

6. Take Public Transport

Renting a car is great for long-hauls. But if you are in a major city (or trying to get from one major city to another), public transportation is the best. I know taking the bus is a foreign concept to us Americans, but in other countries, it’s a widely-accepted option. Public transport is cheap, offers discounts for weekly passes and is generally safe and reliable. You’ll save on parking, tolls, gas and rental fees.

In Conclusion

You can avoid it all by leaving your credit card at home… but that’s not realistic. Indulging when you travel doesn’t have to mean 4 pages in your credit card bill, but you don’t have to be cheap either. Careful planning before you leave and during your trip will ensure you’ll have plenty of cash to see and do everything you want and return with no worries.

What advice do you have to avoid credit card debt when you travel? Share by commenting.

I’ll see you out there…!

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