In fact, more and more people use credit cards while on holiday. Is this a good idea for you?Credit cards offer a number of advantages for your vacation. Using them is much more practical than having to carry cash while travelling. The main advantage of credit cards is the ease of use for purchasing tickets and hotel reservations. And increasingly you can find discounts and promotions if you pay this way. However, without proper financial planning, credit cards can be expensive.
However, without proper financial planning, credit cards can also be a disaster. This time, KreditAja.com has some tips about using them or your vacation needs:
- Debt and assets
The use of credit cards to pay for a vacation. There is nothing wrong with debt. But remember, the debt must be in accordance with the asset. Never owe more than your assets. The formula is simple, but very important to keep in mind before you decide to use a credit card for a vacation needs.
- Plan a vacation
Maybe you are the type of tourists who vacation in the school holiday season, Eid, or Christmas. Some prefer to hunt promotional packages. Your type, destination,date length of holiday time should have bee decided long ago. By setting these things, it will be easy for you to plan your finances.
- Finance for vacationing
Maybe you do have a holiday fund existing and need the use of credit card transactions only for tickets and hotels. Or you might not not have sufficient funds, so you have to use a credit card. Whatever your choice, planning your holiday budget is really important. Then you can calculate which is to be paid with a credit card and how much cash should be provided.
Along with the aforementioned two points, specify the maximum number of overall spending for the holiday and its allocation. How much for a tickets, hotels, shopping, tourism activities, eating out and unexpected holiday expenses. Do not forget to calculate withdrawing money at an ATM. What’s more if you are traveling abroad, the value of different currencies.
- Debt for vacationing
For credit card users, KreditAja.com strongly recommend that you start with a set amount and period of paying the debt repayments that you can afford to make. For example, 30% of your monthly income for four months. If you’ve got a number of credit cards for holiday use just one, although you must ensure you are in credit with your card limit!
- Maximize finances for vacationing with credit cards
Sometimes credit cards can actually maximize your finances for a vacation. Before a vacation, check in advance with your credit card provider / bank. There may be a promotion, discounted restaurant or tour packages that you can use when you arrive at your vacation destination. If you have more than one credit card, your chances to get these is even greater – but remember, it’s still debt. So you have to be disciplined with your plans.
- Credit card security when on vacation
KreditAja.com advise that you never let go of your credit card from your supervision. This includes lending the card to other parties. Similarly, as much as possible you should never rely entirely on your vacation an electronic payment card. Because, if the card is lost, you are in trouble financially. From your holiday financial allocation, funds for sudden needs can be deposited where you can trust, for example, a hotel safe or online account such as PayPal. If you save funds on other cards, such as debit cards, get used to not carrying both cards at the same time. Do not forget to save the phone number of your credit card provider, if there are any problems with your card on your holiday.
In essence, a credit card is proven to help your financial ability on vacation. However, if you can not be wise and cautious, you are recommended not to use a credit card for a vacation needs. If you already have too much debt, you have to find a way to pay the debt of the holiday, for example, doing a side job for extra money. You do not need extra stress just after a relaxing holiday!
If you find these tips useful, or are interested in any of our services, please visit our website, KreditAja.com.