It may seem impossible to take this much-needed break from the debt-paying process, but it doesn’t have to be. By planning a vacation on a budget and sticking to your goals, you can transport yourself to a new place and recharge.
That’s the approach taken by vacation expert and YouTuber Jasmine Gillies of the Jazzie RayShaune channel and her husband. The couple, who live in Kansas City, Missouri, are working to pay off their remaining debt of about $64,000 on their second debt-repaying trip after taking strict measures to stay home and avoid extra expenses. It’s been “painful,” she concluded.
“We both work full time and wanted to get some fresh air, but we still had to remember we had debt to pay off,” she said. “We wanted to go out and we loved having fun, but we realized we could still do that on a reasonable budget.”
Time doesn’t guarantee everything, especially when we’re on vacation with older family members or starting a new job that doesn’t require a certain amount of paid time off. When deciding to travel, consider the emotional and financial costs. Choose an option that you won’t regret and that allows you to stick to your debt repayment plan.
Here are some ways to pay off debt while on vacation.
Reviewing the budget
Review your debit and credit card statements to see where your money is going. Know your numbers, including income, expenses and debt, says Tiffany Grant, a certified financial advisor in North Carolina. Understand how much you need to pay off your debt each month in a set period, and guard against setbacks by building an emergency fund.
Use this information to see if you can start a vacation fund. If money is tight, consider whether you might be better off focusing on debt.
“If you can’t make your payments — even the minimum — and you’re in negative territory every month, it’s probably not worth the trip,” Grant says. Or if you prefer, opt for something of much less value.
Also consider whether you can cut back on spending in certain areas to speed up savings. Rather than taking a rigid approach to debt repayment as they once did, Gillian’s family found ways to adjust costs to be more flexible with their spending.
“Date night might not be dinner and a movie, but watching a movie at home,” she said. “We used to work out at home most of the time, so we cancelled our gym membership.”
To save more money, Gillians said she also switched to cheaper providers, such as streaming services. With these adjustments, Gillians was able to plan a vacation to Destin, Florida, to celebrate her husband’s 50th birthday.
make a plan
Brainstorm your destination and the costs for transportation, accommodation, activities, meals and possible out-of-home shopping. Also leave some room in your vacation budget for unexpected expenses.
Consider these ways to save money:
Redeem rewards. Chasing credit card rewards isn’t ideal when traveling to pay off debt, but using the rewards you earn can help lower the cost of your vacation. Rewards earned through loyalty programs can lower costs. Gillians said she was able to save $40 on her trip using rewards earned through Vrbo.
Explore free or low-cost activities at your destination. Find ways to experience your destination on a budget. For example, consider taking a free walking tour (many cities offer these), visiting a national park on a free day, or taking a free trip to a museum to soak up the culture. If your budget allows, you can enjoy the experience of a vacation without paying the high price. Companies like ResortPass allow you to pay to use a hotel’s spa, pool, or gym for a day. However, if you’re traveling with a large group, these costs can add up.
Cook your own meals. By shopping outside of the crowded tourist spots and cooking your own meals at your hotel or vacation rental, you can save money compared to eating out at restaurants. If this isn’t an option for you, put your meal expenses into a vacation fund.
Be flexible in your choice of accommodation. Where you stay depends on your preferences and needs. Consider a variety of options, including campgrounds, hostels, vacation rentals that you can share with a group, and last-minute hotel deals. “Secret” hotel deals through services like Priceline or Hotwire can save you money, but key hotel details are kept secret until you book. You can only see the price, star rating, guest ratings, limited photos, location overview, and a list of amenities.
Damage in transit. Staying local or on vacation can make traveling more affordable. Websites like Going, Fare Deal Alert, and The Flight Deal can alert you to cheap flights. In addition to the cost of flying to or driving to your destination, consider the cost of transportation once you arrive. Public transportation can cost less than a car, taxi, rental car, or other options if it’s safe to take it.
Also, think about other ways to save money. “I save all the gift cards I get for Christmas and birthdays,” says Gillians, who says she saved $300 on airfare for her next trip using three airline gift cards.
Check for offers. You may qualify for discounts through employment, credit cards, or other means. For example, if you have a AAA or Warehouse Club membership, you may qualify for rental cars, hotels, or tickets to sporting events and theme parks. Some credit cards offer discounts on purchases at certain merchants. This option can allow you to save money on dining, hotels, and more if you pay for your purchases in full and don’t let debt get in the way of your travels.
