Often people face the stress of two debts at a time. Though it is tough, but they have to keep clearing their way to reach out for more! And same goes for travel. You wish to keep clearing out your debt, but you never want to give up on your travel dreams. While experts suggest to clear off the debt before travelling as you don’t wish to go deeper into debt, but still you have ways to balance both these objectives.
Two travelling rules while you’re in debt
- Do not undergo more debt for travelling
- Follow your debt repayment plan strictly.
A Piece of Advice- Neither should your travels set you back, nor should they undo your journey of debt payoff. Try to make your debt low interest or 0 interest while travelling!
There are financial institutes that charge 0% interest for a particular period of time. Yes, banks do offer 0% interest for the introductory period of 18 months, when they allow you to transfer your loan balance to credit card. But the rates shoot up at the end of the 18 months. If you can manage such type of debt repayment then go for it.
Prioritize your debts
If you’re already clearing out your debts, then possibly, you may know how to prioritize them. But if you’re planning to go on a tour, then prioritize it by keeping your tour goals in mind.
If you contribute regularly to your monthly debt payouts and then opt for travel, then it won’t make any difference. Basically, it is the balance between your responsibilities and desires!
Look up for high priority debt
While prioritizing your debt bad debt should be kept on top. Whether the debt is good or bad, you just need to pay them off as they are eating your finance in guise of interest. But you should also pay attention to the length of the payout. If it is a small debt, then it is advisable to clear it out and then move for a vacation.
But every person’s situation is different, so how you choose to plan your debt along with travel may differ. Enlist all your debts and then decide which debt needs to be paid off first. Make sure you rank the high interest debt first. Also consider the fact of how long you’ll be paying your debt repayment and how much interest you’ll be paying.
Calculate your vacation costs from beforehand
Some amazing tips for a debt free dream vacation are:
- Select the number of days for which you’re planning your vacation and the place where you’ll go
- Calculate the cost of accommodation, transportation and attractions
- Draft a budget for food
- Add them all and find out how much you need to save monthly for it to be true!
Go for a debt cation
If your dream holiday is way too expensive, then maybe you got to compromise it. go for a smaller and modest holiday. Try for a debt-cation. By this, it is explained to draft a vacation away from your normal life with some decent spending.
And, if not, then just go for the best consolidation loans which fit your debt condition and set aside a specific amount of money that needs to be paid monthly for your debt and go for your tour anywhere around the world you desire!