Give yourself a vacation from debt.
That is what debt elimination expert Jade Warshaw suggests, as Americans reach for their credit cards to pay for travel.
“It is an issue, and at the heart of it, I think it’s this I deserve mentality,” stressed the “The Ramsey Show” co-host during Wednesday’s “Cavuto: Coast to Coast.”
A recent WalletHub survey showed that 46% of Americans are still paying down their credit card balance from last summer.
SOME VACATIONERS EXPECT TO USE CREDIT CARD FOR MORE THAN $5,000 OF SUMMER TRAVEL
Warshaw continued, explaining what Americans must do to get rid of that “I deserve mentality.”
“We need to reframe what we deserve, because I think you deserve a permanent vacation from debt, right? So pay cash for it,” she suggested. “I want you to come back stress-free and tanned, not stressed with more debt and payments.”
Warshaw explained the “vicious cycle” associated with making a purchase with plastic money.
“I think that if you’re going into debt for a vacation, you’re saying I deserve this, and so you buy something that you can’t afford, and you go into debt for it, you start paying it off, but before you can finish, you see something else you deserve, and you buy it on payments,” she explained.
If you’re in a “debt-free era,” she continued, “commit” to using cash to pay for vacation.
“Research it right. Find out how much it’s going to cost, budget to save up for it,” she said.
But for those who are not as financially sound, learn to “get a hold of” your finances.
“First, let’s pay off our consumer debt,” she said. “Let’s save up 3 to 6 months, and then we can start committing to cash vacations.”
Paying for vacation is “twofold” according to the expert who suggests using cash or debit and then, when on the trip, budget the spending money that is needed.
She also provided some advice when it comes to using that spending money.
“I wouldn’t carry too much cash,” she said. “It’s nice to have a debit card because it’s also protected by the same rules as a credit card, so you don’t have to worry about risk.”
Read the full article here
