Should I Travel or Focus on Debt Repayment?Jun 27, 2018
Have you been bitten by the travel bug now that summer is here? You’re not alone. Chances are very good that many Canadians are hoping to hit the road or hop on a plane — but are also wondering whether it’s the smart thing to do if they’re carrying debt.
Here’s a preview of what our LITs (Licensed Insolvency Trustees) have to say in our new podcast about travelling vs repaying your debt this summer.
When it’s okay to travel
If your debt is the long-term variety like a mortgage or a car loan, it’s probably okay to take a well-earned vacation this summer. Travel is also okay when you’ve planned ahead and saved. Another green light: when you’ve created a vacation budget to accommodate for these extra expenses.
When it’s better to focus on debt relief
Do you owe a lot of high-interest credit card debt? What about your Home Equity Line of Credit (HELOC)? Do you have one or two bank loans? When you’re carrying these types of debt, it’s a good idea to put vacation plans on hold and focus instead on paying down your debt.
Can you do both?
Cutting back and opting for a “skinny” vacation is one tip if you want to enjoy a holiday without abandoning your commitment to reducing your debt load. Find ways to cut costs by opting for a staycation or looking for last-minute travel deals. Or you can simplify your getaway — reserve a campsite instead of a cottage or an Airbnb apartment instead of a resort hotel.
Check out Mapping Megan — these travel bloggers have some great tips for traveling while you’re also dealing with debt.