Travelling With Debt: Can It Be Done?

So, you have got a bit of debt, but the travel bug is biting hard. You might be wondering… Can you travel if you have debt? The good news is, yes, you absolutely can! With a little bit of planning and some smart financial moves, you do not have to put your dreams on hold.

In this article, we will cover assessing your debt and financial situation and provide tips and tricks to help you travel responsibly without breaking the bank. Let us dive into how you can make it happen so you can travel without feeling weighed down by your debt.

Assess Your Debt Situation

Before you start packing your bags, let us take a quick look at where you stand with your debt. This step is key to answering the question of whether you can travel if you have debt and making sure you are set up for a stress-free trip.

Types of Debt

You will want to lay out all your debt to understand what type of debt you have. Maybe you have got student loans or a credit card balance. Each type of debt comes with its own rules, like different interest rates and payment plans. Understanding these can help you prioritize which debts to tackle first and see where you might have a little wiggle room.

We also want to highlight that there is both good and bad debt. Debt is a word with a bad reputation, but it shouldn’t be something you must feel ashamed of. Good debt can have a positive impact on your life, like taking on a student loan to better your education and work towards your career.

Calculate Total Debt

We recommend listing out all your debt, whether that’s on your laptop, phone, or with paper and pencil. This will give you a clear view of how much you owe and how you can tackle each one.

Now, let us do some quick math. Add up your total debt, including interest rates and those minimum payments. It’ll also be helpful to note the payment dates or frequency for each one so you have an idea of how much you owe and when.

Knowing your numbers will help you craft a budget that works for both paying down debt and saving for that much-needed getaway. Plus, it might be a good time to explore debt-relief options, which could lower your monthly payments and give you more breathing room.

Evaluate Your Financial Situation

Next, it is time to look at your financial picture. This will help you figure out if you can travel if you have debt and keep everything on track. At the end of the day, we want you to make financially responsible decisions that won’t backfire. We want to ensure that you get on the right track with your finances before adding additional spending.

Calculate Your Current Income and Expenses

Are you tracking your spending? If not, no worries—it is never too late to start! Creating a budget is your first step. It does not have to be complicated; just track where your money goes each month.

You can quickly put together a budget by first writing down how much money you are bringing in each month. This will include all incoming money, such as your employment income, government benefits, or investments.

Once you note your income, you can then list out your expenses to see how much you’re left with at the end of the month. This includes both fixed expenses, such as rent, insurance, or car payments, along with variable expenses, such as entertainment.

When you subtract your expenses from your income, you will see what is left over and if there is room to add a travel fund without skimping out on those debt payments. If you do not have much left, then maybe it is not time to take a vacation. Instead, you can make your travel plans a future goal that you can work towards once you tackle that debt.

Do You Have an Emergency Fund?

Before you get too excited about that next trip, let us make sure you have an emergency fund. It is like your financial safety net—aim for three to six months of expenses saved up. This is separate from your travel fund and will give you peace of mind knowing you are covered if anything unexpected pops up, such as your car breaking down or you lose your job.

Understand Your Financial Goals

Now, let us talk about your big-picture goals. Balancing short-term dreams, like that beach vacation, with long-term goals, like paying off debt or saving up for a house, is totally doable.

Ask yourself, can you travel if you have debt and still reach your goals? With the right plan, the answer is yes! It’s all about finding the balance and creating a plan because the last thing you want is to fall deeper into debt.

If you think travelling may not be feasible in the short term because you must tackle your debt first, then you can make it a long-term goal instead! It’s important to do what’s right based on your current financial situation. That long-awaited vacation can be something you work towards!

Set Up a Savings Plan

Think about setting up a simple savings plan to help you figure out how much to put towards your debt, your emergency fund, and how much you can save for travel. It is all about finding a balance that works for you—making sure you are covered for unexpected stuff while still setting aside money for that future trip.

Of course, you can always try saving methods like the envelope technique!

Tips for Travelling on a Budget

If you are thinking of travelling, there are ways you can make it work even when carrying debt. Who says you need to spend a fortune to have an amazing trip? You can totally explore the world on a budget and still make incredible memories. But can you travel if you have debt and stay within your budget? Absolutely!

Here are some tips to help you travel without banking the bank and negatively affecting your finances:

Choosing Affordable Destinations

Start by picking destinations that are affordable. There are plenty of beautiful places where your money goes further. And hey, do not forget about the hidden gems close to home! A road trip through Canada’s stunning landscapes could be just the adventure you are looking for.

Travel Hacks for Saving Money

When to Book

Here is where the fun begins—finding ways to save! Book your flights in advance and compare prices across various booking sites. Travelling during off-peak seasons can score you great deals, and being flexible with your dates might save you even more. You can consider looking at plane tickets for dates right after summer or the holiday season when everyone is back at school or work.

Finding Cheap Flights

Sometimes you can even find cheaper flights on YYZ deals or various booking sites that could end up saving you a buck or two. Or if you’re thinking of a destination relatively close to where you live, you might be able to get there by bus or train! These options take a bit longer to get to your destination, but you can save a great deal of money.

Budget Accommodation

Skip the five-star hotels and look at affordable accommodation where possible. You can consider looking at hotels or inns a few minutes away from the busy tourist spots where accommodation is usually much more expensive.

Before you book, you should also read the fine print to see if they charge extra resort fees, taxes, parking, and internet. Sometimes they can get sneaky with it by marketing the rooms for cheap but end up tacking on those extra charges at check-out.

If you have a friend or family member that you can stay with, that’ll be even better! You can save on accommodation altogether. Maybe take them out for dinner as a kind gesture to say thank you!

Use Cash Where Possible

If you are travelling internationally, avoid using your credit card as most cards will charge a foreign transaction fee that gets tacked on. This is usually around 2%. It can be easy to overspend and pile up on the extra fees when you are enjoying yourself and tapping your card wherever you go!

Just be mindful when you are carrying cash, especially in busy areas where theft is common. The last thing you need when travelling with debt is to have your money stolen unexpectedly.

Other Ways to Save Money

Another way to save money when you are travelling is by looking into taking public transportation and finding free activities to make your trip affordable and authentic. It will be a great opportunity to learn more about the destination you’re headed to, while also taking advantage of whatever is available for tourists!

Be sure to watch YouTube videos and do your research to see where discounts and deals are available. Sometimes you can save a couple of dollars by booking activities online or ahead of time, or even find out that you can get perks from work or memberships like Costco and CAA. Saving a dollar here or there can add up and help you keep more of your money in your pocket!

When looking at food options, you do not have to fine dine. You can save money by finding convenient stores around to buy staples like water and snacks. This will help ensure you are not paying the tourist price on basics! Some destinations will even have stores like Seven Eleven where they sell hot foods at an affordable price.

Balancing Travel and Debt Responsibility

So, can you travel if you have debt and still be smart with your money? You bet! The trick is to find the right balance between enjoying your travels and keeping up with your financial responsibilities and not overspending.

Setting Realistic Expectations

It is all about being realistic with your travel plans. Sure, maybe this trip will not be a five-star luxury, but that does not mean it will not be amazing. Focus on the experiences that matter most to you—after all, those are the memories that last.

Avoiding Debt Accumulation for Travel

This one is important—do not add more debt just to fund your trip. While a recent survey shows that it is tempting to use a credit card or take out a loan, it is not worth it in the long run.

This goes back to looking at your budget and knowing how much you can spend on your travel plans. Once you know how much you can afford to spend without piling on more debt, you can break down how much you can spend on transportation, accommodation, food, and entertainment.

And if you cannot travel this year because you want to tackle your debt first, that is okay too. It is all about being realistic and thinking of your long-term financial goals. If you are not in a place to take time off work and travel, then use it as your motivation to lower your debt and improve financially!

Prioritizing Experiences Over Luxury

When you are on the road, remember that the best memories often come from simple, meaningful experiences. Whether it is hiking a mountain, exploring a new city, or meeting new people, these moments do not require a luxury budget.

Considering Alternative Travel Options

If you cannot travel anytime soon because of your debt, there are alternative travel options that you can still enjoy!

Think outside the box with your travel plans. Road trips, camping, or even house-sitting (or home exchange) can offer incredible experiences without the hefty price tag. Sometimes, the best adventures are the ones that do not require a passport.

How Farber Can Help Manage Your Debt

If you are not sure where to start, we are here to help. At Farber, we offer personalized debt-relief solutions that can help you manage your finances, so you can enjoy life (and travel!) without the constant worry of debt.

Ready to take the next step? Contact us today and let’s explore your options together.