Americans avoiding going into debt for vacations this year, survey shows
May 23, 2016
About eight in 10 Americans who plan to take a vacation this summer will pay for some of it with savings, according to a CreditCards.com survey.
Fifteen percent said they’re financing their vacation with a credit card and 13 percent plan on using credit card rewards points or miles.
About 44 percent of Americans are taking a vacation this summer, and the majority isn’t planning on going into debt for it. About two-thirds of those vacationing this summer, 67 percent, are expecting to pay off their vacation in a month or less. Only 11 percent said that it will take four months or more.
“Most Americans want nothing to do with debt these days,” said Matt Schulz, CreditCards.com senior industry analyst. “With the Great Recession still fresh in their minds, people are watching their budgets more closely and making sure they’re not overspending, even if it means scaling back on vacations – or skipping them entirely. If they can’t pay for the trip quickly, they just won’t take it.”
For those who want to take hold of their debt, Schulz recommends creating reasonable budgets and tracking all expenses. He also suggests seeking out 0 percent balance transfer offers as well as negotiating lower interest rates on your current credit cards, if possible.
Additional highlights from the survey:
- Those aged 65 and older are the most likely to put a vacation on a credit card; millennials are the least likely.
- Affluent households and college grads are the most likely to use credit card rewards points to pay for their summer vacations.
- Midwesterners are the most frugal; 76 percent plan to pay off their summer vacation in a month or less.
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