Yahoo Finance The costly travel mistake 1 in 8 Aussies make
Jetsetters desperate for an overseas jaunt should think twice before booking their holidays with a credit card offering free travel insurance.
Finder credit card expert Amy Bradney-George said this was one of many financial missteps she saw people making when planning a getaway.
“While this may be an attractive perk, it’s not the best fit for everyone as it can come with expensive annual fees,” she said.
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Bradney-George said Australians “can’t wait” to holiday again as travel resumes after COVID lockdowns but not everyone is in the financial position to take these trips.
In fact, a startling one in eight Australians are prepared to borrow money to fund their next holiday,
According to research by the comparison website, 7 per cent of people planned to use a credit card to pay for their next trip and another 3 per cent planned to use buy-now-pay-later platforms to fund their travel plans.
Another 2 per cent will beg their friends and family for money to fund their getaway, or will take out a personal loan.
Men are more likely to go into debt for a holiday than women. Around 15 per cent of men will get a credit card for a holiday, compared to 10 per cent of women.
Around 56 per cent of Australians will dip into their savings to pay for flights, accommodation and other travel expenses.
Tips to keep costs down
Bradney-George offered a couple of tips for holiday-makers looking to keep their holidaying within budget.
Check for travel credit - jetsetters may have credit from cancelled flights, which can be used to pay for an upcoming holiday.
Frequent flyer points - you may have been racking them up over the past few years, and now’s the time to put them to use. There are some frequent flyer credit cards that offer enough bonus points for a flight overseas.
Shop around - travel sales are back but not for long, with high fuel prices expected to force airlines to increase airfares. Get in early to snag a deal.
Automatic repayments - if you plan on taking a credit card, set up automatic repayments to reduce or avoid interest charges.
International fees - some credit cards charge an international transaction fee when you use them overseas, which can amount to around 3 per cent of each transaction.
Don’t use credit cards to withdraw cash - you’ll be charged a cash-advance fee and interest when you do. Take a Visa or Mastercard debit card for cash withdrawals.
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