Three Ways to Pay For Summer Travel Without Going into Debt

Pay for summer travel in advance so you can enjoy the view without worry!

If 2024 and 2025 are any indication, about one-third of Americans will go into debt to travel this summer.  Travel is fun and creates lifelong memories.  Travel can go hand-in-hand with celebrating significant life events or exposing children to other cultures to expand their worldview while their minds remain more malleable.  But going into debt for such a joyful activity can sour the joy of travel.

More than a quarter of travelers in 2024 put their travel expenses on a credit card and did not pay off the balance immediately.  With most credit cards charging between 20–25% interest, that can make a trip cost significantly more than it would have if paid for immediately.

Despite this, a significant portion of American travelers are making their travels more expensive by paying them off after the trip.  This is partially because individuals believe in the importance of making memories regardless of their financial situation, but it is partially because Americans do not know how to budget for expenses that do not occur every month.

Those living paycheck-to-paycheck often do not consider the costs of travel but still (understandably!) want to take a summer vacation.  A credit card gets charged with no real plan for paying it off.  Irregular expenses are more difficult to include in a budget, but there are ways to pay for summer travel slowly over time without paying ridiculous amounts of interest on a credit card balance.

1. Save for Travel in a High-Yield Savings Account

Most of us cannot pay for travel from a single paycheck given our other expenses.  The trick is to start paying for a trip before it happens rather than after.  The best place to do this is in a high-yield savings account.  Contribute a small amount of money each month to spend on annual travel.

For example, if you want to take a trip that costs approximately $6,000 each July, save $500 each month for that trip.  By the time it comes to pay for your travel, you can easily do so because you have the full cost saved in a high-yield savings account.  You will even have a little extra money thanks to the interest accrued in that account!  You can choose to spend it or save it for the next year, when the same trip will likely cost a little more.

Many Americans get stuck with credit card debt due to events like annual travel or holiday spending because these only occur once a year.  Just because they are seasonal expenses does not mean we cannot plan for them.  Saving over time and in advance saves a ton of money by eliminating the interest accrued on debt.  Pay the trip over time, but pay it off over the time before the trip happens!

2. Use Credit Card Points

Instead of charging up your credit card and paying exorbitant amounts of interest on your travel expenses, use the points you accrue from everyday spending on your credit card to pay for summer travel.  We have four nights at a beautiful hotel and spa with two pools overlooking Lake Maggione booked for this summer.  These cost us nothing because we paid for them entirely with points.

Particularly if you only travel once or twice a year, your points can go a long way to paying for your travel.  Daily spending can secure you airline tickets, rental cars, and lodging.  In some cases, points can even cover food if you stay at an all-inclusive like we did in the Turkish Riviera a few summers ago.

As you accrue points, just make sure to pay off your credit card in full every month.  Falling into credit card debt due to everyday expenses can be just as detrimental as credit card debt to pay for a vacation!  Verify that you have enough money to cover your purchases, put those purchases on a credit card, and pay it off each month.  This allows you to enjoy the benefits of credit cards by using points to pay for travel while avoiding the extra cost of debt.

3. Sit Through a Timeshare Presentation

If you are new to credit cards or spend too little to cover your intended travel with points, you can still trade time for travel credit by enduring a timeshare presentation.  Most timeshare presentations are no longer marketed as “timeshare” presentations, but they still exist.  We sat through a Hilton Vacation Club presentation to get a free week at a Hilton property in November.  (All the major hotel brands have similar offerings.)  If you have more hours than dollars, this is a terrific option to pay for travel.  Just do not “invest” in their vacation properties—the math does not math!

While this only pays for the lodging potion of a trip, you can also get creative by using different methods to pay for different parts of your trip.  Sit through a timeshare presentation to cover the lodging, use your credit card points to pay for flights, and save a small amount of money each month in a high-yield savings account to pay for food and adventures.  By splitting your travel spending methodology, you will certainly have enough points to cover only a part of your trip, and you can save a small amount like $50 or $100 each month instead of $500 while still having enough money for a wonderful trip.

Regardless of which method or methods you choose, figure out a plan to pay for summer travel before summer arrives.  Your vacation will feel much more refreshing without the weight of debt awaiting you upon your return.  Allow yourself to fully immerse yourself in your travel experiences and forget your worries by eliminating a financial worry before it exists.