A friend of mine in the retail business, in a tourist town, explains how he sees big spending by vacationers. How are they paying for this?
Some people could find themselves wrangling with summer travel bills well after Labor Day.
To that point, 36% of Americans said they plan to take on debt in order to travel this summer, according to a March survey from Bankrate. The payment methods for summer travel expenses ranged from personal loans (5%) and buy now, pay later services (8%) to borrowing from family and friends (6%).
Additionally, 26% of summer travelers said they intend to use a credit card and pay over for the vacation over multiple billing cycles.
“The reason that’s worrisome is because the average credit card charges more than 20%, which is close to a record high,” said Ted Rossman, a senior credit card industry analyst at Bankrate. […]
Travelers can also save by choosing to visit locations at different times of the year. Lower demand usually leads to lower prices.
“Zig when others zag,” Rossman said. “Maybe travel in the offseason or the shoulder season, or drive instead of fly, or travel midweek instead of on the weekend. If you can let the deal dictate the destination, that can really help you out. Flexibility is key.”
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