6 Steps for a Guilt free and Debt Free Vacation.

With the holiday season just around the corner, most of us are already planning for our vacations. I bet most of us have already booked the air tickets and are busy planning the smaller details of the travel.

Guilt Free Vacation

Vacations can be a bliss and free of guilt, if they are paid from the savings set aside for the vacation, and the biggest comfort would be that you don't have to worry about the huge credit card bill waiting for your return.

When we use our credit card for paying our vacation expenses, we usually cannot pay it back in one shot when we return from the vacation, so we pay it over a period of 6 -12 months if not more!!

Young couple calculating their domestic bills at home

When this debt is paid off, we are ready for another vacation and then the cycle continues. The credit card companies usually charge 35 % - 40 % interest on the credit extended along with exorbitant service and currency exchange charges.

As a result, the cost of our vacation goes up by 30% - 50%, depending on how soon we pay back the credit card company.

Just imagine how much more fun you could have had with the extra 30%-50% money during your vacation.Observation Wheel, Hong Kong

You could have flown business class of first class instead of the economy class, or you could have stayed in a better hotel room, or you could have spent more on shopping, instead you are paying the money as interest to the credit card company.

IS there a way out? YES there is!!! by following the simple steps listed below;

6 Steps for a Guilt free and Debt Free Vacation

Step 1 : Skip


If you have not already planned for your vacation this year, talk to your family convince them, and together as a family decide to skip the vacation this year.

I know it is a difficult decision, but bear in mind that it can make all your future vacations bliss and guilt free.

If you have made the bookings then you can start planning for your next vacation.


Step 2 : Set your Savings Goal


Whatever money you were planning to spend this year on vacation, multiply it by 1.5, and set it as goal for saving for your next vacation.

for Eg : if you were planning to spend AED 20,000 for vacation this year, multiply it by 1.50, the result would be AED 30,000/-.

This is your savings goal for your next vacation.


Step 3 : Automate your savings


Setup a E-saver / Active saver / Smart saver account ( Online savings account, which does not have a debit card and has restrictions on withdrawals), and setup standing instructions from your salary account for your savings goal / 12 to be credited to the E-saver account every month.

So if your savings goal is AED 30,000 then you must transfer AED 2500 per month.

Most of these online savings accounts offer interest rates up to 2.50 % on you savings with them, as a result you would have saved AED 30,409 at the end of 12 months.


Step 4 : Spend on cash only 


Use only the money you have saved for the holiday you. Don't give in to the temptation of spending on credit cards. If possible keep your credit cards at home.


Step 5 : Buy Travel Insurance

Although travel insurance cannot help people avoid misfortunes during their travels, it offers consolation in the form of monetary compensation, which can be very useful in many situations. 
Most travel insurance companies offer travel assistance and 24-hour emergency services to help their customers deal with unfavorable situations during their vacations.
If you meet with an accident or lose your travel documents, you can seek assistance from your insurance company.
The company will offer the best advice or contact local emergency services to help you solve your problems in the shortest time possible. - https://www.travelinsurancereview.net

Step 6 : Start again 

6. Come back and start fresh savings for the next year's holiday.


Follow this cycle to enjoy wonderful holidays every year, guilt free, debt free and more importantly interest free...

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