How to finance a summer vacation

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Summer can be an expensive time to travel, which makes it hard to budget enough money for your vacation. Here are three ways to pay.

A summer vacation can feel like a seasonal rite of passage — a sacred time to break away from the demands of everyday life in favor of fun and relaxation.

Even without higher prices, travel is tough to budget for, says Jake Northrup, a certified financial planner in Bristol, Rhode Island. “I certainly understand sometimes the best decision that you can make is not the most financially optimal one, and that’s OK,” Northrup says.Credit cards, ‘buy now, pay later’ and vacation loans The majority of travelers this summer plan to use a credit card to cover travel expenses, according to a survey conducted by The Harris Poll for NerdWallet, though most plan to pay it off in full within the first billing statement.

Companies like Affirm AFRM and Uplift offer buy now, pay later plans for travel. These plans divide your purchase into equal installments that you pay over time, and interest rates vary.

 

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