• HOME
  • START HERE
  • BLOG
  • ABOUT
    • About
    • Work With Me
  • RESOURCES
    • Email
    • Facebook
    • Pinterest
    • Twitter

Nomad Wallet

Travel More. You Can Afford It.

You are here: Home / Handling Money on the Road / 2 Golden Rules for Traveling While You’re in Debt

2 Golden Rules for Traveling While You’re in Debt

August 29, 2014 by Deia 9 Comments

How to travel when you're in debtCan you travel while you’re in debt?

Some people would say that it’s irresponsible to do so, that it’s a waste of the money that you could otherwise use to pay off that debt.

But is it really? Is it necessarily irresponsible when someone who is in debt travels?

 

It’s possible to travel responsibly when you’re in debt

If you actually have a big debt, it could take you a long time to pay it off. Depriving yourself of fun throughout all that time is unrealistic and unsustainable. You have a limited amount of self-control; it’s simply impossible to deny yourself everything all the time.

That’s why all healthy budgets — yes, even those that belong to people in debt — have some room for fun. Some people get their fun from eating out, some people simply have to shop and others need to travel.

 

It’s okay to travel when you’re in debt, as long as…

…you remember the golden rule: don’t take on more debt to travel.

Oh, and another one: stick to your debt repayment plan.

 

Rule #1. Don’t take on more debt to travel

Before you decide to travel, check your bank account. You should have enough cash to pay for all your expenses during the trip.

You don’t have to actually use cash to pay for everything; just make sure you have enough cash to pay for all your expenses upfront. If you use your credit card to pay for some things during the trip (as you should — it’s safer and the exchange rates are better), then you should pay off that balance as soon as it becomes due.

 

Rule #2. Stick to your debt repayment plan

If you usually pay $300 per month toward your debt, keep doing that, even while you’re traveling. If this isn’t something you can do, don’t travel.

If you don’t even know what a debt repayment plan is, definitely don’t travel. Sit down with your papers and plan how you’re going to pay off your debt. Figure out how long it’ll take for you to eliminate your debt and how much you’ll need to pay every month. That’s your debt repayment plan. Stick to it.

 

3 little things you may need

As a traveler who’s in debt, you have specific financial needs. The three things below, to some degree, may help you to travel.

 

1. Separate savings account

To make it easier for you to see if you have enough cash to pay for your trip, set up a separate savings account. (Get a free account, of course.) This will help you psychologically see your debt repayment money and your travel money as two separate imaginary stacks.

 

2. Interest-free debt

If you can defer your debt repayments without being charged interest, go for it. (Interest increases your total debt amount — remember Rule #1.) Keep in mind that truly interest-free debt — like certain government student loan programs or loans from your family members — is rare.

Some banks offer balance transfers into loan products, charging 0% interest for a set period of time. For example, the bank may let you transfer your loan balance into their credit card without charging any interest for the 18-month introductory period. If you choose this option, keep in mind that the interest will kick in at the end of the introductory period. Double check your debt repayment schedule to make sure you’ll be able to pay off the balance before then — especially if the non-promotional interest rate is higher than your current interest rate.

 

3. A job abroad

Just because you’ll be away from home doesn’t mean you won’t be able to make any money.

This is not practical if you’re planning a short trip, of course. But if you’ll be gone for months, then you could very possibly secure a job at your destination before you leave. This way, you’ll have a sure source of income during your travels. Just make sure that you’ll make enough money to cover your living expenses, as well as your debt repayments.

Some ways you can make money as you travel:

  • Some ESL teachers get free accommodation from their employers, so they get to save a big chunk of their incomes.
  • If you’ll be leaving your home behind for long-term travel, you can rent it out to get extra income. Some travelers started out doing that and ended up buying more rental properties to fund their travels.
  • If you already work from home like I do, it’s a simple matter of being disciplined enough to work a number of hours per day.
  • Check out this page to get more ideas on how you can earn money abroad.

Like what you've just read?

Get the FREE 7-part You Can Afford to Travel Too email series
+ exclusive updates and travel deals
The Sharing Economy: How to Find the Cheapest Travel Accommodation
The Sharing Economy: Saving on Transportation @SmartyCents

Comments

  1. Casey says

    October 21, 2016 at 8:56 PM

    Great advice! Debt responsibility is important for anyone, especially someone on the road. Happy to say I’m debt free and will be traveling the world in 2017! here’s my story http://www.emotionaltraveler.com/five-steps-to-get-out-of-debt/

    Reply
    • Deia says

      November 11, 2016 at 2:16 PM

      Congrats on getting yourself out of debt! Enjoy your travels. :)

      Reply
  2. Becky Padmore says

    September 22, 2014 at 4:59 AM

    Great advice, the 0% interest loans are a great way to go :-)

    Reply
    • Deia B says

      September 22, 2014 at 4:34 PM

      Thanks, Becky! :)

      Reply
  3. Andreas Moser says

    September 1, 2014 at 1:32 AM

    I actually travel BECAUSE of my debts. By being in other countries all the time I can avoid the bailiff. :-) Especially while being in Italy: http://andreasmoser.wordpress.com/2014/08/02/sue-me/

    Reply
    • Deia B says

      September 3, 2014 at 5:02 AM

      Ha! That must be an interesting story. :D

      Reply
    • Claire says

      January 22, 2015 at 5:49 AM

      Ha! This comment made my day.

      Stay frosty!

      Reply
  4. debs @ debt debs says

    August 31, 2014 at 8:08 PM

    We traveled in the first year of our debt repayment to attend a family wedding in Hawaii. We use points for airfare and saved money from extra income plus cut expenses to make it work. Within a couple of months we were fully back on our debt repayment plan.

    Reply
    • Deia B says

      September 3, 2014 at 5:12 AM

      Thanks for sharing your experience, Debs! Sounds like the trip set you back a little, but you got right back up on your feet. When it’s a big family event, you just gotta make it work sometimes. ;)

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Get exclusive updates and the FREE ‘You Can Afford to Travel Too’ email series

How To…

Avoid Credit Card Fees

Avoid Foreign ATM Fees

Make Payments Abroad

Book Cheap Flights

Save Money to Travel

Get Discounts With Coupon Codes

Stay for Free: House-Sitting

Stay for Free: Home Exchange

Work While Traveling

Categories

thumbnail-afford-to-travel-the-world

thumbnail-travel-more-cheaply

thumbnail-book-cheap-hotels-rates

  • HOME
  • START HERE
  • BLOG
  • RESOURCES

© 2021

Get exclusive updates, money-saving travel deals, and the FREE 7-part
You Can Afford to Travel Too! email series
Don't worry; I hate spam too! Your information will NEVER be shared or sold to a third party.