Travelers Planning To Pay For Summer Vacations On Credit

Nearly three quarters of Americans will spend more than they planned on their summer vacations, according to a new survey by Experian, a credit reporting company. Much of that overspending will end up on credit cards.

Respondents said they planned to spend an average of $2,275 on their vacations. Nearly 35% of those have not saved anything in advance to pay for it. Of those who have saved something, 46% say they have paid for vacations on credit when they didn’t have the cash to pay for the trip they wanted. Even with advance planning, 68% say they usually spend more than they planned.

“People want to come home from vacation with happy memories, not unmanageable credit card bills,” said Guy Abramo, president of consumer business at Experian Consumer Services in a release. “Racking up excessive credit card debt without a plan to pay it off can put people in a bind that could affect their financial health and credit status for years to come.”

Millennials seem particularly susceptible to the lure of easy credit. On average, they plan to charge $1,187 for summer getaways.

Financial planners with the company say the buddy system is the best way to ensure a fun vacation doesn’t lead to months or years of debt. Travelers should make a budget for what they can afford, and have someone on the trip help hold them accountable for their spending.

Read more details on the survey here.