How to Save Money for Your Vacation

The cost of a vacation continues to rise every year. Forbes magazine published a research piece highlighting the average price of round-trip economy flights ($427.20), mid-level hotel stays per night ($167.16), car rentals per day ($49.17), and eating three main meals out ($104.30) on a daily basis. Needless to say, you will want to save money to thoroughly enjoy a relaxing getaway. These are money-saving tips that can help reduce your reliance on vacation payment plans. 

• Start a vacation savings account
• Have a percentage of your salary electronically transferred into the savings account
• Invest in a certificate of deposit (CD) that will mature before your trip
• Eliminate expenditures such as underused subscriptions
• Use credit cards that offer rewards or cash-back benefits

Cutting out unnecessary or frivolous expenses saves more money. Those dollars could easily be diverted into a vacation savings account. Given that Forbes estimates a solo, three-day trip at $1,400 and half of families budget for a minimum of $4,000, every dollar counts.

For more tips for a budget-friendly escape, review our blog, "How to Save Money on Your Dream Vacay: Budget-Savvy Tips for Travelers."

Vacation Loans: Know Your Financing Options

Vacation loans have proven to be cost-effective and budget-friendly solutions to pay for solo trips and family getaways. The best options involve establishing vacation payment plans that can be painlessly rolled into your monthly expenses. By cutting down on wasteful spending habits, people who take out vacation loans barely notice the effect on day-to-day finances. But as consumers, it’s crucial to maintain a buyer-beware mindset when presented with point-of-sale options.

Be Careful With Buy Now, Pay Later Vacation Payment Plans

Also known as “point-of-sale” deals, buy now pay later programs are not always as beneficial as they seem. Companies provide this option to entice consumers to purchase a product or sign up for a travel package on the spot. They can be a quick sales hustle that involves stressful repayment terms and escalated costs, leaving members of our community with a severe case of buyer’s remorse. These are just some of the reasons why buy now pay later programs prove too expensive for vacation planners.

• Hidden Costs: Many point-of-sales options include fees only found in the fine print.
• Interest Rates: Many programs feature zero interest. However, consumers later find out that unless they pay the total amount off in a short period, a landslide of interest hits the balance.
• Repayment: The payment schedules for so-called low-interest programs tend to be aggressive. Companies bank on the fact that consumers struggle to meet the deadlines.
• Cost Overruns: When people exceed their buy now pay later funds, they are often forced to incur credit card debt or withdraw money from earmarked savings accounts.
  

While Vacation payment plans may seem misleading without the proper research, there are many financial solutions that are clear, concise, and budget-friendly.

Take a deeper dive into the potential issues you could face with our recent blog, "Buy Now Pay Later: The True Cost of Deferred Payments."

Try Fast Cash For A Quick Trip

There are two types of quick- or fast-cash loans available to consumers. One, commonly called a “payday loan,” can be secured by writing a post-dated check that includes a hefty fee to a high-interest lender. The total amount, plus upwards of 30 percent interest, must usually be repaid in one month. If you don’t come up with the money, it may be rolled over for four more weeks after paying another hefty fee. These are obvious money traps.

Another quick cash loan option involves working with your local credit union to get speedy approval for a travel loan. These “quick cash” borrowing options are primarily determined by your membership, rather than credit score. Generally used as short-term loan products, quick cash borrowing programs can be ideal for taking a last-minute trip or weekend getaway. Explore what fast cash loan options your trusted local lender may offer.

Consider a Personal Loan For Vacation

When personal loans are used to fund memorable getaways, we tend to refer to them as “vacation loans.” Qualified borrowers who take advantage of these fixed-interest rate, lump sum borrowing options can use them for wide-reaching purposes, such as a dream getaway, wedding expenses or to build an in-ground pool.

In terms of vacation loans, these unsecured options offer flexible repayment schedules and installments that stay the same. When working with an experienced local lender, you can anticipate reasonably low-interest rates, nominal processing costs, and no hidden fees.

One caveat to keep in mind before applying for a personal vacation loan involves your credit history. Because you do not need to put up collateral, the interest rate you receive is determined mainly by your credit score and debt-to-income ratio. Consider getting a copy of your credit report, fixing any errors, and tweaking your financial posture to get the lowest interest rate possible. 

For more benefits of using personal loans, review our blog, "4 Perks of Using a Personal Loan for Vacation Expenses."

Explore the Benefits a Credit Card Can Offer

Low-rate credit cards with rewards and cash-back programs may be a good way to cover some travel expenses. If you run over budget, the right credit card minimizes the repayment cost.

Use Your Equity with a HELOC

While not everyone is comfortable taking out a loan using their home as collateral, a home equity line of credit (HELOC) features some of the lowest interest rates available. It leverages the difference between the outstanding mortgage balance and the fair market value of a property. Using this revolving line of credit (similar to a credit card) for a once-in-a-lifetime family vacation (or any other expense) could be a financially savvy decision.

For a more in-depth look at these vacation loans, review our blog, "Seize the Moment: 4 Vacation Loans to Finance Your Ultimate Escape."

After you decide a vacation loan will help you reach your final destination, review our recent blog on using travel loans wisely.

Ways to Save Money While on Vacation

Perhaps the best way to save money while on vacation is to stay true to your budget. Here are a few more handy tips to help you save money and stay within your vacation budget parameters.

• Get the best currency exchange rate possible by avoiding exchanges at airport kiosks.
• Pack snacks and water when traveling or sightseeing to avoid being overcharged.
• Use AAA and senior citizen discounts, among others.
• Take advantage of low-cost and free attractions.
• Be thoughtful about your transportation choices.

You may be able to find discount coupons online that you can download to your phone or print out. Although Groupon ranks among the household names in this industry, there are plenty of others.

How to Avoid Falling Victim to Identity Theft While Traveling

Acquiring identity theft protection when traveling is considered a fundamental step. Our Kasasa Protect program¹ provides 24/7 monitoring, credit reporting, and lost-wallet protection, among other benefits. These are a few practical steps you can take to avoid falling victim to identity theft criminals.

• Secure your passport when traveling by keeping it close at all times.
• Lock your passport in the hotel safe.
• Avoid accessing public Wi-Fi by adding a private hotspot to your phone or handheld device.
• Divide cash and credit cards in case your wallet or purse is stolen.

Remember to be cautious about strangers looking over your shoulder when logging into a phone, laptop, or using an ATM. And never post selfies on social media until you return home. That tips off burglars that no one is watching your belongings at home.

Identity theft can put a damper on travel! Review our recent blog for more tips to stay safe, "7 Tips to Prevent Identity Theft While Traveling." 

Allegiance Has the Travel Loan Options You Need

If you anticipate traveling abroad or are planning a vacation in the U.S., Allegiance offers a variety of programs to help you maximize your trip in a cost-effective fashion. Our credit cards, HELOCs, Fast Cash, and low-interest Personal Loans are great options for qualified borrowers. Contact us today to discuss the best way to finance the vacation you deserve.

1. This disclosure contains the rules that govern your optional Identity Fraud Protection And Restoration Services through Kasasa Protect™ as of March, 1, 2017. Optional Add On Service:
Allegiance Credit Union offers Kasasa Protect, an optional Identity Fraud Protection And Restoration Service that includes identity theft, fraud protection and breach resolution through a separate, third party that can be added to your Kasasa [Cash®, Cash Back®, Tunes®,] [or other] account. This add-on service (a) requires your explicit authorization to add these Identity Fraud Protection Services (‘opt-in”), (b) charges a separate monthly fee and (c) can be cancelled at any time.

Kasasa Protect: Identity Fraud Protection And Restoration Services:
“Kasasa Protect: Identity Fraud Protection And Restoration Services” collectively includes the following comprehensive services (collectively “Services”):

(1) Credit Services: (a) Reports: an annual credit report from Experian; (b) Scores: a monthly credit score from Experian; and (c) Plotter: a visual twelve (12)-month history of the consumer’s monthly credit scores from Experian.

(2) Monitoring Services: (a) Public Records: Monitors name, address & Social Security Number (SSN) across public records; (b) Dark Web Monitoring: monitors across social networks, chat rooms & black market web sites for personally identifiable information including social security numbers; phone numbers; email addresses; bank account and routing numbers; credit and debit cards; and medical identification numbers; (c) Credit Bureau: monitors for and will provide an email if credit inquiries, new lines of credit, derogatory credit, name changes or changes in address are detected in the consumer’s Experian credit file; Credit monitoring occurs only on the credit file associated with the purchasing consumer, and does not monitor, compare or cross reference the credit file associated with the purchasing consumer to any other credit files maintained by the applicable credit bureaus.

3) Resolution Services: (a) Recovery Services: a professional Identity Recovery Specialist will assist the consumer identify, dispute, expunge any fraudulent activities and (b) Lost Wallet Services: Cancellation & replacement assistance for lost or stolen credit cards and personal documents lost due to loss or identity theft.
Terms & Conditions:

Kasasa Protect services are provided by CSID, a part of Experian Information Solutions, Inc. (“Experian”). There are two (2) Kasasa Protect terms and conditions, one governing the program’s Services and the other governing the program’s online portal, which you must agreed to:

(1) Services: Terms & conditions can be retrieved at a Allegiance Credit Union branch location
(2) Portal: Terms & conditions can be retrieved online by using the following link: https://secure.kasasaprotect.com. (“Portal”)

Fees:
Kasasa Protect services are provided for a monthly fee of $9.99, or $7.99 if you are a Kasasa accountholder. Kasasa Protect is available to a secondary accountholder listed on a joint account for an additional monthly fee of $5.00. Fee(s) will be automatically debited from your account on the third (3rd) of each month. Fee(s) begin on the third (3rd) of the month following your enrollment date and will end one (1) day after Allegiance Credit Union has processed your cancellation request.

Changes & Modifications:
Kasasa Protect’s Services, fees, and providers are variable and may change with proper notification from our credit union or Kasasa, Ltd. Changes in terms, conditions, services, fees and / or providers, if any, will be posted on the Kasasa Protect site located at https://secure.kasasaprotect.com. We encourage you to refer to this site on a regular basis for Services information.

Requirements:
To utilize Kasasa Protect you must: (1) be eighteen (18) years of age or older, (2) be a resident of the United States or any of its territories, and (3) register and maintain your unique email address (joint accountholders must each provide unique email addresses for this service) via the Kasasa Protect online portal.

Enrollment:
To receive Kasasa Protect’s Services, you must (1) agree to the Kasasa Protect Services’ Terms & Conditions and (2) establish the Services’ monthly billing and (3) provide an accurate email address. Upon completing these three activities you will be enrolled in the program. (“Enrollment”). The date upon which these activities are completed will be your enrollment date (“Enrollment Date”).

Verification:
Within one (1) business day after Enrollment, Kasasa Protect will provide you with an email that includes a link to https://secure.kasasaprotect.com and your subscriber number. After entering your subscriber number, you must verify your personal information. You agree to provide accurate, current and complete information about yourself. You agree to not misrepresent your identity. You also agree to maintain and update this information, including your email address on a regular basis to ensure its accuracy. Failure to provide and maintain accurate and complete information may prohibit your use of the Services or result in errors in information generated. (“Verification”).

Portal Alerts & Notifications:
Upon verifying your personal information and agreeing to the terms and conditions associated with the Kasasa Protect portal, you will be able to receive alerts and notifications through the portal. Email notifications will be sent to the email address you maintain at https://secure.kasasaprotect.com. You understand, acknowledge, and agree that in order to receive the full complement of Services, including receiving Services’ alerts and notifications via the Kasasa Protect portal, you must first verify your identity and register and maintain your email address at: https://secure.kasasaprotect.com.

Availability of Services:
All items under these three (3) comprehensive services are available to you as identified below.
Credit Services: After verification, you will be able to view all items listed under Credit Services, including credit information and alert details via the portal.
Monitoring Services: All items listed under Monitoring Services will begin upon Enrollment. Viewing of Monitoring Services alerts is available upon Verification.
Restoration Services: All items under Resolution Services are available upon Enrollment.

Cancellation:
You may cancel your Services at any time by notifying your financial institution of your decision to cancel. Written notices should be sent to Allegiance Credit Union, 4235 N Meridian, Oklahoma City, OK, 73112. Verbal requests should be directed to 405-789-7900. Cancellations may take one (1) or more business days to process. When cancelling, your then current month’s fee will not be reimbursed or prorated. The Services’ monthly fee will not be charged for the following month after a cancellation request has been processed by your financial institution.

Closure of Checking Account:
Should your checking account be closed by you or Allegiance Credit Union, any add-on products / services associated with that account, including Kasasa Protect, will also be terminated at the same time. Your then current month’s account and/or Kasasa Protect fees will not be reimbursed or prorated. The monthly fee(s) will not be charged for the month following termination.

Legal Notices:
(1) Federal Notice. Even without our plan, you have the right to a free credit report from each of the three major credit bureaus through annualcreditreport.com or 877-322-8228, the only authorized source under federal law. (2) Allegiance Credit Union Notice. Allegiance Credit Union shall not have any liability for the accuracy of the information contained in the credit reports provided through these Services including any liability for damages, direct or indirect, consequential or incidental. Kasasa Cash, Kasasa Cash Back, Kasasa Tunes, and Kasasa Protect are trademarks of Kasasa, Ltd., registered in the U.S.A. CSID and Experian are registered trademarks of Experian Information Solutions, Inc.