Pros and cons of putting travel expenses on a credit card for vacation – KYMA

Reporter: Kristine Lazar

LOS ANGELES (CBS) – The summer travel season kicks off at the end of the month. Millions of Americans are making vacation plans and figuring out how to pay for those trips.

Deanna Peart is returning from a trip and will be headed out again this summer for a cruise.

“I’m excited but I’m dreading paying for my ticket,” said Deanna Peart who’s taking a summer vacation.

She saved up but admits the vacation will cost a little more than she has and that extra will be debt on a credit card.

“I want to enjoy my life therefore we have to have vacations to enjoy time,” shared Deanna. “Yeah, it’s worth it.”

Others also believe it’s worth it.

In a Bankrate survey, 36 percent of people say they’re willing to go into debt for their vacation, and many plan to put it on a credit card.

“I don’t want to tell people they can’t have any fun, but I do worry about the high cost of credit card debt,” expressed Ted Rossman, Bankrate.

Bankrate’s Ted Rossman said that’s because people who don’t pay off the card face interest rates of around 20 percent. According to TransUnion, the average American is carrying more than $6,000 in credit card debt.

“If you’re only making minimum payments towards the average balance at the average interest rate you’re already gonna be in debt for more than 18 years and pay close to $10,000 in interest,” stated Rossman.

Ben Cohen and Emily Fishman are traveling for work and don’t have plans to take a personal trip this summer. The two are avoiding debt by staying local.

“We just kind of like get our joy from, you know, what we have right in front of us as much as we can,” said Emily Fishman who’s planning a staycation.

They’re not alone. 12 percent of people surveyed tell Bankrate they too are planning a staycation this summer.

28 percent of Americans say they’re not taking a summer vacation because they can’t afford it.