by Ann Marie Dwyer

Created on: December 13, 2008

Three out of four Americans pay for their vacations with credit cards. Credit cards offer convenience in tracking spending and having financial security while traveling. They provide a statement showing where money was spent and are safer than carrying cash.

The number one consideration for choosing a vacation destination is affordability. Before you give in to the convenience of paying for your travel, hotel, entertainment and food with your credit card, learn how to stay out of debt.

Vacations plans differ in price, but the average American vacation costs nearly $2,000 for travel and accommodations. Reserving flights and hotels with a credit card is the most preferred method of payment, for both sellers and consumers.

Of those three credit card vacationers, at least one will take more than three months to repay the charges on the card. Meet John P. Creditcardholder. He is in specific danger of spending more than he can afford. How?

The Package

John found a perfect vacation package for his family. Four days and three nights in a resort and air fare is $1,800. He secures the reservation with his credit card, knowing he can spend $470 per month for the next four months without straining his budget. Or can he?

The Extras

When the plane lands, John and his family take the shuttle to the resort. His wife wants to shop. To save on cab fare, John rents a car and hands his credit card to his wife for the day. He has now spent another $400 before she buys anything.

When she gets back to the hotel, she has spent $300 on souvenirs and $50 on food and snacks for herself and the children. The family goes out to dinner and a show for $120. Before nightfall, John's affordable vacation sports a price tag of $2,670.

Incidentals

The next two days are spent inside the resort and have a meager price tag of just over $200, spent on food and small purchases, like souvenirs and items the family forgot to pack. The resort has quietly charged his credit card, for the twelve telephone calls his daughter made back home, an additional $24. As well, they add taxes, booking fees and concierge gratuity of $170.46.

Time to go Home

Before returning the rental car, John takes the family to see some local sights, out to lunch, on a tour and to a museum for a total of $180. He fills the car with gas for $25 and returns to the rental center. He has gone over the mileage limit and pays an additional $40 for the car.

Restful Vacation?

John comes home rested, feeling like he has pulled off the perfect, budget-minded

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