Perhaps your summers hold fond memories of strolling along the beach, hiking mountains or trying new foods at a destination hundreds of miles from home. If so, are you planning to keep the travel streak going this year? Would you go into debt for it?
A new Bankrate survey found that only about half (53 percent) of Americans are planning a summer vacation in 2024. Of those who plan to travel this summer, more than 1 in 3 (36 percent) are willing to go into debt to pay for it.
On the other hand, another half (47 percent) of Americans plan to skip their summer vacation this year, citing affordability as the main issue (65 percent).
Some summer travelers plan to take on debt for their vacation.
More than one-third (36 percent) of aspiring summer vacationers said in the survey that they plan to use debt to pay for their travels.
This is par for the course when compared to another March 2024 Bankrate survey that asked Americans whether they’d go into debt to pay for fun this year. In that survey, 27 percent said they’d be willing to go into debt to travel, 14 percent to dine out and 13 percent to attend a live entertainment event this year overall — not just in the summer.
Ted Rossman, Bankrate Senior Industry Analyst, cautions against racking up expensive credit card debt.
“I don’t want to tell people they can’t have any fun, but I do worry about taking on debt for discretionary purchases such as vacations, especially with credit card balances and rates at record highs,” he says.
A majority of summer travelers will pay with a credit card.
Credit cards are summer travelers’ preferred payment method — 62 percent will use a credit card for at least some of their trip expenses. Forty-three percent of summer travelers plan to use a credit card that they pay in full, and 26 percent plan to use a card and carry the balance over multiple billing cycles. Some people are doing both.
Interestingly, a January 2024 Bankrate survey found that, of the 44 percent of credit cardholders carrying debt from month to month, 2 in 3 cardholders try to maximize rewards. If you can pay your balance in full, a travel credit card is a great way to earn while you spend and put rewards toward future trips.
