Lite Rock 105 & Washington Trust's Money Minute Blog
LiteRock 105 & Washington Trust are happy to bring you tips and information every weekday on how to keep your finances in order and safe. Check back every day as we give you our on-air audio reports from Jones & Heather in the Morning and Tony Bristol, our blog and your comments. We're here to help your financial present and future.
Planning a Vacation – Save Now or Pay More Later
Planning a vacation is fun. And with a little financial foresight, you can help ensure that it’s everything you want it to be – fun, carefree, and memorable.
As tempting as it may be to just charge your vacation on your credit card, the costs of doing so can be significant. Consider the following:
If you’re planning a $7,500 vacation and save for 12 months, your total cost could be closer to $7,400 because you will earn interest during the year.
Conversely, if you return from your vacation owing $7,500 on your credit card and then pay it off in 12 months, your total cost could be closer to $8,200, depending upon the interest rate on your card. Now couldn’t you find better ways to spend the $700 that is going towards interest – say, like extending your vacation a couple extra days?
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