In Northern Ireland the credit crunch as taken its toll on families. They have been struggling to pay for the increase in fuel as well as other costs that have increased. This has created a strong Euro, but it has also increased the cost of holidays abroad. For many this leaves either severe debt to try going on vacation with the use of credit cards or travelling locally.
British Airways and Virgin Atlantic are just two companies that have increased their holiday flights. The flights have increased 3 to 13 Euros, and one way flights are as much as 10 to 63 Euros higher than a month ago. There are certainly ways to try and make a holiday cheaper for those in Ireland, but one thing you should be cautious of is the credit cards.
Credit cards are an easy answer to getting a vacation. There are several rewards programs for you to earn flights all year long if you have the right card. These air miles cards in Ireland earn about 1 mile per Euro spent. Some of the cards are a little harder to earn miles on, but the point is the rewards exist. The use of the cards should be specific though. The cards should only be used for items that can be paid off every month. A good practice for air miles cards is starting with a zero balance and using the card to pay off monthly bills like mortgages and utility bills. This way you are earning points, but you also have the money to pay the balance off every month which means you don’t pay interest.
There are also travel rewards cards that can be used. These cards offer discounts when you use the card for booking hotels, flights, or car rentals. Most of the travel cards also have free travel insurance for the cardholder. These aspects are great especially when the holidays abroad are very expensive. However, they can also be a trap.
It is important to use the credit cards sparingly so that you don’t pay high interest rates. The interest rates have been increasing in the last six months with the credit crunch making it more difficult to pay cards off after they have been used.
The cards can be used for the purchases that offer you discounts as long as you have the money to pay them off. For all other expenses use local currency or traveller’s cheques. Some debit cards are helpful as they don’t incur the fees that the credit cards do. But, be careful with debit cards while some don’t offer as high a fee, others will. Check with your bank before leaving on holiday regarding the terms and conditions of credit and debit cards to see what fees you might have to pay.
There is no sense getting worse into debt if you have the cash to spare for the holiday. If you don’t then stay close and use the cards for Ireland travel rewards.
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