top partner

for CFD

Image source: Getty Images

Travel can be pricey at any time of the year. And as we approach the holiday season, we’re likely to see even higher prices for things like airfare and lodging.

Hopper reports that airfare for Thanksgiving is expected to average $268 per ticket this year. That’s actually a 14% drop from last year, but it’s a lot of money nonetheless. Airfare for Christmas, meanwhile, is expected to average $400 per ticket.

If you’re worried about paying for your holiday travel in one fell swoop, that’s understandable. Charging your flight or rental car on a credit card might be a viable option. But if you carry a balance forward, you’ll risk accruing interest on that sum. That’s not ideal at a time when you’re already looking at spending extra money on things like holiday gifts and decorations.

But you may not have to rack up credit card interest when paying for travel over time. Many “buy now, pay later” plans, or BNPL plans, allow you to pay for travel in installments. In many cases, that means avoiding interest charges and fees.

But if you’re going to sign up for one of these plans, you’ll need to be careful. Falling behind on payments could have serious consequences.

Don’t fall into a dangerous trap

BNPL plans might seem like a good thing at first. After all, you get the leeway to spread your payments out over a period without incurring extra costs. But that assumes you’re able to stick to your payment plan. If you fall behind, interest and fees could apply.

And that’s not all. Just as failing to make your credit card payments when you’re supposed to can result in credit score damage, so, too, can defaulting on BNPL plan payments. So if you’re gearing up to apply for a big personal loan in 2024, using a BNPL agreement to pay for holiday travel and then falling behind on your payments could easily wreck those plans.

Read the fine print of BNPL plans

It’s easy to see why a BNPL plan may be a more appealing way to pay for travel than a credit card. But do know that there are consequences to falling behind. Before you sign up for one of these plans, read the terms and conditions carefully so you know what you’re getting into.

You may also want to consider choosing a credit card over a BNPL plan if you’re confident in your ability to pay off your travel quickly. With a BNPL plan, you won’t rack up rewards or cash back for your purchases, whereas with a credit card, there’s the potential to get rewarded financially for the costs you incur to book a flight, rental car, or hotel room.

To be clear, though, whether you’re using a BNPL plan or a credit card to pay for your holiday travel, you should really only move forward if you’re confident in your ability to pay right away. If not, you may want to skip that travel this year, or encourage your family to come to you instead if their financial situations lend to that.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

Read the full story: Read More“>

Blog powered by G6

Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.

For any inquiries, please contact [email protected]