Survey: Americans Who Pay for Vacations With Credit Cards Won’t Pay Them Off Right Away

Dori Zinn

Updated on August 27, 2018

August 27, 2018June 11, 2021Life & FamilyFeatured, Life & Family, Personal Finance938Dori ZinnJamie YoungOther

Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution.

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Whether you’re hitting the local pool or traveling the world on vacation, summer is all about relaxation.

But trips aren’t cheap. About one-third of Americans don’t plan on taking a summer vacation this year, according to our recent spending survey. Among those who are traveling (67%), many expect to foot a pretty hefty bill.

Here’s how Americans are planning to spend money this summer.

Key findings

Nearly half of the summer vacationers are spending at least $1,000. Roughly 47% of vacationers planned to spend $1,000 or more on their trips, with 20% expecting to spend $2,500 or more.
More than half of the vacationers are spending more than last year. Fifty-five percent of those going on a trip expected to increase their spending this year from 2017.
Three in 4 people are putting expenses on a credit card. Of those taking a trip, 75% planned on using credit cards to pay for their vacation. And 59% of them don’t plan on paying off their credit cards right away.
Spending on kids is minimal. When it comes to activities such as day camp or child care for children on summer vacation, 54% of vacationers with kids are planning on spending less than $1,000. Twenty-seven percent aren’t expecting to spend anything on these activities.

People love their summer vacations

Americans are living the “treat yo self” mantra in 2018: As many as 47% of vacationers in our survey plan to spend $1,000 or more this year.

That’s higher than the estimated winter holiday spending last year. In 2017, Americans expected to spend about $965 on the holidays, including on gifts, food, and decorations, according to the National Retail Federation.

Less than one-third (31%) are planning to spend the same on summer vacation as last year, while 14% are expecting to spend less than what they did in 2017.

Credit cards take a front seat

When financing a vacation, credit cards are exceptionally convenient for trips. This could explain why 24% of vacationers plan to put at least $1,000 of spending on credit cards.

While some of the best credit cards can offer some great rewards, many shoppers are paying a lot more than what they charged on their vacation. Three in 4 vacationers are putting their trips on credit cards, and three-fifths of them don’t plan to pay them off until at least a month.

Carrying a credit card balance means you might end up paying extra in interest every month.

To avoid paying interest, try to pay off your credit cards in full every month. If your balance number seems a bit too high, check your vacation budget before making arrangements to see if it’s affordable.

Many parents won’t spend much on kids’ summer activities

Summers can be detrimental for parents who don’t have any sort of child care help. More than one-third (36%) of respondents said they have kids who are on summer vacation this year.

Twenty-seven percent of parents who have children on summer break aren’t planning to spend anything on activities such as day camp or child care, while 25% note they’ll spend less than $100 this summer.

But 19% of parents with kids on break are spending $1,000 or more on their children this summer. This is more than parents were spending in 2014. Four years ago, parents expected to pay $958 on average on summer activities for kids, according to an American Express survey.

Keeping up appearances

Aside from travel and vacations, Americans are doling out a bit of cash even as they stay close to home.

Social activities are proving costly, as 28% of respondents plan to spend $500 or more on weddings, barbecues, and other parties this summer. Ten percent are expecting to spend at least $1,000.

But budgets have proven to keep people frugal: 53% of respondents noted they’ve considered skipping social events this summer to save money. But that means 47% don’t plan to cut back on parties this summer to save money.

Additionally, 51% of respondents thought about having a staycation this summer to save money.

The change of seasons shouldn’t dictate your spending

While summer is a great time for traveling and having a good time, you should still try to stick to your budget. Only 60% of those who said they were taking a trip admitted to having a vacation budget, while 40% don’t have one at all.

Here are some ways to keep a handle on your summer spending:

Make a budget (and stick to it). Don’t be part of the (very large) 40% of vacationers that don’t have a summer spending budget. Regardless of whether you plan on taking a vacation, the time for rest and relaxation might nudge you into spending more than you can afford.
Don’t forget about your current bills. Try to keep up with regular payments on your credit cards. It’s best if you pay them in full. At the very least, make minimum payments.
Keep social activities low. Since more than a quarter of respondents admit to spending more than $500 on things such as weddings and parties, try to limit your appearances. Keep them limited so you don’t go overboard with spending.

The more you can plan your spending based on your earnings, the easier it will be to spend responsibly. With a little strategy, you can avoid going into — or staying in — debt.

Methodology

This summer spending survey was conducted on June 12, 2018, in partnership with SurveyMonkey, collecting 1,016 responses from adult Americans 18 and older.

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¹ Includes AutoPay discount. Important Disclosures for SoFi. SoFi Disclosures Fixed rates from 5.99% APR to 18.85% APR (with AutoPay). SoFi rate ranges are current as of March 19, 2020 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your creditworthiness, years of professional experience, income and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. 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Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org) ² Includes AutoPay discount. Important Disclosures for Opploans. Opploans Disclosures Direct Deposit required for payroll. Opploans currently operates in these states: . 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The range of APRs is 7.99% to 29.99% and your actual APR will depend upon factors including your credit score, usage and history, the requested loan amount, the stated loan purpose, and the term of the requested loan. To qualify for a 7.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available. All loans are made by Cross River Bank and MetaBank®, N.A., Members FDIC. ⁵ Important Disclosures for Citizens Bank. Citizens Bank Disclosures Rates and offer subject to change. All accounts, loans and services subject to individual approval. 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Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary based upon LendingPoint’s proprietary scoring and underwriting system’s review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 6% may apply depending upon your state of residence. Upon LendingPoint’s final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. LendingPoint makes loan offers from $2,000 to $36,500, at rates ranging from a low of 9.99% APR to a high of 35.99% APR, with terms from 24 to 48 months. The loan offer(s) shown reflect a 28 day payment cycle which is being offered as a courtesy as many of our customers are paid on a biweekly schedule and thus this may better align the loan payment dates with your actual income receipt schedule. ⁷ Important Disclosures for LendingClub. LendingClub Disclosures All loans made by WebBank, Member FDIC. 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