Yahoo reported on July 24 that although travel costs have continued to rise in recent years, Americans’ enthusiasm for vacations has shown little sign of cooling. More people are using credit cards to pay for flights, hotels, and other holiday expenses. Financial experts warn, however, that if a trip leaves behind months or even years of debt, a brief period of enjoyment can turn into prolonged financial stress.
Recent surveys show that many American households still plan to maintain or even increase the number of trips they take. At the same time, a significant proportion are still paying off credit card bills from last year’s vacations. Experts recommend planning a budget in advance rather than worrying about the bills after returning home, and avoiding high-interest debt that could erode future financial freedom.
The vacation ends, but the debt is just beginning
As the cost of airfare, hotels, rental cars, and dining rises, more consumers are relying on credit cards to pay for travel. If the balance is not repaid during the interest-free grace period, high interest charges can quickly inflate the true cost of a vacation.
A survey released by Experian this year similarly found that about one-third of U.S. consumers had already booked travel for the coming year. Although most believed travel had become more expensive than it was a year earlier, more than one-third of respondents said they were willing to take on debt in order to travel.
Meanwhile, NerdWallet data showed that overall travel costs in the United States remained high. Airfares were up more than 26 percent year over year, while accommodation, dining, and other expenses also continued to increase, pushing the cost of an average family trip to one of its highest levels in recent years.
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A 2026 NerdWallet survey found that 84 percent of American summer travelers planned to use credit cards to pay for at least part of their trip. Of those, 23 percent said they would not pay off the full balance when the first statement arrived, meaning they expected to incur interest.
Looking back at the previous year, 74 percent of those who used credit cards for travel expenses did not pay off the full amount on their first statement, while 35 percent still had not cleared the debt a year later.
Set the travel budget before choosing the destination
Financial advisers generally recommend deciding how much to spend before deciding where to go, rather than doing it the other way around.
Axios quoted financial adviser James Rothwell as saying that one of the biggest mistakes consumers make is falling in love with a destination first and then continually adding hotel upgrades, special experiences, shopping, and other extras until the total cost far exceeds the original budget.
Experts recommend setting a total budget before departure and allocating separate amounts for transportation, accommodation, meals, attraction tickets, and shopping. They also suggest reserving about 10 to 15 percent for emergencies, such as flight delays, medical expenses, or unexpected transportation changes.
Points and off-season travel are better than borrowing for a vacation
Travel and financial experts interviewed by Yahoo said that controlling travel costs does not necessarily mean sacrificing quality. Instead, it means making full use of available resources.
For example, booking flights several months in advance, remaining flexible with departure dates, and traveling during the shoulder season can often produce substantial savings on airfare and hotels. Travelers can also use credit card points, airline miles, and hotel loyalty rewards to cover flights or accommodation and reduce their cash expenses.
Many experienced travelers also recommend checking fewer bags, using public transportation, and staying in accommodation with a kitchen so that some meals can be prepared independently. These measures can significantly reduce the overall travel budget without greatly diminishing the experience.
Keep the trip in your memories, not on your credit card bill
Experts broadly agree that travel should provide relaxation and pleasant memories, not become a long-term financial burden.
If a trip can only be taken by carrying a high-interest credit card balance over an extended period, it may already be beyond the traveler’s financial means. Rather than spending months or years paying off a vacation after it ends, a more prudent approach is to establish a dedicated travel fund, contribute a fixed amount each month, and depart only when enough money has been saved.
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