Nursing a Financial Hangover From Summer Travel? Here’s How to Work Your Way Out of That Debt

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

Racked up debt this past summer? Read on to see how to work your way out of it. 

Summer tends to be a popular time to travel. And if you took a vacation this summer, you may be paying the price now in the form of a lingering credit card balance.

Allianz data released earlier this year found that Americans were expecting to spend a whopping $214 billion on summer vacations in 2023. On a per-household basis, that’s $2,830.

Of course, the problem with carrying a credit card balance from a summer trip is that you might end up losing hundreds or even thousands of dollars to interest charges, depending on the rate your card charges and the sum of your balance. So it’s a good idea to try to rid yourself of that debt as quickly as possible. Here’s how you can do that in the coming months.

1. Get a seasonal side gig

The holidays are almost upon us. And in the coming months, consumers will no doubt be hitting the stores in an effort to make their holiday purchases.

That’s why now’s a good time to get yourself a side hustle. Chances are, if you start looking immediately, you can find a business in town that needs more seasonal help.

But don’t wait too long to get that side hustle. U.S. retailers are only expected to add 410,000 seasonal jobs this year, says Challenger, Gray & Christmas. That might sound like a large number, but it’s actually the lowest level of seasonal hiring since 2008.

2. Cut your spending

“Cut your spending” might come across as some of the most tone deaf advice you could get. After all, you can’t stop paying for food, rent, and the car you need to get to the office.

But there’s probably some amount of spending you can cut in the coming weeks — at least before the holiday season really kicks into gear. And if you can find expenses to cut that don’t really crimp your lifestyle, you can at least make a dent in your credit card balances.

A good bet, in fact, is to spend a few minutes doing a spending audit. Comb through your last few months of credit card bills and pay attention to every expense. You might realize there’s a streaming service costing you $20 a month you don’t really need. Canceling it could free up $60 for your credit card balance by the end of the year.

Now, if you owe a few thousand dollars on your credit card, you might think there’s no sense in pushing yourself to make a $60 dent. But remember, when you’re paying off debt, every little bit counts.

3. Bank year-end bonus cash

Not everyone receives a year-end bonus. So to be clear, this advice unfortunately won’t apply to everyone. But if you are someone who generally gets a modest payday during the holidays or at the tail end of the year, then it’s a good idea to earmark that money for debt payoff purposes.

You might also get a year-end bonus in very small increments. But that still counts. And it’s important to save that money for debt payoff purposes just as well.

For example, maybe you work as a hairdresser and your regular clients tend to give you an extra $10 here or $20 there during the holidays as a thank you. That’s not the same thing as getting a $500 or $1,000 year-end bonus from your employer. But those small bonuses could really add up.

If you’re carrying credit card debt from summertime travel, you’re no doubt in good company. In that case, use these tips to shed that debt as quickly as possible so you’re not still dealing with it by the time the summer of 2024 rolls around.

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