Racked Up Debt From Your Summer Vacation? Here's How to Pay It Off Quickly

If you spent a lot of money on travel this summer, you're no doubt in good company. Data from Allianz found that Americans were expected to spend around $214 billion on travel this summer, and that 2023 summer travel spending was on track to more than double from pre-pandemic levels.

Of course, it's one thing to rack up a large credit card balance due to travel costs and pay it off in one fell swoop. But if you're unable to do that, and you allow your debt to linger, it might end up costing you a lot in the form of interest.

A better bet? Do what you can to shed that debt before the year comes to a close. Here's how.

1. Consider a side hustle

Taking on an extra job isn't easy when you have a jam-packed schedule to begin with. But chances are, you don't have tons of money left over each month after paying your essential bills. If you did, you probably would've been able to pay off your vacation immediately rather than carry a credit card balance forward. And so in that case, a side hustle makes sense for a period so you can get ahead of that debt.

Keep in mind that side hustles can take on different forms. And you don't necessarily have to commit to a preset schedule if that's not doable for you. Rather, you can find a gig that's more flexible, like driving for a ride-hailing company or doing things like web design or content editing at your own pace.

Granted, with web design and editing, you'll generally have a deadline to stick to. But you may not have to commit to being at a desk or in a given place for preset hours every week.

2. Look at consolidating your debt

You might have a $2,000 balance on one of your credit cards charging 18% interest from your resort stay and a separate $3,000 balance on another card at 16% interest for your flights and activities. Not only can juggling multiple balances be stressful, but at those interest rates, you could be looking at losing a lot of money if you don't knock out your debt ASAP.

That's why it pays to look to consolidate. If you qualify for a balance transfer offer with a 0% introductory APR, that may be a route to consider -- if you think you can pay off your balance in full by the time your introductory period comes to an end.

Otherwise, you may want to look at an installment loan with a fixed interest rate. If you sign a personal loan, you might end up only paying 7% interest on your debt, which, based on the numbers above, is an improvement. Plus, you'll get the benefit of predictable monthly payments. And the higher your credit score, the more favorable a personal loan rate you're likely to snag.

Taking vacations is important. It allows you to get a break from the grind and share new experiences with family (or in some cases, experience new things yourself). But you don't want your summer vacation to result in lingering debt that makes your life difficult and costs you a ton of money in interest. So it pays to do what you can to shed that debt as quickly as you reasonably can.