What I Ask My Clients Before They Use Debt To Vacation

Images by Getty Images; Illustration by Bankrate

When you’re working hard to build financial security, deciding to spend thousands of dollars on a vacation can feel complicated to say the least. You’ve been paying off debt and building a checking account buffer. Maybe even investing for the first time.

But you also want to celebrate a big birthday, take your first solo trip or finally explore the place you’ve been daydreaming about for years. So you start ruminating: Can I really afford to go? Should I put it on a credit card? Is it irresponsible to use debt for something joyful like travel?

This is a conversation I’ve had with multiple clients — especially first-gen wealth builders who grew up watching their parents only use money for food and shelter. Before you decide to leverage debt for a trip, consider your full financial picture so you can say yes with clarity.

1. What’s your credit score?

Many people guess or assume their credit score is too low to get approved for a new low-interest credit card, only to be surprised when we review our report and scores.

A credit score in the 700s opens doors to 0 percent APR credit cards with 12- to 15-month promo periods — sometimes even longer. If you’re going to borrow money, especially for a vacation or similar want, you should aim to pay the least amount of interest possible and protect your credit in the process.

Action step: Pull your credit score from your bank or a credit monitoring service. Don’t rely on a memory from several months ago.

2. What kind of debt vehicle are you considering, and is it your best option?

Many travel companies offer installment plans with low deposits and tempting monthly payments. But those “easy” options can come with high interest rates or hidden fees.

Instead, I guide clients to compare their options:

• Can you use a 0 percent APR credit card instead?
• Is there a card you can transfer balances to?
• Do the rewards or travel protections justify the interest or annual feel?

My advice: Don’t just ask, “Can I afford this payment?” Ask, “What’s the total cost of borrowing and is there a smarter way to finance this trip?”

3. Will your credit utilization stay under 30%?

If you’re planning to pull a $4,000 trip on a credit card, it’s necessary to look at your available credit limit and current balances. Keeping your total credit utilization under 30 percent — ideally under 10 percent — protects your credit score and keeps your options open in the future.

Explore how to:

4. Do you have a repayment plan and are you building a payoff fund?

It’s one thing to use a 0 percent credit card. It’s another to use that time wisely.

If you choose to leverage debt to pay for your trip, you will need to create a vacation payoff plan before you purchase your flight and travel accommodations.

You will want the following:

• A high-yield savings account named “vacation payoff fund” or something similar.
• Automated transfers to this sinking fund.
• A target date to be debt-free — ideally before the 0 percent period ends.

This gives my clients peace of mind, knowing that joy today won’t become stress tomorrow.

5. What emotions are influencing this decision?

Underneath every financial decision is an emotional one.

I ask clients to pause and reflect on the following:

• Is this vacation rooted in celebration or escape?
• Are you afraid of being seen as irresponsible for prioritizing joy?
• What beliefs about debt, rest or worthiness are surfacing as you plan?

This part matters just as much as the numbers. When you give yourself permission to want something — and then build a plan to experience it with intention — you walk away more confident and with better resources, rather than burdened.

Mindset shift: Your desire for rest isn’t selfish. And your joy doesn’t need to be delayed until you reach some imaginary milestone.

Is it possible to remain financially stable and take a vacation?

Yes, you can take a trip and stay financially secure. But instead of making the decision from a place of urgency or avoiding considering the entire picture, I invite you to make it from a place of clarity and compassion.

If you’re considering using debt to travel — or to invest in something meaningful — start by asking yourself these five questions.

You deserve rest. You deserve celebration. You deserve financial security. And with the right plan, you can make space for all three.