Travel without going into debt.
BY PHILL FELTHAM
Every traveler has heard that credit cards are the best way for ongoing travel. However, I think a combination of ATM cards and cash are the best choices. Proper planning can ensure traveler security while having a good time.
CREDIT CARDS
According to FreeTravelTips.com they claim that credit cards can be more valuable than cash.
They make these points:
- Exchange rates are better than manually changing cash.
- The traveler is in a stronger position; the credit card company can often refund disputed charges.
- Many credit cards offer extra guarantees or warranties when on purchase items, but reading the fine print is always helpful.
- Risk is reduced to the traveler’s safety by avoiding carrying and displaying large amounts of cash.
- Many credit cards have a low maximum liability limit if the card is quickly reported lost.
Credit cards are convenient and great for high cost emergencies, but a word of caution. Credit cards easily incur debt. I’ve known travelers who put their entire trip on their credit cards only to end up all the next year repaying it. Credit cards with large limits can present a lot of freedom for travelers so that that extra location while on the road is easily within reach. But remember it also gives a thief that much more spending allowance. However, also be careful when using the dreaded plastic, control the credit card or the card will control you.
ATM MACHINES
FreeTravelTips.com also has the benefits of ATM cards:
- ATM cards reduce the amount of cash the traveler needs to take. ATMs are a good way to access funds.
- The ATM will issue money in local currency. Exchanged at the bank’s wholesale exchange rate.
- Shopping around to different banks will help reduce the risk of a high usage fee. Sometimes, even high ATM fees may be less than others will charge for currency exchanges.
- Always keep money on you and go to the ATM before you run out.
CASH
Now that we’ve outlined the benefits of plastic, I want to present the benefit of cash.
- In Asian countries, many mom and pop shops don’t have credit card machines so a little cash is required to pay for the merchandise.
- Small amounts of cash at home is not a bad thing. Keep the large amounts in the bank and a small amount for the day’s spending. It’s advised not to leave any amount of cash in your hotel room.
- Money lasts longer. Spending is controlled when there are no ATM or credit cards available. This reduces the risk of overspending which is just as bad as stolen or lost cards or cash. However, this only works if the desired destination is for a longer period of time then you had planned.
- Fast and easy. Cash is great for those late mornings where you risk missing your flight. Sometimes a little sandwich will hit the spot just before takeoff.
Although I have presented the good and bad for all three forms of purchasing, I believe that ATM’s and Cash can work hand in glove together. All three have their uses on your travels, however, the wise traveler is frugal about how many pieces of plastic he carries. In most foreign countries, which would include North America, cash is still the most effective in emergencies. iT!
Canadian native Phill Feltham has been living in Taiwan for a year and a half. He is currently teaching English in Taiwan. Phill is also the Publisher for The Weekly Wanderer.
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