For some, having a credit card is a big no no. But for me, this is my best friend especially when dealing with my Travel plans. Let me share to you how I manage to go to places without enough money on hand, just me and my credit card, but still able to pay all of them on time.
It’s a common practice to set aside a certain portion of our salary in a Travel Fund, but there’s always a time that we are tempt to spend all of those in a day and I’m guilty of that so I thought of a different way. If we want to set aside for example Php 1,000.00 per month, why not pay the merchant right away? This will give you motivation to continue what you have started and no backing out this time.
You may wonder that what if the cost of your RT ticket is Php 3,000.00, how can you tell Cebu Pacific or the Philippine Airlines that you are now committed to pay the remaining Php 2,000.00 in 2 months time? That you are not going to fall back this time? Well, your credit card can save you! RCBC Bankard for example has a feature of converting a straight purchases into 3 months installment with a minimal fee of Php 50.00. Tadaaan..! after 3 months, you’re paid! The next step is to search for accommodation, in my case, I find AirBnB cheaper so you just need to do the exact thing. The last thing you need to think of is your Allowance plus the Travel Tax, Metrobank for example is offering a credit to cash for only 0.99% per month and can go as low as 0.48% per month. For Php 12,000.00 allowance you need, that’s only Php 356.40 of interest if you pay in 3 months.
With this set up, you can manage to go abroad once a year at the minimum. You just need to plan ahead of time. Please take note that I am not tolerating the idea of “travel now pay later”. As I said, we have our own style. I just feel guilty whenever I pay a bulk of my savings one time. It’s a relief that I can at least defer and pay them in installment.
In substance I actually did not pay for the interest at all. Credit card companies are known for offering rewards if you purchase a certain amount so that covers the Php 50.00 and Php 356.40 of interest I just mentioned. Plus an intangible rewards, my Credit Rating for sure has gained a positive effect.
Callistus B. San Diego