26% of Americans plan to increase their vacation spending. Here’s how to do it without going into debt

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Over the past year, many consumers have taken a more conservative approach to vacation spending, and that’s understandable. Back then, the economy was in a much darker situation than it is today and unemployment was still rampant. Additionally, health issues may have prevented some people from seeing loved ones and spending more money on gifts and celebrations.

This year, consumers might be eager to get back into the holiday spirit, and for some, that could mean increasing their spending budgets. In a recent Discover the survey, 26% of respondents said they expected to spend more money on holidays this year than they did in 2020. This feeling is particularly strong among younger generations, with 44% of Gen Z and 33% of millennials say they will increase their spending this year.

If you plan to spend more during the 2021 holiday season than in the past, it’s important to do so without racking up debt In the process. Here’s how to do it.

1. Make a budget in advance

Budgeting for vacations could help you avoid running into debt as your expenses increase. Take a look at how much money you have in savings coupled with remaining funds in your next paychecks. From there, determine the maximum you can spend without having to carry a balance on your credit card.

2. Reduce non-vacation expenses

The holidays don’t last forever, and after what may have been a dreary 2020 holiday season, you might just want to do it all this year. If you want to spend more and avoid getting into debt, you may need to cut back on your other spending to make this possible.

Take a look at your recurring bills and see if there are any that you can temporarily reduce. You may decide that it’s worth not ordering takeout twice a week and diverting those funds to holiday gifts and decorations.

3. Increase your income with a secondary activity

The holidays are a popular time for shopping, which means many retailers need seasonal help to meet consumer demand. If you want the opportunity to spend more money on the holidays this year, it’s worth seeing what seasonal job offers are available in your neighborhood. If you are able to work evening or weekend shifts, you can use your extra income to increase your Bank account – and make the holidays more special.

Holidays are also a popular time to travel. If you live near an airport, you might well work for a local taxi service or sign up to drive for a transportation company like Uber or Lyft.

There’s nothing wrong with wanting to make this year’s holiday season as magical as possible, even if it means spending more money in the process. The key, however, is to avoid going into debt. If you budget, cut some existing bills, and increase your income, you could put yourself in a great position to celebrate the holidays the way you want without any negative financial consequences.

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