Travelling with credit card debt.

soundsdifferent on 13/01/2015 - 19:22

So need a little advice

  • I'm Planning on travelling and working overseas in a couple of months time to travel and work (thinking about spending up to two years abroad)
  • I have a little money saved (estimated 7k pre departure)
  • Expecting to only spend what i earn while overseas

I currently have about 5k credit debt which i'm happy to pay back at minimum payment per month, in order to be able to travel.

With that debt, what should i do? Take out a personal loan? Long term interest free balance transfer(That will likely expire before i return)?

(Please no pay back the debt before going, some people may not understand this but i'm at a stage in my life where i need to go now not in 6 months)

Financial

Comments

  • conan2000 on 13/01/2015 - 19:50
    +1

    I would find a credit card with a 0% balance transfer. They pop up all the time and if you don't get the full 2 years, at least you should be able to get a good chunk of it. Hopefully with no fees as well! Then you can make minimum payments with no penalty.

    Consider what happens if you decide to stay longer as well, a low interest card may be a good option as it will save any admin of having to try and sort out a new one or a loan while overseas, without having any major penalties. You should be able to find one of those with an introductory offer at least.

    • jaybmate on 13/01/2015 - 20:16

      coles 18 month balance transfer currently

  • PVA on 13/01/2015 - 20:27

    someone just posted this deal . 24 months interest free. https://www.ozbargain.com.au/node/178969
    do the minimum monthly and enjoy the travel.

  • Munificent on 13/01/2015 - 22:06

    Yes, you will enjoy the 2 years of travelling and meeting new people, but is it worth many more years of financial hardship and worry?

    According to this calculator, if you only make the minimum repayments on your credit card debt, it will take 33 years to pay off and you will pay over $17k on the debt. https://www.moneysmart.gov.au/tools-and-resources/calculator…

    What happens if you cannot find suitable employment overseas? Keep in mind most countries have higher rates of unemployment than over here

    • tanoshiiki on 13/01/2015 - 22:57
      +1

      If there's no convincing the OP to pay off his debts, a long term interest-free balance transfer is his best option, like the one posted above. That way he can worry about his debt two years later, without the required total payments increasing during at least that period (he would still have to pay a minimum repayment to the balance transfer card though, but this would be similar to what he is currently doing with his $5k debt). He seems to be aware of his priorities and risks.

      • Munificent on 13/01/2015 - 23:05
        +1

        Yeah I know, the balance transfer will work assuming gets approval for the sufficient amount. All I was suggesting was to think long and hard about this choice as it is not financially responsible. After the interest free period, one assumes he comes back with savings depleted, and cc debt still outstanding at which point another cc juggling act is required or getting charged exorbitant interest rates

  • subywagon on 13/01/2015 - 22:47
    +1

    You don't have a car or anything you can sell to pay off your debt?

  • soundsdifferent on 14/01/2015 - 22:22

    Thanks for the advice

    • Kaizer as i said i going regardless come back in two years having paid off minimum payments repayments should be looking at a debt of 3k. that i can easily handle.

    • I do have a car tv xbox etc. but i want that to go towards my trip. - i would rather have a bit of debt and some money to work with rather then being away and putting payments onto card.

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