An interesting question arose in the spring of 2025, just before the summer holiday season kicked in. Travel platform Afar posted the headline: “Is It Ever Worth Going Into Debt to Travel?”
One might ask whether travel and debt are even compatible, but for some, the outcome isn’t as harmful as one might think. There are many ways to make travel less disruptive to your debt repayment plans.
Is It Wrong To Go into Debt for Travel?
The article sheds insight into good debt and bad debt, presenting the case for whether “travel debt” is even wrong. Among other financial experts, the post cites National Debt Relief consumer affairs officer Natalia Brown, who gives her verdict.
“Travel debt can be good, but it really depends on whether you planned for it,” she says. An example Brown gives is credit cards. In short, planning a repayment schedule that avoids high-interest repayments is good; doing so without a plan is not.
This scenario presents two outcomes: continue with the current situation, or spend money you don’t have for a much-deserved escape. The good news is that debt doesn’t need to cancel your travel plans, and being budget-conscious is the key to managing both.
Put simply, there are many ways to help someone make that escape without the guilt associated with forking out for a vacation. Who said debt and wanderlust can’t be best friends?
A Zero-Based Budget Approach to Vacations
At the root of this idea is zero-based budgeting, an approach that can change lives for the better, albeit with serious effort. Zero-based budgeting is not about having nothing in the bank; it is related to knowing exactly where every cent you spend goes.
The current U.S. Administration is renowned for its zero-based budgeting approach, particularly in national and foreign aid spending. The US Government’s Department of Government Efficiency (DOGE) comes from the zero-budget playbook. Moreover, local governments in India are implementing the same approach, according to a recent Press Trust of India report.
Doing Your Homework
Carrying out this zero-based budgeting method for travel requires an extensive understanding of your income and expenses to work. A MoneySmartGuides post on the matter suggests several steps to take to make this ethos work for you:
- Track and record your income; it is easier for those on payroll, though self-employed workers can be just as effective.
- Detail every last monthly expense, such as utilities, groceries, and insurance payments; be sure to include everything.
- Calculate all annual and irregular expenses for those expected payments not included in monthly outgoings;
- Be sure to factor in all debt, such as student loans, car payments, and mortgage costs.
- Set yourself a travel savings target that is realistic and achievable.
Of course, without adding a travel fund to this arrangement, it will be harder to focus any spare savings on that goal. By making your travel ambition a feasible payment, like groceries or utilities, you can save more easily.
Being Consistent for Effective Results
Other helpful information comes from the frugal travel website, WillSaveForTravel. Its guide to making a zero-based vacation budget offers another noteworthy idea: putting yourself first. “Pay yourself first by putting money into savings,” reads the guide. “I like to transfer money into savings accounts on payday so I don’t spend it first!”
Furthermore, the post recommends end-of-month reviews, using a spreadsheet to monitor all that period’s spending and earnings. “Spending about 45 minutes a month really helps keep me organized and in control of our money,” it states.
The Tech Cavalry Is Here
Thankfully, for the less-motivated budgeters, there is a world of technology to help with the process. A CNBC Select article sheds light on some of the best free budgeting applications that can help you realize that vacation plan. The following tools make the grade:
- Goodbudget wins the “Best for beginners” section.
- SoFi Relay gets the “Best for reaching savings goals” gong.
- The “Best for managing subscriptions” is Rocket Money.
- Empower wins for help with investing.
- GnuCash comes first for small business owners.
Travel Budgeting Books for the Win
In addition to apps, books can be useful for zero-budget travel desires. Travel writer Josie Kelsh shares her valuable experience on her platform, Josie Wanders. In a recent post, she shared her best picks for budget-friendly traveling. “I can travel cheaper than it costs me to live at home,” Kelsh writes. “It just requires a change in mindset for you to do the same.”
Some of Kelsh’s favorite books include Lonely Planet’s The Best Things in Life are Free and Big Travel, Small Budget by Ryan Shauers. Other titles mentioned include Travel the World Without Worries by Marek Bron and Vagabonding by Rolf Potts.
There are few excuses not to succeed with these kinds of tools on our side. While debt-free travel may be unattainable for some, there is hope that, at the very least, vacations can still be within reach.
