If you are planning a trip abroad, and not going the all inclusive route that I did, then it’s important to decide before you leave what will be the best way to carry and use your spending money while in paradise.
In the past, you would have changed up your hard-earned into the appropriate foreign currency or traveller’s cheques before embarking on your trip – but today there are a lot more options. When it comes to spending money abroad you have 4 main options – debit cards, credit cards, traveller’s cheques or cash. To help you decide which of these options will be right for your trip and budget, check out the advantages and disadvantages of each option below:
Cash
Advantages – It is the convenience of cash that makes it useful when travelling abroad. This is especially true if you are travelling in countries that are more ‘off the grid’ – for example finding a cash machine in Timbuktu might be a bit difficult. Cash can also be useful if you need to change up more money in different countries on your trip, as you can often get a better deal exchanging for cash.
Disadvantages – Alongside being risky to carry in case of losing it, spending too much on the first day or being mugged, the main problem with carrying cash is the constant danger that if it is stolen it cannot be replaced and is near to impossible to claim back.
Debit Cards
Advantages – Compared to cash, as mentioned, a debit card is a far safer method of carrying your money. If it is stolen then you can quickly cancel the card by phoning your bank to stop any of your money being used without your knowledge. Obviously they are easy to carry and can be used in cash machines in a surprisingly large amount of countries if your card is part of major networks such as Plus or Cirrus.
Disadvantages – There are more than you would expect, in some countries your debit card may not be accepted in cash machines (and that is assuming you can even find one!), and will often not be accepted in shops and restaurants – so you will need to carry cash for these expenses. If you do manage to find a cash machine then you are now almost always charged for making a withdrawal. Many times unless you notify your bank first they will immediately decline a transaction until they get a hold of you to verify that it is you using your card. This sometimes even happens when you have notified the bank.
Credit Cards
Advantages – Again, as with debit cards, credit cards are easily portable, better in terms of security and in some cases (such as MasterCard or Visa) can be used in many different countries.
Disadvantages – Alongside all the previously mentioned difficulties that you can have with a debit card, credit cards can also be susceptible to credit card fraud – where thieves can steal your credit card information and take money from your account. I have heard all types of stories about cards being cloned, which can really put the spanner in the works of a lovely holiday. As with Debit Cards, you need to notify your credit card company if you are travelling abroad so as to prevent them blocking your card, as this is a measure they will often implement if they believe your card is being used fraudulently in another country.
Travellers Cheques
Advantages – The main advantage of using traveller’s cheques is that they are the most secure form of carrying your travel money. Your provider will be able to replace the cheques if they are stolen and as they require a signature for use, they can not be used by anyone other than you. No cloning worries!
Disadvantages – They can often be more expensive to buy, as you will have to pay a service and sometimes shipping charge when they are ordered online. You will also need to find a bank in whatever country you are in that is able to cash in the travellers cheques, as some banks may not be able to offer this service. In the end, you will probably do some combination of the options, it will all depend upon what type of holiday you are going on, how modern the country is and if you are going to need a lot of cash. If you do go a bit overboard when hitting the bazaar, you may want to consider having money sent to you from someone at home via international money transfer to a bank in the country you are travelling in. It is great to know that money can get to you easily if you need to buy that rug or if a lion gets into your hotel room a la the Hangover.
Happy Travelling!!!
Originally posted 2011-07-20 16:30:38. Republished by Blog Post Promoter
I am sorry that I have not been posting regularly but I have been working on a new ebook, The Stylish Frugalista. Yes you can have style, look great without spending a fortune and you will not have to go to Primark.
A colleague commented recently, she thought it was a bit strange that I don’t go out much and prefer to do my drinking at home usually with a meal that I prepared. She thinks I am a bit odd, perhaps I have a touch of agoraphobia outside the workplace, but no that is not the case.
