When You Travel: Are You Team Credit Card or Team Debit Card?

Imagine This Scenario:
It's the 3rd day of your 6 day/5 night vacation. You enter your debit card into the ATM and your card is DENIED. Shock and confusion as you know you have $500 in your account for food, excursions, and souvenirs for the entire trip. Or do you?

What many people do not realize is that hotels or cruise lines can withhold $200-$300 on your debit card from a week prior to a week after your trip.  Eating ramen noodles for the last few days or missing out on an excursion due to limited funds while on vacation is not fun.

Cons of Debit Cards
- Your hotel reservation can be denied if you do not have enough money in your checking account prior to travel
- You will have $200-$300 less in your account to pay on food, excursions, and souvenirs
- $200-$300 will be on hold days prior to and up to a week after your trip.
Tip: Have additional money in your checking account to pay your bills the week prior, during, and a week after your trip

Pros of Debit Cards
- Peace of mind that the trip is paid in full upon your departure
- No interest rate 

Cons of Credit Cards
-  Interest rate
-  Additional money added to your credit card balance
-  Expired or overextended credit card (Bring a back up card.)
Tip: To not pay interest, pay the credit card in full at the end of the month

Pros of Credit Cards
- Very little is withheld (as low as $1)
- The money charged can go towards Airlines mileage or cash back
- You can still pay in cash upon your arrival and nothing is charged to your credit card

Rhonda is team credit card. All the money in her checking account has a designation: Mortgage; Savings; Investing; and Other bills, including paying all her credit cards in full each month. Having $200-$300 less on her vacation by using her debit card is not fun. Sharee concurs!!

Are you Team Credit Card or Team Debit Card? Why?

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Rhonda W. & Sharee W.