Travelling While in Debt: How to Plan a Vacation Without Going Further into Debt

So, you have got a bit of debt, but the travel bug is biting hard. You might be wondering, “Can you travel if you have debt?” The truth is, you absolutely can. Travelling while in debt is possible as long as you approach it with a bit of responsibility and a plan that keeps your finances steady. When you’re thoughtful about how you budget and prepare, you can enjoy a trip without creating travel debt that follows you home.

It all comes down to balance. You can still explore new places, make memories, and enjoy a change of scenery while staying committed to your financial goals. With the right habits, it’s completely possible to plan a vacation without going into debt and avoid vacation debt along the way.

Can You Travel if You Have Debt?

Travelling while in debt isn’t about telling yourself “no” forever. It’s about finding balance so you can enjoy life while still making progress on your financial goals. With some thoughtful budgeting and preparation, you can avoid vacation debt, stay on track with your payments, and still give yourself the break you deserve.

Step 1: Assess Your Debt Situation

Before booking anything, it’s important to understand where your debt stands. This helps you decide whether you can travel if you have debt now or whether it’s better to wait and plan for a future trip.

Types of Debt

You will want to lay out all your debt to understand what type of debt you have. Maybe you have got student loans or high-interest credit card debt. Each type of debt comes with its own rules, like different interest rates and payment plans. Understanding these can help you prioritize which debts to tackle first and see where you might have a little wiggle room.

And remember, debt itself isn’t a moral failing. There’s good debt (like education or a mortgage) that supports long-term goals, and there’s costly debt (like high-interest revolving credit) that can slow you down. Understanding the difference helps you figure out where to focus first.

Calculate Total Debt

Write down how much you owe, your interest rates, and your minimum payments. Knowing your numbers will help you craft a budget that works for both paying down debt and saving for that much-needed getaway. Plus, it might be a good time to explore debt-relief options, which could lower your monthly payments and give you more breathing room.

Step 2: Evaluate Your Financial Position

Next, it is time to look at your financial picture. Travelling while in debt only works if your day-to-day finances can support it. This step helps you check whether a vacation is realistic right now.

Calculate Your Current Income and Expenses

Start with a simple budget: money in versus money out.

List your income (paycheques, benefits, side income) and subtract your fixed and variable expenses. The amount left over is what you can safely put toward a travel fund without dipping into money meant for debt payments.

If there’s very little wiggle room — or none at all — travelling right now might not be the best move. But it can definitely be a future goal.

Do You Have an Emergency Fund?

Before planning a trip, make sure you have at least a small emergency fund. Travelling while in debt with no savings is risky — especially if something unexpected happens while you’re away. Aim for three to six months of expenses saved if possible, but even a small starter emergency fund provides peace of mind.

Understand Your Financial Goals

This is where you balance your short-term dream (a vacation) with your long-term goals (paying off your debt, saving for a home, building stability).

Ask yourself: can you travel if you have debt without slowing down your long-term financial progress? If the answer is yes and you can do it without taking on more travel debt, great. If not, push the vacation to later and start building toward it now.

Step 3: Smart Ways to Save for Travel

A great way to plan a vacation without going into debt is by creating a travel fund that feels doable.

Try setting aside a small, consistent amount every paycheque (even $20 or $40 adds up). You can use savings-app features, the envelope method, or even a dedicated travel account so you’re not tempted to spend that money on something else.

If you want to grow your travel fund faster, consider small side-income options like selling unused items, freelance work, or seasonal jobs.

Step 4: How to Travel on a Budget

Travelling while in debt doesn’t mean travelling without joy. You can still have an incredible experience while keeping your budget tight.

Choose Affordable Destinations

Look for places where your money goes further or plan a trip closer to home. Local adventures, road trips, or exploring lesser-known towns can be just as exciting and much easier on your wallet.

Travel Off-Season

Off-peak travel often means cheaper flights, smaller crowds, and more affordable accommodations. A little flexibility with dates goes a long way in helping you avoid vacation debt.

Compare Transportation Methods

Sometimes flying is cheapest. Other times driving, buses, or trains win. The goal is to choose the option that fits your budget and timeline.

Use Accommodation Hacks

You don’t need a luxury hotel to have a great trip. Consider:

• Staying with friends or family
• Choosing budget hotels or motels
• Looking into home swaps or house-sitting

And always read the fine print for extra fees.

Limit Credit Card Usage

Foreign transaction fees can add up fast, and it’s easier to overspend when you’re tapping a card. If possible, use cash or a prepaid card to help you stay on budget.

Step 5: Avoid Going into Debt on Vacation

This is the big one, because travelling while in debt only works if you don’t add more debt along the way.

Set a spending limit before you leave. Track daily expenses using an app or a simple note on your phone. Avoid impulse purchases, upsells, and luxury add-ons. Look for free attractions, use public transit, and grab meals from affordable local spots instead of tourist-priced restaurants.

These small habits add up and help you avoid vacation debt without missing out.

Can You Get a Loan to Go Travelling?

Technically yes, but taking out a travel loan while already in debt is rarely a good idea.

Travel loans usually come with high interest rates, and adding more debt just delays your financial goals. If you’re already struggling with payments or relying on credit cards month to month, a vacation loan could make things worse.

Instead, focus on paying down existing debt and building a travel fund. You’ll enjoy your vacation much more when you’re not worrying about how you’re going to pay for it later.

Can You Be Stopped at the Airport for Debt in Canada?

No, having consumer debt won’t stop you from boarding a flight. You can travel if you have debt without fear of being stopped at the airport.

The only exceptions involve serious legal issues like unpaid court fines or criminal matters. Regular consumer debt, like credit cards, loans, lines of credit, will never prevent you from travelling. But if your credit cards are maxed, you may have difficulty getting hotels as they require a certain amount of funds to be available on the card (generally enough to cover the stay and incidentals).

Additionally, if your debt is escalating to court action or collection pressure, that’s when it’s time to reach out for help.

Step 6: Balancing Travel Dreams and Debt Goals

The goal isn’t to choose between travelling and becoming debt free, it’s learning how to enjoy life while still being financially responsible.

Start with smaller, budget-friendly trips. Celebrate your progress along the way. Travelling while in debt doesn’t have to be stressful when you plan with intention and stick to what you can afford.

How Farber Can Help You Manage Debt Before Travelling

If your debt feels overwhelming or you’re unsure how to plan a vacation without going into debt, Farber can help. Our Licensed Insolvency Trustees offer personalized debt relief solutions, from consumer proposals to budgeting guidance, so you can stabilize your finances and enjoy future travel without worry.

Book a free consultation today and get expert help managing your debt in a way that supports both your financial goals and your travel dreams.

 

FAQs: Travelling While in Debt

Can I travel if I have debt?

Yes, you can travel while paying off debt, as long as you budget responsibly and prioritize debt repayment before taking on new expenses.

What are some ways to avoid going into debt on vacation?

Set a spending limit, travel during off-peak seasons, use cash instead of credit, and look for free or low-cost attractions.

Can I get a loan to go travelling?

While some lenders offer travel loans, it’s best to avoid borrowing for discretionary spending if you already have existing debt.

Can you be stopped at the airport for debt?

No, Canadians cannot be stopped at the airport for unpaid consumer debts. Only legal issues such as court orders or criminal matters may restrict travel.

How can I plan a vacation without going into debt?

Start saving early, choose budget-friendly destinations, and stick to a realistic travel fund based on your current financial situation.