Myvesta Survey Finds People Pay Big Bucks for Summer Vacations
Free Publication Will Help People Save Money
For Immediate Release: June 5, 2001
ROCKVILLE, Md. — The average summer vacation will cost $3,155, according to a telephone survey sponsored by Myvesta, a nonprofit financial services organization. That figure is up almost 40 percent from last year’s average of $2,274.
“If vacation spending is any type of economic indicator, things are looking up,” said Steve Rhode, Myvesta.org president and co-founder. “For many families, though, their vacations will end up on their credit cards only to be slowly paid off for months, maybe years.” The survey found that 80 percent of vacationers will use a credit card to pay for their vacation. In 2000, only 74 percent charged their vacations.
Of the vacationers using their credit cards, almost half plan to pay their balance off in full when the bill arrives. “For many people that’s wishful thinking,” Rhode said. “Too often people pay just the minimum payment not realizing how much the interest will add to the total cost of their vacation.”
Based on a 17 percent interest rate, paying just the minimum payment extends the credit card payments for this year’s vacation to 33.5 years and adds $6,823 in interest. Bump the monthly payment up to $200 and keep it there, and the debt will be paid off in just a year and a half. The total interest paid would be only $440.
“Vacations provide an important break from our daily routines,” Rhode said, “but going into debt to pay for it could make your everyday life even more difficult.” Of the 1,000 people surveyed, 53 percent said they planned to take a summer vacation.
To help everyone save money on vacations, Myvesta has created a publication called "How to Come Back From Vacation With Money in Your Pocket". The publication, which includes cost-cutting ideas, can be downloaded from Myvesta.org online.
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MyvestaSM is dedicated to helping people create healthy financial lives. The organization provides a wide range of materials to inspire and inform people so that they can break down their barriers to financial and personal success. For more information visit Myvesta.org online.
