Coping with Possible Debt Resulting from a Holiday

Debt at 30,000 Feet: the Hidden Landing Strip

For many, the holidays have flown past; many have experienced trouble-free get-aways around the globe courtesy of various airline companies, and many more have continued to use aeroplanes for personal travel, free from hassle. Whilst the economic climate at present can be held accountable for a sharp increase in air fares, the real cost of travelling can be radically affected by more than companies simply increasing the price of a seat.

Whether domestic or international, there are potential costs that are often overlooked when considering travelling. From the complications that can arise in the airport terminal to the disasters that can occur once at your destination, there are several possible situations that can very quickly escalate to serious amounts of money. For even the most prepared traveller, these can present a financial headache.

With many people feeling the financial squeeze due to the current state of the economy, those who have been able to organise air travel are likely to have sought value over luxury. In making concessions in the price paid for a plane ticket, many have also forgone the particular securities that can be offered by typically more expensive companies.

Whilst the majority of flights are well-scheduled, there are a proportion each year that are cancelled, significantly delayed or, as with some cheaper companies, over-booked. The terms and conditions subscribed to when purchasing tickets often fail to facilitate help with the costs that can be involved in arranging emergency accommodation, purchasing new flights or making alternative arrangements.

Many have no other choice other than to use their credit cards, resulting in often large interest payments when the full balance cannot be settled with the next bill and subsequent credit card debt. Travel insurance policies may be organised to specifically cover these situations, however there is often the initial outlay of money to consider before any claims can be made to organise compensation.

Similarly, it is crucial to thoroughly check the terms of any travel insurance policy before travelling as there could be particular exclusions that may prevent the insurance company paying out. For example, many standard policies do not include cover for adrenaline activities such as white-water rafting and bungee jumping.

The debt that can be amassed as a consequence of an accident can total rapidly, particularly for international healthcare. A mere ambulance ride in America, which has the internationally highest cost of healthcare, can start from $650 without the charge for mileage or hospital costs. The unprepared for amounts could easily precipitate debt and require drastic solutions such as an IVA or bankruptcy and such, it has never been more vital to be prepared for the hidden costs of travel.