CCCS offers tips to avoid vacation overspending

When you take the family on the road for a summer vacation, you can go through a lot of money. Souvenirs, hotel rooms, meals out, recreation fees, and other vacation expenses can add up in a hurry. That's why many families need a vacation budget.

"Vacation overspending can be a problem for families that don't take the time to develop a spending plan," says Kim Womack, director of education for CCCS of South Texas, a non-profit community service organization that offers debt and credit counseling and education.

Vacation travel is an expensive proposition even with a budget. Families can expect to spend about $1,100, according to a past Better Homes & Gardens Family Vacation Travel Report, with many families spending considerably more.

Here are tips from CCCS on how to avoid vacation overspending:

1. Cap your vacation spending. Decide how much you can spend and how you are going to get the money. Vacation savings clubs are great ways to save vacation money. If you do not belong to a credit union that offers one, start a separate vacation savings account at your financial institution.

2. Start shopping early. Wait too long to finalize your vacation plans, and you will pay more for a limited selection of hotel rooms and airline flights. Start your vacation planning now by checking out travel agents, online travel sites like www.travelocity.com, neighbors who travel a lot, and travel books.

3. Develop a vacation budget. Your vacation budget should be as thorough as your household budget and include food, transportation, lodging, entertainment expenses, toll-road fees, parking, gifts, sodas, snacks, magazines, and any other anticipated expenses.

4. Pace your vacation spending. Don't run out of money three days into an eight-day vacation. The best way to avoid a vacation money crunch is to track your expenses carefully. Some families use a notebook to keep a daily tally of their expenses.

5. Decide how to pay on your trip. Heading off with $1,000 in cash probably isn't a good idea because you're out of luck if you lose it. Traveler's checks are safer because they can be replaced as long as you record the numbers. Credit cards are also safe because your liability is limited to $50 a card. Debit cards are basically e-checks that are cashed quickly. Be sure to enter debit charges into your checkbook ledger.

6. Create a credit plan. Limit your charges to the money budgeted for the trip and record your charges in the vacation notebook. When you get home, pay off these charges with your vacation account. In general, try not to charge any unbudgeted items you can't pay off within 90 days to keep interest down. You will have an easier time keeping up with your expenses if you use only one or two credit cards.

7. Do a vacation review. Once you're back from your trip, review your holiday expenses. Total up your notebook ledgers and receipts to see where you saved money and what you can do better next year.

8. Seek professional help if needed. If you end up spending more on your trip than you can afford, call CCCS of South Texas at 800-333-4357 to schedule a visit with a certified credit counselor. He or she can assess your financial situation and make recommendations.

Remember that planning is the key to avoiding vacation overspending. If you stick to your vacation budget, you won't have major bills to deal with this fall - just photos to look at.