It is far too easy to be caught off guard when you are in holiday mode, and that means you could easily fall into one of the common money traps where you end up spending more than you need to.
Using your credit card or phone overseas are classic examples of where you can be subjected to some extortionate costs and added fees simply because you happen to be in a different country.
Let’s take a look at some of the typical money traps to steer clear of when traveling abroad.
The cost of phoning home
When you want to use your phone to keep in touch with friends and family or simply make calls to book trips and other tasks, there will often be a nasty shock waiting for you when you get home.
The vast majority of mobile networks charge you eye-watering amounts when you use the roaming option. If you use a service like Simify, for instance, you can buy a travel SIM card that allows you to use your phone without worrying about a large bill when you get home.
Check with your bank before you go
Some banks charge a transaction fee every time you use your card abroad. They might also use uncompetitive exchange conversion rates when calculating what to bill you for each spend.
Check to see what your bank charges for using your card abroad. A good alternative would be to load a prepaid currency card with some cash so that you are spending in local currency and there will be no hidden fees.
Don’t be tempted to buy your currency at the airport
It’s an absolute certainty that the worst conversion rates for buying foreign currency are always going to be found at airports.
These exchange bureaus know that you are not in a position to shop around for the best rates so they offer you a poor deal where the value of your cash will diminish.
Always buy your foreign currency before you head for the airport.
Excess insurance is usually excessive
If you are hiring a car you will often be offered the chance to buy excess insurance cover at the desk. These charges are exorbitant compared to what it would cost you to get standalone cover before you travel.
Arrange suitable insurance for driving a car abroad before you pick up a hire car. That way you can politely decline the offer of excess insurance that would cost you a lot more.
Arrange a pickup from the airport
Ordering a car to collect you from the airport before you go is a smart move.
Stepping into a local taxi could leave you open to being charged a fare that is much higher than it should be because they know you are a tourist with no idea of local taxi fares.
Don’t transfer money from your bank
If you need some more money while on holiday don’t be tempted to order a bank transfer using your banking service at home.
International money transfers using your bank are much more expensive than using an online money transfer service. Using this option will be quicker and cheaper than using your own bank to transfer cash.
Don’t accept an offer to convert the currency when you make a purchase
Some stores might offer you the option of paying for your items in the local currency or agreeing to a currency conversion so that you can pay in your home currency.
Don’t be tempted to pay anything other than the local currency. Conversion rates will never work in your favor and you could end up paying a lot more for something than you needed to.
All of these tricks are designed to maximize the opportunity to get as many tourist dollars as possible. Stay wise to these scenarios so that you can make your travel money go as far as possible.
