Ask The Money Coach

Archive for the ‘Travel’ Category

In my book, Zero Debt, I explain how I got into debt (mainly via overspending), and also what it took to get me out of debt. To pay off my credit card bills, I used the exact same strategies I outlined in my book – getting a budget together, cutting back on frivolous spending (like vacations & dinners out), refinancing my auto loan, negotiating with my creditors for lower interest rates, doubling and tripling up on the minimum payments I was making, and using “windfalls” or “extra” money, like income tax checks and year-end bonuses from my job to pay off debt, etc.

Making Tough Choices

I also made some tough choices, like taking my two older kids out of private school and putting them in a less expensive private school. (They’re actually now in public school, and doing just great). After nearly 3 years of all this, I’d paid off $70,000 in credit card debt. Then in early 2004, my ex-husband and I sold some land we owned and used $30,000 to pay off the last $30,000 of credit card debt we owed.

In your question, you mentioned joining a debt management plan and taking on a second job. I know those were tough steps for you to take. But congratulations for doing so, because they will definitely help you become debt free faster. Lastly, I don’t know if you have a copy of Zero Debt. (The original version came out in late 2004; the updated, second edition of the book came out in 2009). In any event, in Day 25/Chapter 25 of Zero Debt, I also explained three different debt pay-off strategies that you can use to knock out credit card debt. (In my case, I used Strategy #2). Good luck in eliminating those credit card bills!

Airlines seem to be going ala carte. They are charging passengers for every bag they check, if they exceed the 40 lb or 50 lb weight limit, or bulge beyond the 40 linear inches allowed. Some are even charging extra if you check a bag at the gate.

If you learn to pack lighter when you fly, you’ll be able to save money in more ways than one. For example, if you travel with just one carry-on, you will not have to worry about tipping a bell hop for carrying your bags or holding them in storage after you check out. You will be more free to take a bus or train to and from the airport rather than the more expensive taxi or shuttle service.

Here are 4 tips on how to avoid airline baggage fees:

1. Use small, light luggage. Pack everything in one bag that is at or less than 40 linear feet (width + height + length). Most airlines limit carry-on sizes to 40 linear feet. If you choose a bag at this size be aware, however, that if you over stuff the external pockets by even an inch, your bag can be sent to the belly of the plane, with a charge to you.
2. Weigh your bags. Airlines will also charge you extra if your bag is too heavy. Check on the weight limits for your airline and before you head to the airport make sure you stay within the guidelines, which is typically a 40- or 50-pound limit for most airlines.You can try setting a bag on a bathroom scale, or hold it in your arms while you step on, and then weigh yourself again without the bag. The difference is numbers is the weight of the bag. If you don’t trust your bathroom scale, there are portable scales available just for this purpose. You can find such scales at travelonbags.com, magellans.com).
3. Board early. It is quite frustrating to have all of your belongings squeezed into the possible smallest bag so that you can avoid chcking luggage, only to board the plane and learn that the groups that boarded ahead of you used up all of the available overhead compartments and there is no space there for your bag. You then turn to slide the bag under the seat at your feet, but it just won’t fit. Feel the panic as the airline attendant approaches you and says, “Sorry, it seems we’re going to have to check your bag because there just isn’t any more room.”
   The easiest way to avoid the “cabin’s too full” issue, is to be among the first to board. Some airlines determine your boarding order by how early you confirm your flight. If you confirm your flight online within seconds of the time the airline says you may do so online, you’re apt to be one of the first for your boarding section. So, often the key to getting on board early is to reserve your seat online, and confirm your seat online as early as you can, and then arrive to the gate early enough so that you’re able to be first in line for your section.
4. Choose the dreaded middle seat. Most people prefer window or aisle, but when it comes to assuring you make it on with your luggage in hand, choose the middle. Middle seats have more under-the-seat storage. Window seat under-seat floor space is smaller because the sides of the planes are curved, and the aisle seats are smaller because over the years aisles have been made larger. So just in case all the overhead bins are taken by time you board, you’ll be assured enough space under the seat for a medium bag if you seat in the middle.

Travel light with one carry-on to avoid the airline charging you fees for checking any luggage.

In a move to help force passengers to travel lighter and to curb its costs, most airlines began charging fees for luggage you check. Typically, an airline for domestic U.S. flights charge $15 for the first checked bag, $25 for the second and anywhere from $50 to $125 for the third.

If you must bring more than a carry-on, be aware of your airlines fees for checked baggages.  Airfarewatchdog.com offers a chart of most major airlines and their baggage fees.

Couch Crasher: Getting accommodations on someone's couch is a very low-cost alternative to a hotel stay.

Hotel costs can be the biggest expense of any trip, even trumping airfare based on the length of your trip.  One way to eliminate the hotel is to sleep on the couch of a friend or even distant relative.  But what if you don’t have a couch connection in the town on your vacation list?  Make one.

Sites such as couchsurfing.com are connecting hosts with travelers for a cheap to no-cost alternative to hotels. You simply sleep on the couch of willing hosts, for free. All most hosts expect in return is a gift from your home town or a treat to dinner, and of course respect for their home (i.e. cleanup after yourself).

Couchsurfing.com verifies its members and home addresses through credit card verification and members rate each other and vouch for their credibility. If someone had a bad experience with a host or visitor, you’ll see it posted online, which takes some of the worry out of what type of host you’re getting. Simply opt for those with positive comments and high ratings.

Here are a few sites to consider when you’re looking for a host for international travel, or even within the U.S.:

• couchsurfing.com A popular site that aims to “create deep and meaningful connections that cross oceans, continents and cultures.” Members post their photos and a little something about themselves and their home or travels. You can browse member entries without becoming a member.
• www.globalfreeloaders.com Is an Australian-based hospitality network connecting people worldwide.  You have to become a member before you can the details on hosts. Free membership is renewable in 12-month blocks.
• hospitalityclub.org Is one of the first to offer this service on the Web.  Each member fills out details on a web form that other members may view. Sample pages are available for viewing before you join. Duration of stay and specifics (such as how food will be shared or not) are set out before your arrival.
• stay4free.com A global “free accommodation network” based in Holland allows options that lets members swap their entire home with someone else in another location, or you can opt to just be a guest or just be a host.

Disclaimer: I cannot vouch for the members on any of these sites. For the adventurous who would like a real-town experience versus just a tourist view, I think it’s a great alternative to a hotel stay. However, I still urge you to use your own best judgment before accepting accommodations from someone you don’t know.

Watching your flight take off without you because you were just bumped isn't all bad: With the right negotiating skills you can walk away with free travel.

Have you ever been at the airport waiting for your flight to board when the attendants announced that their are too many passengers booked and some will have to wait for another flight? Well, “getting bumped” to another flight may seem like a bummer, but it is a great way to save on airfare — minus the inconvenience.

Getting bumped happens because airlines allow overbooking for flights, counting on no shows so that they can still take off at full, or near-full capacity. However, if more passengers check-in than they had anticipated, the airline has to ask if their are any volunteers to wait for the next available flight. If there are not enough volunteers, then they will start bumping passengers themselves.

Freebies for being bumped
Here are some things passengers have been offered:

• free meal if the wait for the next flight or a delay is 2 hours or more
• a free hotel stay that night if the next available flight is for the next day
• admission to the VIP club
• discounted airfare for your next trip
• travel voucher giving you a free flight (note, this doesn’t always cover round-trip, so be prepared to purchase your one-way ticket back)
• a discount or refund on your current flight

The latter is particularly a good deal for passengers who do not fly that frequently or have a low likelihood of using that same airline for their next travels if they’re headed to a location the airline doesn’t cover. Also, some of the coupons or travel vouchers have expiration dates. If you don’t use them in time, it’s as if you were never compensated for your inconvenience.

Volunteer to be bumped
A way to save money on your flight and to negotiate better terms is to volunteer to be bumped. Here’s how to do it:

Call the airline the morning of your flight or the night before if it leaves early in the a.m. Ask the airline if the flight is overbooked. If they say yes, arrive at the terminal 90 minutes to 2 hours early for domestic flights and tell the ticket clerk that you are willing to be bumped should the need arise. Volunteers are taking in the order they volunteer, so that earlier you arrive at the airport the better your chances. You still can ask to be put on the volunteer list if you arrive later, but your chances of getting bumped decreases.

You can always back out from the list when the time comes and their airlines are not offering you the best freebie deal. Only take the bump if you’re happy with what you’re being offered. Also, only take the bump if your time is flexible. If you have a connecting flight or are trying to make it to a boat launch for a cruise, you’ll probably be better off if you hold on to your seat.