How are you going to fund your gap year?

September 7, 2007

It is that time of year when students have now secured their place in university and they are now ready to experience life before they start to study again. A gap year is an extremely popular choice for many young people as it involves experiencing new things and just getting away for a while. However, whilst a gap year is often a fantastic experience, you have to have some way to fund it.

Using credit cards is one of the most common ways in which students pay for their gap years, but that can be a big mistake. It is a much better option to save up money through a part time job and to budget your trip. That way, you will not have to constantly think about the interest rate on your card and what you could owe at the end of your trip.

With credit cards it often costs you a lot more than you think to take your gap year. If you are travelling abroad like most students do, then there are usually hidden fees that you should know about. Many credit card companies charge you for using your credit card abroad. So you should find out about this before you actually spend anything or draw any money out on your gap year. This is the same with debit cards too and banks often charge extra for use of their cards abroad. It is something that can cost you thousands of pounds if you do not know about it, so always use cash when you can.

If you already have some kind of student credit card debt then it would be a good idea not to spend on a credit card at all on your trip. This is because you need to focus on paying back the debt that you already owe, rather than accumulating a new one.

Overall if you are set on using a credit card on your gap year, always make sure that you choose one which has the lowest foreign usage charges.