Going For Vacation- Guide to Safe and Inexpensive Foreign Cash

It’s a festive season and all minds are set for a vacation outside the…. (Put the name of your country). The question of foreign currencies arises. Most holiday makers prefer or may be don’t have an option but to use cash which obviously would be converted to foreign cash. Apart from paying your way through your vacation by cash, it would be wise to consider use of other available options like credit cards, debit cards or travelers cheques. These options are safer and less costly in terms of converting to stronger foreign currencies.

Let’s now take to the pros and cons of each of these three in terms of conversions. You would also love to know the convenience of carrying each of those around so that you don’t attract grab away you hard earned investment.

Cash

You will agree with me that despite the conveniences this form of value provides it’s the most risky of all and can be bulky at times especially if your country has a stronger currency than the destined country.

Another eminent disadvantage is that you will have to pay more because you will be charged to exchange local currency to the currency you need. A side note to consider; always change your local currency in your country as foreign countries may charge a higher commission.

A small amount of cash is, however, recommended for payments like taxi fares; maybe tips in hotels and small items like drinking water.

Traveler’s cheques

These are widely accepted in most countries. These are cheques of fixed amounts that you buy in the currency of the country you will be traveling to, and are widely accepted in most countries.

Compared to using cash, traveler’s cheques have much more advantage of being cheaper, as they are charged a low commission of say 3% to 5%, compared to the transaction fees which are charged on cards and are still cheaper than buying foreign currency. ‘Beware, however, that some countries do not accept these cheques and one may have to exchange them for cash’. Well it’s always advised that you have a prior knowledge of the country you are traveling to. A reconnaissance would be the best.

Debit Card

Local debit card:
A debit card in the currency of the country you are staying in is the best and least costly option if you are going for a stay of several days or longer, especially in self catering accommodation. Your local bank should be able to set up a debit card in the country you are visiting and ATM withdrawals, as well as other transactions will be at local rates that are fair.

Foreign Debit card

With these be wary of how much you spend when charging items or services to your card. An ATM withdrawal in your country may cost less as compared to the foreign country. For instance I pay $0.50 to withdraw in my local bank and this may cost something like a dollar, a pound or a euro in your destined foreign country or even three times the amount it costs locally. If shopping for items then, imagine how much more you would be charging to your card if you are not adding as you shop. There is a possibility of meeting the frustration of overcharging your card or find yourself short when you are away from home.
Well this suggests that a prepaid local debit card would do best for the sake of sticking to a budget. In a layman’s language, a pre-paid local debit card is one that allows you to deposit the money you have budgeted for your holiday and thus you are more likely to keep to your budget.

Credit Cards

The high cost it takes to operate this form of value makes them to be avoided altogether. If your account is in your local currency say US dollars you will be charged when buying something in the foreign country and the exchange commission.
Using a credit card in foreign currency is also unwise because you may intend to pay for it within the interest free period, and comes to more than you anticipated and that may be the beginning of a debt nightmare as interest is charged on outstanding balance and interest, which is how many people end up with unbelievable credit card debts from a seemingly small amount.

Although it’s not possible to pinpoint the exact amount of money that you will spend during your vacation, this is a guide to the least to most expensive forms of cash to spend abroad and which are the safest and most convenient.

Well at the end of the day the choice is yours. Consider, however, what form of money will cost you least to convert and how safe it is to walk around with.

Now that you have learnt the safe and inexpensive foreign cash in foreign places, you would love to consider how to choose a traveling agent. Other wise I wish you the best of holidays.