Americans are going into debt just to relax. Vacation debt is quietly becoming the newest financial crisis, with families putting flights, hotels, cruises, and even theme park tickets on credit cards at record levels. Buy now, pay later plans, travel loans, and 25% APR credit cards are turning memories into monthly payments.
In this video, we break down how vacation debt is skyrocketing in 2026, why so many Americans feel pressure to “live their best life” even if they can’t afford it, and how banks, airlines, and travel companies profit from your impulse to escape. We’ll look at rising credit card balances, buy now pay later travel financing, and what this trend says about the state of the economy.
1. Why are Americans willing to finance a vacation but not build an emergency fund?
2. Has social media pressure made going into debt for travel feel normal?
3. What happens when the trip is over but the payments are just beginning?
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The lady at 9:06 marker does not feel debt free in a bigger since, because she probably has no money to save really because she has to maintain a lot of the expensive stuff she still owns. You can tell from the back ground in the screen that she may have a lot of expensive things to maintain. I also dated a lot of women who said the exact same thing she said when they got out of debt. I am only going off Life Experience so this is by assumption.
I would have liked for you to cover human beings like this (debt free who own a lot of expensive stuff they still have to fork out money to maintain), because it happens a lot. The late great billionaire Charlie Munger talked a lot about this kind of debt free in his seminars.
Been doing 2 yearly vacations nearly every year for the last decade. Sometimes going overseas. Generally try to pay off the bill before we go. "Financial literacy" may be a big part of the problem. I'm no expert but I hate having debt.
What's insane is you have all these comments downing these folks but have nothing to say about the pilfering of this government and the way they've taking tax money, while having 6+ bankruptcies!! GTFOH!
The problem is not people not getting married and having kids but plurging money instead. Young folks jist KNOW that the things that were normal for some generations wont happen for them, like retirement, so they rather have fun now instead of waiting for X years.
Is this super clever? No. But the future doesnt look like its getting better any time soon, so better enjoy your life while you can ( ideally with the money you actually own)
If you have to put a vacation on credit card you don't need a vacation.
Even though investing is better than saving, something still magically happens when you learn how to SAVE, SAVE for a holiday, car, new laptop etc. Debt, one missed payment can lead to a lifetime of problems. Even if unexpected bills come in and suck up your savings, or one month you can't put money away, life still continues. No, you don't have to save and invest for $1 million, you can save and live modestly.
One of the problems is the people on social media are trying to bail themselves out of bad decision. The smart ones have a plan and don't pay attention to this garbage advice.
I'm going to a book conference in D.C. in April. While, yes I'll be putting everytthing on a credit card, I've budgeted and have wellover what I think I'll spend (hotel, meals, boooks) saved in a high yield savings account and will be paying it off immediately! My only debt is student loans which I've gotten down from $169k in 2023 to $69k! Budgeting and livingwithin your means is key!
Fostering kids pay 1500 per child per month. She is getting 6000 to 7000 a month
disney vacation club is awesome. Get the biggest package and if your rich its top notch
The amount of Disney Adults who throw their lives away for multiple Disney vacations is absolutely absurd!
I live in Poland and I was never thinking about myself as rich. Average was what a thought. I have a house without mortgage and no debt.
We were always told that Americans were wealthy but I never thought that it was all borrowed wealth.
Nonsense, spend only as you have,no leasing, no credit, no debt,it's lifespan long my path!
I already paid off my vacay for April. I did use my CC but I paid it off right away. The points I can then use for a future expense! Last year I did the same thing when I went to Punta Cana. But you best believe there was a time in my life when there were NO trips, luxuries, eating out, going to the salon, shopping, etc.etc. I was in debt. That was my priority. I paid off my debts in 5 years. I continue saving and investing. Now I can afford a little bit of fun. I never spent more than $2K for a trip and that's for my kid and I. My mind still gets blown at these $10K trips um, wow! ????
We were in debt, but then my elderly parents passed away and left us enough money to pay all our debt including the house. New driveway, siding and roof… finished our basement. Bought 3 new cars, put 2 kids through college, a couple of family vacations to Europe and plenty left to fund our retirement. Thanks mom and dad… miss you!
I guess I’m glad I have absolutely zero desire to travel, because mainly I don’t get it. Pay a crap ton of money to fly to another place, to pay to sleep in another place, to do… what? Eat different food? Look at stuff? It’s all just so expensive for stuff that is just a little different. If I want to see something, google earth exists. If I want to eat something, I could literally pay to have all the ingredients flown in from their “authentic” source. I get that it is fun, but the price is almost never justified.
I am so impressed by the 25 y/o red-head therapist. Her self-awareness and sound thinking are off the charts! When she's my age, 72, she will not have to reflect back saying if only I knew then what I know now. She gets it already! Wow!
$84k of credit card debt is $1400 a month in just interest at 20%
Men! Don't date broken women.
I know that this might be a little impromptu, but some people take vacations to network for business purposes but their locality doesn’t have many options available. The credit card debt is reasonable and I also understand, but when you have an everyday workload in the healthcare field (including nights and weekends), a small vacation is reasonable.
I would rather just go on vacation and not bring it home with me. Debt isn't worth it!
OMG wait and save money till you retire. Then take trips. People save up to take an anniversary trip before retirement. You don't need to go to Disney with all the kids who are 6 and younger they won't remember. Take them to a zoo or an amusement park not too far from your house.
10:26 Not compelling. Call me crazy but I rather have a paid off home my dad and mom left me vs memories of us in Hawaii