South America trip - financing

daniel-james

Hi

My girlfriend and I are going to South America at the end of September 2014 and will be returning to Uk in mid January 2015

I will have saved about £4,000 for trip - we've already paid for the flights there and back

I also have a student overdraft facility with Halifax for £3000 but I get charged £1 a day (>-£2000-0) and £2 a day (between -£2,000 and -£3,000) which is expensive so I'd rather close this account and open a new facility as a back up in case money gets a little tight whilst I'm out there

What would people recommend?

I am thinking of getting a 0% interest credit card for 12 or 18 months, giving me enough time when I return to pay off what I have used with no fees.

The credit card would be used for booking hotels, dinners and excursions and I would ensure minimum repayments are met

Which are the best deals available to me?

Thanks for your help in advance

Dan

Voyager2002

It's not going to work... find out how to see the region without spending more money than you have got; stay in the lower-cost countries; perhaps explore ways to give English lessons in exchange for accommodation.

Gavin83

What countries are you planning on going to?

daniel-james

Thanks for your advice all, I am saving £700 a month and will be debt free & out of overdraft at end of this month

Gavin83 wrote: »

What countries are you planning on going to?

Fly to Peru, then to Bolivia, Argentina and up to Brazil before flying back in early to mid January

My travelling friends and staff at STA travel have said to budget for around £1000 a month spends, what are the thoughts here?

Peccary

It's going to be amazing, we went to SA for six months recently. I think your budget is ok for the basics and will stretch a lot further in Peru and Bolivia than in Brazil and Argentina. I would have the credit card for big things. Our policy was not to miss out on anything as it was a one off trip!
We underestimated the cost of bus travel between places, my husband is tall so wanted the higher end buses for those 14 hour+ trips!
Also, get the Halifax clarity card for withdrawing cash as there is no charge.

Voyager2002

daniel-james wrote: »

Thanks for your advice all, I am saving £700 a month and will be debt free & out of overdraft at end of this month



Fly to Peru, then to Bolivia, Argentina and up to Brazil before flying back in early to mid January

My travelling friends and staff at STA travel have said to budget for around £1000 a month spends, what are the thoughts here?

You could cut costs without compromising on the quality of your experience by visiting fewer countries and discovering them in greater depth. I spent a year in Colombia and did not feel the need to explore more widely, although a later three-week trip to Ecuador was also wonderful. Since Peru and Bolivia are low-cost countries and also outstanding destinations, you might concentrate on these two (although shifts in currency markets mean that Argentina might offer very good value for money at the moment).

As for borrowing, if you took 2,000 pounds from that overdraft and repaid after six months it would cost you 180 pounds. That is about as good as you could expect from credit card borrowing. The only cards that let you have cash on an interest-free deal are Virgin and MBNA (at the moment the same company, although that is changing) and I doubt whether you would qualify for a substantial cash advance with them.

daniel-james

Cheers for the advice, my only worry with using my overdraft is if I take £2000 out of it, it's going to take at least 4/5 months to get out of it as I'll be coming back and looking for a new job.

Would it not be better to spread the repayments equally using a 0% credit card - (18month at 0%) this way I'll have over a year to clear the debt and will allow me to find my feet whilst avoiding overdraft charges of £30pcm

A lot of my pals have said Bolivia is one place they wish they'd spent more time in...cheap, amazing sights and great people!

Peccary

Bolivia is great as long as you are not prone to altitude sickness! It is much cheaper than the other countries you plan on visiting. You will see some of the indigenous culture and there is quite a bit to do in a fairly compact country. It is easily the poorest of the countries i visited. If you plan on taking any Spanish lessons, it's good place to learn as they speak clearly and private lessons cost just $5.

La Paz at carnival time is one of our best memories!

InsideInsurance

Rather than looking how to get into debt why not look as to how to increase your income and avoid debt?

Travel is fantastic, south america is fantastic too but getting in debt will reduce how much travel you can do in the future and if you enjoy it then it shouldnt be just a one off experience

Voyager2002

InsideInsurance wrote: »

Rather than looking how to get into debt why not look as to how to increase your income and avoid debt?

Travel is fantastic, south america is fantastic too but getting in debt will reduce how much travel you can do in the future and if you enjoy it then it shouldnt be just a one off experience

I'm pretty sure that the OP is a student now, so increasing his income would jeopardise his studies and perhaps reduce his long-term earnings... And students have greater freedom to spend months abroad on extended trips than do most of us wage-slaves, so there are good reasons for doing it now rather than in some indefinite future.

I do agree that long-term debt is a very bad idea, so my suggestion is to cut costs.