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Americans happily go into debt for vacations

Americans happily go into debt for vacations

Nearly three quarters of Americans go into debt to pay for a holiday.

A study commissioned by LearnVest and conducted by Wakefield Research found that 74 percent of US citizens are prepared to borrow money to head on vacation, with the average American accepting a debt of $1,108 for their dream break.

The survey also revealed that Americans were planning to take two more vacations this year than they had done in the last 12 months, with almost a third of people (31 percent) wanting to spend 10 or more days away at a time.

On average, it takes Americans six months to recover financially from their vacation and 66 percent are willing to pay more than a month's rent or mortgage on a seven day holiday. In fact, saving for a holiday was their top priority (32 percent), higher than saving for a home (27 percent) and saving for retirement (seven percent).

Americans, on average, prefer to spend around 10 percent of their annual income on getting away for a break and save their money in the prior months by eating out less (50 percent), cutting down on shopping trips (48 percent) and spending less on concerts and trips to the cinema (41 percent).

Alexa von Tobel, Certified Financial Planner, CEO and Founder of LearnVest.com and the author of 'Financially Fearless', said: "Having a financial plan is key to avoiding debt when you go on vacation. Budgets don't have to be synonymous with deprivation and should be about making room for your long-term financial goals, while also allowing you to enjoy what you earn."

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