Paying off debt can feel like a long, uphill battle. But it doesn’t have to mean giving up everything you enjoy, like traveling the world. In fact, it’s entirely possible to pay down your debt and still find ways to travel. Here’s how I managed to pay off $28,000 in student loans in just three years while exploring places like Spain and Israel—on a salary of about $30,000 a year.
Make Your Priorities Clear
The first step to managing both debt and travel is setting your priorities straight. When I was tackling my student loans, I knew I couldn’t give up my love for travel. I decided to make both paying off my debt and traveling abroad my top priorities. But focusing on these two big goals meant I had to cut back on other, less important expenses.
For instance, I avoided eating out during lunch breaks and didn’t spend money on things like unnecessary take-out or nights out at the bar. Instead of buying books and DVDs, I borrowed them from the library. The key takeaway here is that if you want to say yes to one thing, you might have to say no to others. Saying “no” in the short term helps you say “yes” to your long-term goals—like traveling and becoming debt-free.
Use Travel Rewards to Your Advantage
One of the smartest moves I made was signing up for travel rewards credit cards. Many of these cards offer great sign-up bonuses that can cover the cost of flights, hotel stays, and even car rentals. I used cards like the Chase Sapphire Preferred, the United MileagePlus Explorer, and the Delta SkyMiles card to rack up points.
But there’s more to it than just getting the points. By using the cards responsibly, I was able to increase my credit score while earning rewards that helped pay for my travel. However, it’s important to avoid overspending just to earn rewards. Focus on spending within your means to make sure your travel rewards actually help you reach your goals without causing financial strain.
Put Windfalls to Good Use
Everyone gets unexpected money from time to time, whether it’s a birthday check or a freelance gig. Instead of spending these windfalls impulsively, I put the extra money directly toward my goals. When I received unexpected income, I’d decide in advance whether to use it for travel or for paying down my student loans.
Having a plan for these windfalls kept me on track. It’s easy to get carried away with the idea of treating yourself, but I found that putting that extra cash toward my debt or my travel fund was far more satisfying in the long run.
Choose More Affordable Destinations
Many people dream of visiting iconic destinations like Paris or London, but these can be quite expensive, especially when you’re also trying to pay off debt. The good news is that there are plenty of affordable travel options out there. Countries like Croatia, Peru, and Vietnam offer incredible experiences at a fraction of the cost of more expensive European or Asian destinations.
When I went to Spain, I spent just $2,000 for the entire trip, which included airfare, accommodation, food, and sightseeing. By choosing more budget-friendly locations, I was able to experience amazing destinations without blowing my budget.
Final Thoughts
Traveling while paying off debt is possible if you plan ahead and make smart choices. By prioritizing what matters most, using travel rewards, being strategic with extra money, and picking affordable destinations, you can achieve both financial freedom and your travel dreams. Remember, it’s all about balance—making sacrifices in some areas means you can enjoy the rewards in others. Stay focused on your goals, and you can travel the world while becoming debt-free.
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