Carrying cash during a vacation can be a hassle.  For one, different countries have varying restrictions about the amount of cash you can bring in and take out.  Unless you do careful research, you may end up spending an extended period of time dealing with customs.

Even if you’ve done due diligence and are carrying the right amount of money, you’ll still need to have it exchanged for local currency, which means an extra stop you could have avoided altogether.   Safety-wise, cash is even worse.   If it gets lost or stolen during any part of your vacation, you will have lost it forever.

Using Credit Cards

When you opt to use a credit card during your vacation, you immediately skip all the troubles with carrying cash.  If it gets lost or stolen, you can just call your issuer and have it canceled, with little loss on your part.

Credit cards can turn into a problem if you’re in the habit of letting your spending get out of control.  Vacations are a time to treat and lavish yourself, after all, and a credit card is a convenient way of going overboard while doing it.

If you want to use a credit card during your holiday, a good rule of thumb is to set a budget beforehand.  Make sure to leave enough room for surprises, so you don’t end up setting too low a spending goal.  More importantly, have the money you intend to spend saved up before your trip so that you can pay for all expenses you incur immediately upon coming home.