Consumers don&194;’t need a calendar to tell them it&194;’s summer &194;– they can tell by the loan offers that swamp mailboxes, enticing borrowers to charge a vacation to a credit card or take out a home equity loan for a new boat. But the season&194;’s good times can have a not-so-pleasant impact on future financial security, particularly in light of this year&194;’s double hit on debt: the recent doubling of minimum credit-card payments and the new bankruptcy reform law that will take effect this October.
This year, the Travel Industry Association of America forecast a record-breaking summer travel season, with travelers planning to spend an average of $1,109 per person on their longest trip. Taking a family of four to a ballgame now costs around $150. Even barbecue grills add up, moving into the thousands of dollars for the deluxe models made popular on today&194;’s home TV shows.
"Debt is like a swimming pool: Getting in over your head can be dangerous," warns Bradford Stroh, founder and co-CEO of Freedom Financial Network, LLC. "With vacation travel, outdoor entertainment and expensive toys like RVs and hot tubs, summer can be a financial minefield."
To avoid breaking the bank for summer fun, Stroh suggests the following:
1. A budget knows no season. Just because the boss is in Hawaii doesn&194;’t mean your budget is on vacation. Post your budget somewhere visible, like the fridge door, so summer can&194;’t burn it out of your mind. For those toys you really want, make a plan to save a certain amount every month so you can afford them &194;– next year.
2. Stay old-fashioned. How did you spend summer days and nights as a child Revisit old favorites: star-gazing, basketball in the driveway, frozen fruit pops, a cookout with friends, a trip to a local swimming hole. Challenge your family to have fun on a dime.
3. Scrimp on vacation. If you haven&194;’t yet escaped home, you might have a bad case of wanderlust. Try a camping vacation or a road trip. A recent study found that a family of four can take a weeklong RV trip for $483, compared to $1,169 for a car trip (staying in motels) or a painful $2,918 for a vacation by plane (source: PKF Consulting). For a getaway on the (dirt) cheap, pitch a tent in your backyard &194;– and borrow your indoor plumbing.
4. Think cold. Think &194;“Christmas in July&194;” and plan now for holiday purchases. Make sure you have a budget in place for seasonal gifts. Then, take advantage of summer sales to get great deals.
Freedom Financial Network, LLC (http://www.freedomfinancialnetwork.com) provides consumer debt resolution services through its Freedom Debt Relief, Freedom Foreclosure Relief and Freedom Tax Relief divisions. Working for the consumer and negotiating with creditors to lower principal balances due, the company offers an alternative to bankruptcy, credit counseling, and debt consolidation. Based in San Mateo, Calif., Freedom Financial Network serves more than 3,000 clients nationwide and manages more than $100 million in consumer debt.
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