Backpacking Banking: how to use money whilst travelling

There are a lot of different decisions to make when it comes to using money whilst travelling. There are about four different choices you could make; credit card, debit card, prepaid travel card and cash. You can either pick one, two or all of these.

Backpacking Banking: how to use money whilst travelling

Cash
It can be assumed that everyone will take cash, and it can be assumed that you will have to withdraw money out also. My advice would be to carry 100-200 of the local currency but in different locations; in your wallet, in your bag, in you hotel safe, etc.

Credit Card
Credit cards seem to scare a lot of people, and that it with good cause. No one wants to be racked up with the debt that they cannot deal with. I would recommend getting a credit card as soon as you turn 18 so that you can start to build up a credit rating, however, I will do a blog post about this in the future. The best credit card that I have found for travelling is the Halifax Clarity Credit Card.

This credit card allows for around the world ATM withdrawal charge free (although some cash machines may charge) and has no charge when being used anywhere around the world. This means you don’t need to pay to access your money which appeals highly to me!

Debit Card
A debit card is the best place to keep all your money, it is probably the safest place as no one can access and get hold of your money instantly. The best debit card that I have found is by Norwich and Peterborough, Gold Classic Current Account.

This debit card allows for overseas use with no charges for using it abroad, although similar to the credit card the ATM may add their own charges.

Prepaid Travelling Card
These are similar to a credit/debit card, however, you add money onto the card which you then spend until it maxes out. Meaning, it is much like a top up card. These are useful as they are not corrected to your bank so if they get stolen there is no harm caused. I would recommend these if you wish to be safe, and will be using card payments frequently. However, they are no so necessary now that credit and debit cards allow for card payments at no extra charge.

I hope this was useful to anyone trying to decide how to travel with money. My plan is to have one credit card (for emergency and credit score), one debit card (where I will keep all my money) and then cash will be withdrawn and used as an when needed. This is my first travel related post so keep your eyes out for lost more! In the mean time why not check out my top five tips on joining the vegan lifestyle!

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