These days just about everyone has some kind of credit card debt. Whether we’ve hit some bad luck and needed the help or we’re just plain lazy and bad with money, we all know what debt looks like. In fact, a recent report estimated that the average American family has around $8,000 in credit card debt alone. That’s well over a trillion total!

Kind of makes you want to throw your credit card in the ocean, doesn’t it? Well, as much as we’d all like to get rid of our credit cards, it’s not as easy as you think. I know this because I actually tried it! And while I’m happy to be rid of my debt and won’t likely build anymore, it was still a lot harder than you’d think. Here’s everything I learned from the experience.

The Hassle

First and foremost, the most important thing I learned is that getting rid of your credit card (or credit cards) is very, very hard. Mostly because so many things these days require that you have one! Booking hotels and flights, setting up accounts online, putting down a deposit or a “soft hold,” etc, etc. Sure, debit cards work sometimes, but not all the time. So, if you’re thinking about pulling this off yourself, just be prepared to put in the work.

The next major lesson I learned that should be blatantly obvious to all of us, is that if you can’t pay for something with cash, you can’t afford it! Now, I’m not saying you should only keep your money in cash form and just constantly walk around with thousands of dollars in your pockets. That, of course, would be very stupid.

Basically, it means, if you can’t pay for something using the real money you have in your bank account (check, debit card, cash), then you really shouldn’t be buying it all. So many of us convince ourselves that we can put a charge on our card and we’ll definitely pay off the card at the end of the month. No problem. But then, come the end of the month, all of a sudden we don’t have the money to pay off the credit card and now we’ve got a bunch of fun, new debt! So if you’re really looking to get rid of some debt, stick to your checking account.

At this point, many you reading this might be thinking, “Yeah, I hear ya. Debt is scary and easy to rack up. But I just love my rewards!” And, trust me, I hear you. The benefits that come from credit card purchases can be great! Emphasis on can. More often than not, our credit cards are already so full that we’re facing pretty steep interest charges. So if you’re getting a sweet $35 reward on a given purchase, but you’re paying $85 a month in interest charges, you’re not exactly saving yourself any money, are you?! (Hint: No. You’re not.)

Then there are the ever-dangerous store cards. You know, those credit cards you can start that are specifically for H&M or Victoria’s Secret or Old Navy? I’m not going to beat around the bush here, folks: if you open one of these cards you are terrible with money. The interest rates on these cards are typically higher than any other credit card and the rewards are rarely worth it. So if you’re still struggling with the idea of ditching your proper credit cards, at least do me the favor of getting rid of these foolish cards.

And now it’s time for one of the greatest benefits I found when I got rid of my credit cards: I actually started being as frugal as I always wanted to be! When you can put something on your credit card that you promise yourself you’ll pay off later, what’s another couple hundred bucks?! Just go for it – buy both of those sweaters you love!

And therein lies the basic problems with credit cards. It so rarely even feels like real money. So when you get rid of them and start actually using real money, it turns out you’re much smarter about how you spend it and only spend exactly what you need! And when it’s all said and done, I promise you, the things you wanted to buy, and would have bought if you had a credit card, will not be missed whatsoever. In fact, you’ll probably be happy you didn’t bother.

     Michelle Higgins of The New York Times is proof of this slightly overlooked hack when she visited the Grand Canyon in August with her nine-year-old daughter. She booked a two-night stay at the Enchantment Resort in Sedona, Arizona. Upon arrival, her $299-a-night double queen room reservation was upgraded to a two-bedroom, two-bath suite with a kitchenette, a fireplace, and dual balconies facing the Boynton Canyon.

      Apart from those, she was informed by the receptionist that their daily breakfast could be taken either in the room or at the hotel restaurant. Moments later, a golf cart serviced them to their spacious suite where a service attendant arrived with a fruit and cheese platter and a personalized welcome note. Such VIP treatment wasn’t due to Higgins being a famed personality but to her old-fashioned way of booking – with a travel agent.

     When most travelers have turned to independent booking as it credits flexibility, control, and cost-cutting by booking through websites, luxury travelers with a minimum spending of $300 a night could use a travel adviser/agent for better deals, specifically ones from large consortia like American Express, Signature Travel Network, or Virtuoso for their longstanding partnerships with travel companies. Senior Vice President of Preferred Partnerships for Signature Travel Network Phil Cappelli claimed, “We buy a considerable amount from the travel providers and are able to secure additional benefits for guests.” Perks referred to can include airport transfers, complimentary breakfasts, late checkouts, spa treatments, and room upgrades, among others. When using a travel agent, the aforementioned extras come at no additional cost.

       For American Express Platinum card members, long as they book through American Express Travel, they are given access to the benefits (which vary by card level) whether they talk to an agent; book online; or through the app. Same goes for Virtuoso.com and Signature Travel Network with shipboard credits and exclusive, personalized perks offered to users.

     The relationship these travel agents have with tourism services (e.g. hotels, cruise lines) is a two-way street; as the agents drive up sales to reap benefits for their clients, they also receive commissions. To lower the risk of encountering a travel agent who’d prioritize his/her incentives before your experience, it’s recommended to respectfully ask how he/she is compensated. 

     Going back to Higgins’ experience, with thorough research prior to consulting Beth Washington at McCabe World Travel, a Virtuoso member, she was able to stumble upon the cheapest, nonrefundable rate of Enchantment worth $623.38 and an option offering flexible cancellation worth $718.76 for two nights. Virtuoso’s rate was the same as the latter, incorporating daily breakfast (a $30 credit per person, per day) and $100 credit for spa or golf. Since Higgins’ daughter wasn’t eligible for spa sessions because of her age and golf wasn’t really their thing, the Virtuoso adviser offered the credit to be applied to food and beverage instead.

   In lieu of going through the hassle of planning a complex vacation by yourself, travel agents are relied on by tourism sectors like cruise lines, aware that purchasing a cruise experience involves multiple choices like room categories, restaurants, and land excursions.

     To get the most out of your luxury vacation whilst keeping your savings at bay, below are the three mentioned travel adviser consortia and their perks that come with booking through one of their members:

American Express Platinum Card Members

     Perks inclusive of early check-in and room upgrades when available; complimentary daily breakfast for up to two guests; $100-valued “unique amenities”; guaranteed late check out at 4pm; and five times the usual number of AmEx points or the ability to use Pay with Points on prepaid stays at Fine Hotels and Resorts Properties on AmexTravel.com could help you save about $550 at 1,100 hotels worldwide on a two-night stay.

Virtuoso

     Similar to AmEx’s benefits, Virtuoso also offers complimentary meals and Wi-Fi services and depends on the hotel’s availability for upgrades, early check-ins, and late checkouts. Additional perks may include complimentary airport transfers, spa treatments, and other meals – all with estimated savings of more than $500 per stay, available at 1,400 hotels in 100 countries.

Signature Travel Network

     With up to $500 savings on a two to five-night stay in luxury hotels, you can get complimentary full breakfasts, food and beverage credits, spa treatments, airport transfers, room upgrades, early check-ins, and late check-outs, varying by hotel.

     People don’t like paperwork, especially when it comes to travel-related documents. This hack for easier air travel is going to eliminate the hassle of filling out forms and other tedious processes. Flying is going to be much less stressful. 

     Just think of this – when you experience a delay in your flight, the travel insurance company is simply going to send you a text message that you’ll be receiving $100 for the inconvenience. No paperwork, no lines, and no hassle. 

     This advancement in the way travel insurance work is because of two companies, the Berkshire-Hathaway Travel Protection and the Allianz Global Assistance. These companies are using new technology where they can track your flight. And then if anything comes up, they can automatically file a travel insurance claim for you. 

     Since very few people know about this new advancement in travel insurance, it is definitely a hack that you should keep a note of. If you go through the traditional route of travel insurance, you’re going to wait for weeks before you will be compensated. 

     With automatic claims, it is going to be what the term suggests. You won’t have to fill out forms to file your claim. You don’t even have to file your claim at all. It’s going to be the insurance company who will do those things for you. 

Automatic Claims: How They Work

     Automatic claims mean that you don’t have to wait for a disruption in your flight to happen so you can file your claim. The travel insurance company will be the one to monitor the flights. If ever there’s a delay, the insurance company will be offering you a fixed amount. You don’t have to do anything from your end. 

     Apart from flight delays, insurance companies also provide benefits for damaged or lost luggage. The amount will depend on your policy. What is only required from you is for you to verify the damage or the loss. The payment will come almost immediately. You can say that it is indeed an instant claim. 

Benefits of Travel Insurance Auto-Claims

• It is automated and therefore easier. As mentioned earlier, you are not required to do anything so you can file your claim. You only have to ensure that the travel insurance company is aware of your flight information before departure. 
• You will definitely get better service. In cases where there’s a delay in your flight, getting a text message that you will receive $100 will at least make you feel a bit better. 

• Money comes in an instant. Imagine never needing to wait for a check to arrive. The travel insurance company will send the money instantly. While waiting for your flight, you can use the money to shop a bit or have a few relaxing drinks. 

     You may wonder why this automatic claim from travel insurance companies is not well-known. Since automatic claims are still building their momentum, it is easy for people to be suspicious of it. They think that instant payments are just too good to be true. But when you study this automatic claim closely, it has plenty of benefits.