Conventional wisdom dictates that a holiday is a luxury. As such, the expectation is that someone would take a holiday using savings, or surplus income. However, research shows that more people are taking on debt to go for a holiday.

According to a survey conducted by the website Credit Cards Compare NZ, 1 in 3 New Zealanders indicated that they would be willing to take on credit card debt to go on a holiday. So, what drives New Zealanders to take out debt to go on holiday? There are multiple contributing factors, and below are some of them.

1.   Their upbringing

The survey by Credit Cards Compare NZ found that, there is a generational gap when it comes to credit card debt for leisure purposes. The survey found that baby boomers are least likely to take up credit card debt for holiday purposes. 31% of the surveyed boomers said that they would never take up credit card debt. They were followed by millennials whose figures stood at 25% for those who would never take up credit card debt. The highest percentage of those who would take up credit card debt for a holiday is Generation X. Only 9% of them would never take up credit card debt for a holiday. One thing that separates Generation X from the rest is their upbringing. These are people who grew up when social values were changing. For instance, women were beginning to take up a more active role in the workplace, cutting on the time spent with children. It is a generation that grew up disaffected and care-free. As teenagers, they were commonly referred to as slackers. In adulthood, they are a generation with an above par work-life balance. These issues reflect in their willingness to take out a credit card to go on holiday.

2.   The need for adventure

According to the survey by Credit Cards Compare NZ, women are more likely to take on a credit card to go on holiday. This indicates that women are more adventurous, and want to experience the world more than men. Adventure is a compelling reason to take on credit card debt. However, this shouldn’t be construed to mean that women are less prudent than men. The research revealed that men are equally as likely to take out credit card debt. The difference is that, they are likely to spend it on big-ticket items such as televisions and refrigerators.

3.   Credit card rewards

As per the survey by Credit Cards Compare, one of the things that makes credit cards popular is the rewards. The survey indicated that 1 in 2 New Zealanders wants a credit card that has rewards. They are also interested in low-interest rate credit cards. These rewards and low costs are a major incentive for people to take out debt and go on holiday. The knowledge that the debt is easily repayable is a good enough reason for one to take credit card debt, and travel the world. It’s a nice way to have fun without a strain on one’s finances.