Travel/Vacation :: Tips and Advice |
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How To Avoid The Currency Crunch When Traveling Abroad |
| When traveling to a foreign country, converting currency can be quite a hastling and often financially strapping proposition. |
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A number of options are available:
1. Purchase the foreign currency before you leave the US. Unfortunately, US banks charge a prememium for such conversions and therefore don't present you with the market rate. Also, if the rate changes (as it may in volatile markets)in the few days between purchase and usage of the funds, your purchasing power is decreased. In addition, if you are pick pocketed, all your money for an entire trip is gone.
2. Purchase Travelers Checks before you leave the US. Good for security purposes, but banks take an even greater premium on converting checks to currency than currency to currency. Even black marketers (those who will convert on the street) will give less for travelers checks than dollars, that is if you can [find] black marketers.
3. ATM Withdrawals. Good for security purposes, but unless you have an account with the local ATM bank you will be charged a withdrawal fee. These tend to be significantly greater overseas than they are in the US. Also banks take a conversion premium off the top.
4. Visa/ Mastercard Credit. The best option. Contact your Visa/Mastercard rep. Send a check to credit your account the amount of money you wish to spend on your trip. Withdraw freely from any ATM machine. Visa/ Mastercard withdrawals don't carry ATM fees, you get the true currency conversion rate, and your not charged insane interest rates for cash advance because your account is pre-credited.
Article Source: www.activehowto.com
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Posted 2006-01-03 00:00:00 By Rick Atlas
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