Friday - - Beauty -

Q I’m go­ing on hol­i­day soon. Can you ad­vise me on the best pay­ment op­tions? Are credit cards best? A Credit cards are with­out doubt one of the more ac­ces­si­ble op­tions, of­fer­ing con­ve­nience and ease of use. But you need to be aware that they may have cer­tain se­cu­rity is­sues. That aside, you need to know the fine print of the credit card while us­ing it out­side the home coun­try as there might be sup­ple­men­tary charges such as a sub­stan­tial ex­change fee, per trans­ac­tion fee or charges on cash with­drawal when us­ing for­eign ATMs. Also, the in­ter­est rates may vary from card to card. Us­ing a credit card will also re­quire some de­gree of dis­ci­pline as it will be harder to track the spend­ing than when you are us­ing cash.

In the UAE, we have sev­eral credit card op­tions that are de­signed for use over­seas and earn you ex­tra miles or re­ward points on over­seas pur­chases. Al­ways pick a cost-ef­fec­tive plas­tic card while trav­el­ling.

I would also ad­vise hav­ing a choice of spend­ing op­tions. That would give you peace of mind when you travel. Pick up a credit or debit card de­signed for world­wide us­age and do most of your spend­ing on that. Also, take some cash con­verted into the cur­rency of your des­ti­na­tion to pay for taxis or tips at restau­rants.

You could also con­sider trans­fer­ring the cash on a pre­paid card, known as a travel card, for the ex­tra se­cu­rity, as it pro­vides an eas­ier and flex­i­ble way to han­dle spend­ing and is ac­cepted widely. It also comes with reload­able and mul­ti­c­ur­rency op­tions through which one can ac­cess the money in a for­eign coun­try in a more se­cure way.

DHIREN GUPTA, man­ag­ing di­rec­tor of 4C Mort­gage Con­sul­tancy, is a fi­nan­cial ex­pert

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