Using your credit card in another country can be the best traveling decision you can make, but only if you do your homework first. There are some crucial steps you should take before trusting the future of your once-in-a-lifetime vacation to a small plastic card. Without proper preparation, you might become stuck in an uncomfortable financial situation at best, and stranded with no options at worst. Before you start your traveling adventure, here are 5 ways to use your credit card in another country for the best results:

-  Research before you go to determine the best card accepted by the major vendors of your trip. It does you no good to choose a card no provider in the country accepts. Compare credit cards to get the most from your activity – do they provide insurance, do they offer credit card rewards such as air miles or fuel cashbacks, low interest rates?

-  Check the card issuer agreement – you know, that long and closely printed booklet you get with your card? Look for “currency exchange” or “foreign currency transactions” to see how much it will cost you to use your card out of country. Typically, there’s a 2% fee from the card issuer and a 1% fee from Visa, MasterCard, American Express etc. Still, it is usually cheaper than exchanging cash or buying traveler’s cheques, and a credit card provides a better local currency exchange.

-  Take other forms of payment because there will be places and vendor that do not accept plastic. Once you’re on your vacation or business trip, that’s not the time you want to learn you can’t buy lunch or make a purchase unless you have an alternative to a credit card.

-  Make a budget for what you want to spend and save all of your receipts. Keep track of what you’re buying and how much it is costing you so you can compare the receipts to the credit card statement when you arrive home. There could be errors or even out-and-out fraud, so be alert.

- Inform your credit card company of your plans to travel out of the country so they are aware and don’t stop any charges to your card as suspicious. By the same token, inform them of your return to your own country so they know anything that happens after this time is questionable. If you keep the lines of communication open between you and your credit card company there’s very little risk of a major problem occurring.

There are a lot of details when it comes to traveling out of the country, but one of the primary concerns should be the financial situation and how you’re going to handle expenses on the way. A travel credit card in this case is not only convenient, it can be the best way to make the trip as smooth and problem-free as possible.

Recent research by online price comparison site Moneysupermarket.com, showed that one in five homeowners was considering taking out a loan to finance DIY and home improvements.

This raises an interesting question about the value of home improvements versus the cost of financing these projects and whether the ultimate return is worth the investment.

Certainly most homeowners will have a variety of reasons for deciding to indulge in some holiday DIY projects. Many people enjoy it for the fun and satisfaction of being ‘hands-on’, others find it to be a more cost-effective way to improve their home than getting in tradespeople to do the job.

Some like to make small seasonal changes to their homes to keep up with trends and fashions – for example those who regularly re-decorate, put up fresh paint and wallpaper, change colour schemes and window dressings and refresh furniture and accessories on a regular basis.

Others are looking forward to the longer term implications of improving their home. For example, by installing underfloor heating, building an extension or updating a bathroom. These projects can add to the value of a home.

For small projects, financing should ideally be done via savings and careful budgeting. Borrowing money to finance trends is like clothes or hobby shopping on a credit card – not the best way of managing your personal finances

If however, your aim is to add value to your home through carefully chosen, high value projects, then research. There are resources in print and online to advise on the average cost of a large home job and the amount it may add to your home.

Get the opinion of a realtor or building expert. It may be that the outlay and time involved doesn’t actually justify the end sales price. On the other hand, your research may reveal that there’s value in carrying out the project.

If so, take out loans with care. Avoid spending on expensive credit cards and bypass your bank as the first port of call. The cheapest loans will often be found by passing high street banks and brokers and heading directly online.

Use a price comparison site to find the best deals for you. Aim to repay back the loan as quickly as possible when inputting in your criteria, as this will lower the cost of finance overall and avoid the debt becoming a burden.

Ideally save a chunk of money to put towards your project in advance. A careful budget will usually reveal where cuts can be made. Factor in takeouts, ‘mystery’ direct debits, cups of coffee and other treats and you could be surprised at what’s left!

Find a reputable lender, look for an account with the best interest rate and the fewest charges. Do your sums and don’t be swayed by advertising or promotional ‘incentives’.

Be sure that you can repay your loan and consider whether you need repayment insurance if you’re put out of work in the meantime or lose your income.

Be warned that loan protection insurance can be high if offered through the loan provider. It may be worth seeking unemployment and accident/sickness insurance to protect your income and repayments to another provider, to guard against the worst happening.

Essentially, think carefully and fully when considering taking out a loan to finance home improvements. Do the maths, do your research and aim to repay back any borrowing as quickly as you can, or the debt may last longer than your new bathroom.

Saving is a very important part of financial stability, yet many people neglect to focus on saving and some have no savings in reserve at all.  People have many excuses for not saving, including that they do not make enough money or that they are planning to start a savings account when they are more financially secure, but the truth is that these excuses are leaving these individuals vulnerable to financial devastation in the event that the unexpected happens.  Saving money for the future may seem like an impossible task, but once you get started you will see that it can be easier than you ever imagined.

An important part of saving is having a budget.  A budget provides you with a plan for spending that allows you to have some money left over at the end of the month after all of your necessities have been paid for.  This is necessary to know where your money is going each month and how much you can afford to put into savings on a regular basis.  Many people that follow a budget list the amount that they agree to put into savings each month as an expense on their budget and remove the money from available spending funds as soon as it is received.

Experts recommend saving at least 10% of your earnings in a savings account for future needs.  Although this may seem like a large amount, it really is not and after a few months of removing the amount from your available funds as soon as you are paid and you will not even miss the small amount that is helping your savings accumulate.  If you are finding it difficult to save 10% because your monthly expenses eat up most of your paycheck, you need to sit down and identify some areas where spending can be cut before you find yourself deeply in debt.

There are many different ways that you can cut spending to increase savings.  Some people choose to take their lunch to work each day instead of purchasing a high priced prepared meal.  Others choose to eliminate unnecessary cable and cell phone packages to reduce spending.  Finding creative ways to reduce your spending to a level that will allow you to save at least 10% of your income in a savings account will go a long way towards securing your financial future.

Some employers make it easy for you to save money quickly by allowing employees to deposit their paychecks into multiple accounts using direct deposit.  The amount diverted into each account can be set as a particular amount, such as $50 per check, or as a percentage of the total amount.  Using this method to place 10% of your paycheck into a savings account automatically dramatically reduces the risk that the funds will be spent on other items instead of being saved.  Saving is easier than it seems when you focus on your financial goals and make an effort to follow your budget.

Saving enough to be able to handle the unexpected expenses that occur in life can be very difficult for many people.  They may not make a lot of money and believe that they cannot save a significant amount or they may be dipping into the funds of their savings account to pay for other expenses.  Saving money can be accomplished by anyone at any income level, as long as they are dedicated to creating a saving system and following it until their financial goals have been reached.

Reduce Unnecessary Expenses

Most people have things that they spend money for on a regular basis that they could eliminate from their budget and never miss.  Instead of purchasing lunch at a casual restaurant or fast food kiosk each workday, try taking your lunch with you and pocketing the $6 or more spent each day.  At the end of the year, you will have saved over $1,200 simply by changing your eating habits and taking your lunch with you to work.

Inexpensive Entertainment Options

Cable television is one of the biggest household expenses and many people do not watch enough to justify all of the channels purchased.  Movies and DVD box sets of television shows can be purchased fairly inexpensively at a number of stores that specialize in reselling used media items.  If you are only watching a few hours of television each day, consider eliminating expensive cable and investing in a DVD collection of shows and movies you enjoy.

Conserve Energy

Energy bills can take a large bite out of available finances.  By using some simple energy saving methods, such as replacing old weather stripping, turning down the thermostat a, or turning off the lights when you leave the room, you could be saving hundreds of dollars on your energy bills every year.  The price of gasoline has skyrocketed in recent years but by carefully planning your day, you may be able to reduce the amount of miles that you drive and the amount of gasoline consumed.  Plan errands for the drive home from work so that you are not making a separate trip to save gasoline.

Buy Store Brands And Generics

Many people purchase brand name items, not because they are better, but because that is what they have been programmed by commercials to do.  Many store brands and generic items are just as good as the name brand items, but cost a lot less because you are not paying for the name and the advertising associated with the product.  The price of these off brand items is typically 30% less than those of comparable name brand items, which is a lot to pay for brightly colored packaging and flashy commercials.

One of the problems facing the nation today is the amount of debt accumulated over the last decade.  Many people have wasted a great deal of money on things that do not retain value, such as the latest electronics, expensive or fad fashions, and luxury vacations.  Some believed that spending the equity in their home was a good idea while others believed charging things to their credit cards was the answer, forgetting that all of the purchases would have to be paid off eventually.  Now, credit lines are being reduced and home equity loans are difficult to obtain, leading to difficulty maintaining current lifestyles.

Avoiding the tricks that result in wasted money will allow you to save quite a bit of your income each month for paying off credit card balances or paying for living expenses.  It is easy to identify them once you have been alerted and you will be able to see these tricks used in various ways depending on the situation.  Many retailers use a wide array of different tricks to get you to purchase more than you intend and other businesses have their ways of getting you to spend more money with their company as well.

Don’t Pay Extra For Convenience

One unnecessary thing that many people pay for is the convenience of having items just a little bit faster or easier that it would be under regular circumstances.  A perfect example is paying ATM fees for withdrawals because you went to another bank’s ATM.  There are enough bank branches for most major banks that if they planned their purchases ahead of time, then they would never have to use the ATM of another branch resulting in fees paid to both banks.

Eliminate Unnecessary Expenses

Many people have unnecessary expenses that they pay for every day that does not register as wasted money because the purchase amount is so small.  What they fail to realize is that small purchases can add up to a lot of wasted money.  For example, a person that purchases coffee at the neighborhood coffee shop for $2.50 each day could save themselves $625 per year by brewing their own coffee at home and bringing it with them to work in a reusable travel mug.  Bringing lunch to work each day instead of purchasing lunch at a fast food place or casual restaurant could save more than $1,200 over the course of a year.

Only Purchase What You Intended

Retail stores are experts when it comes to convincing people to purchase more than they really needed or came in to get.  In order to help you resist the temptation, you should make a shopping list of the items to purchase prior to going into the store and follow the list while shopping.  By only purchasing what is on the list, you will save money and avoiding impulse purchases that tend to accumulate in the home.