HONOLULU (KHON2) — Holiday travel can be both exciting and expensive. Whether it’s visiting family, exploring new destinations or experiencing the magic of the season, the costs can quickly add up.
KHON2.com was able to catch up with Kevin Morisoli, a local wealth management advisor with Northwestern Mutual in Honolulu, who was able to provide some insights into how families can prepare for the financial challenges of holiday travel and navigate them more smoothly.
“Budgeting is a big part of it,” Morisoli said. “But the key is being strategic with your finances—especially for the holidays when everything can feel so urgent.”
Using credit card points wisely
One of the most effective ways to cut down on holiday travel expenses is to leverage credit card rewards.
“I always tell my clients to be strategic with their credit card points. If you’ve been using a rewards card responsibly throughout the year, now is the time to cash in,” Morisoli explained. “These points can make a big difference, especially when it comes to flights and hotel stays. Some cards even offer great travel rewards without too many blackout dates.”
Morosoli recommends saving up those points for holiday travel, which can significantly reduce the burden of high airfare and accommodation costs.
“This is one of the easiest ways to offset travel costs and not dip further into your budget,” he said.
Planning early, but not too early
Another piece of advice Morisoli shares is to plan ahead but not necessarily months in advance.
“It’s all about timing. For example, airline prices can vary significantly depending on the day of the week you book,” he said. “If you can book flights in advance, but spread out your spending, it can help ease the financial strain.”
Morosoli suggests breaking up costs. For example, you can buy plane tickets first and then book rental cars or hotels at different times. This can help keep finances more manageable.
“If you wait until the last minute and try to pay for everything at once, it can really hurt your cash flow,” he said. “Breaking up the purchase dates is a simple way to reduce stress later.”
Handling holiday debt
Unfortunately, many people end up in debt after holiday travel due to last-minute purchases or spending more than they planned.
“The New Year often comes with a wake-up call for many people who racked up credit card debt,” Morisoli said. “They’re looking at high interest rates, sometimes as high as 25% or 30%. That can be incredibly hard to manage, especially if you don’t have a plan to pay it off quickly.”
The problem, according to Morisoli, is that these high-interest rates can trap people in a cycle of debt.
“When you make a minimum payment on a $5,000 balance with a 30% interest rate, it’s not going to feel like you’re making progress. You’re just paying off the interest and not chipping away at the principal,” he said. “That’s where it becomes difficult to get ahead.”
Morosoli cautions people to avoid putting all their travel expenses on credit cards if they don’t have a clear repayment plan.
“If you do need to rely on credit, look for options with lower interest rates or balance transfers that could help you pay down your debt faster,” he advised.
The importance of tracking spending
Morosoli also recommends tracking your holiday spending carefully.
“A lot of people don’t realize how much they’re spending until it’s too late,” he said. “A small item here, a little extra there — it all adds up. So, I tell my clients to really monitor those expenses and set a clear limit on what they’re willing to spend.”
One way to do this is by reviewing last year’s holiday spending.
“By looking at your expenses from the previous year, you can get a better idea of what you’re likely to spend this year. That way, you can plan more accurately,” Morisoli explained. “And if you’re really committed, you can start saving early to make sure you don’t get caught off guard.”
Avoiding the debt trap
Dealing with holiday debt can be overwhelming especially if it accumulates over multiple years.
Morisoli explained that many people fall into this cycle after an unexpected expense or a large event like holiday travel.
“Once the cycle starts, it’s hard to break,” he said. “A flat tire or an unexpected medical expense can easily push people into more debt, and before they know it, they’re juggling multiple years of debt.”
For those dealing with long-term holiday debt, Morisoli recommends working with a financial advisor or considering debt consolidation options.
“It’s about getting control over your finances and having a plan to move forward,” he said. “Whether it’s a balance transfer with zero interest or another strategy, it’s possible to dig out of that hole, but it takes discipline.”
Seeking professional help
Many people worry about the cost of working with a financial advisor, but Morisoli reassures that many advisors offer free consultations.
“I understand that finances can be intimidating,” he said. “But most financial planners, like myself, offer consultations with no fee. It’s an opportunity to discuss your situation and see how we can help you without any upfront costs.”
In addition to financial advisors, there are nonprofit organizations that offer free financial advice and help people get back on track.
“I always encourage people to seek guidance if they’re feeling overwhelmed,” Morisoli said. “Having someone to talk to and hold you accountable can make a big difference.”
Holiday travel doesn’t have to leave you in financial turmoil. By being strategic with credit card points, planning your purchases wisely and avoiding the debt trap, you can enjoy your holidays without worrying about how to pay for them.
With careful planning and, if needed, the support of a financial advisor, you can set yourself up for success in the New Year and beyond.
“Financial planning isn’t just about managing money,” Morisoli said. “It’s about being proactive and prepared for the unexpected. And when you have a plan in place, you’re not just reacting—you’re taking control.”
This is the third in a four-part series in which KHON2.com sits down with a local wealth management advisor to discuss planning for holiday spending, how to navigate the finances of holiday travel and the importance of seeking finance therapy.