Are travel money cards a good idea for Australians planning to holiday overseas?

On my first big overseas trip, back in the mid 90s, I loaded up my credit card with cash.

While I was drawing on my savings, I made cash advances and purchases with virtually no fees, apart from currency conversion fees, which were modest.

That bank wised up to that one! By my next big trip, that card was charging like a wounded bull for everything. Time to change banks.

I’ve looked at travel cards. But they have always seem to be an expensive way of carrying money. Either they monster you with poor exchange rates (up to 5 per cent). Or they charge fees for cash advances, or withdrawal fees, or simply putting money into the account.

I’ve compared them to what I currently use, which is the credit card and savings from my existing arrangements. And, for me, travel card fees just don’t stack up. My existing arrangement is cheap and, obviously, simple.

Most Gen Xers have mortgages. If you do, and particularly if you have a professional package loan product, call your bank and quiz them about your existing fees for travelling. Ask about currency conversion fees and cash withdrawal fees in particular, plus whatever other fees they might charge, for drawing cash and using your credit card.

If the fees seem high, shop around for a money travel card. Choice and TripAdvisor usually have some up-to-date research. And the market is forever changing.

When travelling, cards will often charge per transaction for getting cash. If that’s the case with yours, take out several days’ worth of likely cash needs at a time.

Bruce Brammall is the principal financial adviser and mortgage broker with Bruce Brammall Financial (www.brucebrammall.com.au) and author of Debt Man Walking.