International travel is booming as people take advantage of slightly reduced fares and the northern hemisphere summer. This, of course, raises the perennial question of the best travel finance to use. Travellers’ cheques are old hat; it’s really a choice between credit cards and debit cards – and you need an armoury of these to cater for whatever may come your way.

First, carry a credit card for the sole purpose of checking in at accommodation. Everybody will want an imprint of the card to pay for “contingencies”, but though they are quick to put money on, they can be slow to take it off.

Getting cash for your overseas travels is still necessary in many countries, but for everything else you can use plastic.Credit: iStock

It’s embarrassing and inconvenient when your credit card is blocked because some hotel has used up your credit limit. Take it from me, fixing this is a matter of days not hours – hence my recommendation of a dedicated credit card. I use American Express for this. I never use it for overseas transactions because of the massive fees; it sits in my wallet purely for check-in purposes.

Next is your choice of debit or credit cards. I’m a big fan of debit cards because you know exactly what you are spending, and you never come home to a large, unexpected credit card bill.

I still recommend carrying a second credit card as a backup in case your debit card is compromised, or you need emergency money. I use Latitude, which has no fees, but hits you with a usurious penalty interest rate of 27.49 per cent if you don’t pay the entire balance on time.

If you intend to withdraw cash from ATMs around the world you should definitely use a debit card. The fees for cash advances on credit cards are huge – for example, Latitude charges 29.99 per cent a year. I haven’t used cash when travelling overseas for years, but friends tell me cash is essential if you are going on trips where you need to tip the guide.

The banks are pushing cards for travellers that lock in a currency rate on their card before you leave home “to guarantee you won’t be hit by adverse exchange rates as you are travelling”. The problem is that the banks hit before you go by charging high commission rates.

Thanks to a reader who travels regularly for business I have discovered what, I think, is the perfect solution: the Wise debit card.