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My dream trip to Spain- In desperate need of help! =(

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I've been dying to go to Spain since I was in high school. I've always been in love with Spanish culture and the people, and I've made it my life's mission to make it there to travel.
I'm graduating from college this December and after all the trials and tribulations I've encountered my gift to myself is to finally visit Spain.

This brings me to my problem. My original idea was to book airline tickets for my boyfriend and I to visit in March/April 2013. I was thinking of flying into Madrid and taking buses/trains to the cities we would like to visit (toledo, seville, barcelona). Accommodation wise we were just going to find hostels along the way.

I was then introduced to the idea of using a tour package, where all the flights, accommodations, some meals, and several tours are included. This sounded great and better money wise. However the more I researched the more I found that EVERY company has terrible reviews.

This is where I'm completely exasperated.
1) I'm unsure which would be the best financially, seeing as I'm the typical "broke college" student I'm not exactly blessed with wealth.
2) I'm worried that by booking with a travel company I may be making a bad decision.
3) grrrrrrrrrrr!

I am looking for any and all guidance. I don't want this trip to be a waste of time and money. So any advice anyone has would be greatly appreciated. I'm young and not very experienced with traveling outside of the USA.

Thank you!!

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