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Douglas or Saugatuk MI - any preference?

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We are a family of four, myself, husband and kids 19 and 15 and are looking to spend a week in either Douglas or Saugatuk Mi in end of July - beginning of August this year. We are going to rent a house / cottage, but wonder which is the best place to stay for the beaches or shopping, restaurants etc. Is there much difference between the two or do they blend into one. We will also be renting a car. Kids love the beach! Any advice please?

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