Do you ever feel like you just NEED a holiday? Do you find yourself daydreaming of adventure where the grey skies of home feel a world away? If you’re anything like me, you’ll be drifting into daydream more often than not. But… like me, you haven’t got a money tree growing in the back yard have you?
The sad truth is, too many of us put off taking that holiday we’ve been dreaming of because we simply cannot afford it, so we routinely carry on slogging away, too easily forgetting to pause and take a step back from the daily grind.
But it doesn’t have to be this way!! Even if you cannot afford part or all of your holiday, you still deserve to have a getaway where rest and relaxation are top of the itinerary list and lucky for you, there are options available to fund your getaway on debt… Don’t panic; it’s not as scary as it sounds!
Whatever getaway you’re looking for, be it low-budget or luxury, there are various debt financing options available according to your holiday needs. There are some higher and lower cost options; providing you can sensibly afford the repayments. The lower cost option is the most ideal one to secure; however, depending on your situation lower cost isn’t always available.
Caption: holiday loan
Several financial institutions offer low cost credit cards with no interest charged if the balance is paid off within 55 days from the date of purchase. After this period, a lower interest rate of around 10-12 percent applies. There are other credit cards available with perks such as frequent flyer points, no annual fee, travel insurance or reward points which can be used to get free hotel stays, gift cards and various other rewards. Low-cost cards usually offer the most value, but it can be worth comparing credit cards to see what would best suit you. There are various sites dedicated to credit card comparison, such as www.creditcompare.com.au
Unfortunately, credit cards might not be available to everyone, especially if you are looking for a bad credit loan. In this case there is the option of taking out a small personal loan (available in more western world countries). Personal loan rates vary depending on providers and the local laws in each country. For example, in Australia, these types of loans are capped at 48% annually but in the US laws the laws are more complex and can vary from state to state. Before signing up, it is important to check the fine print and be fully aware of the overall interest rate you will pay. It is also good to note that the interest rate is generally based on a reducing balance; this means the faster you pay your loan off, the less overall interest you pay! Try taking out a loan over a longer period of time and making extra repayments where possible.
There are many different views people can have on what a holiday involves… some might want luxurious relaxation by the beach whereas others might want action packed sight-seeing adventure but whatever your preference, if you are going to take a holiday with a significant portion on finance, it is important to ensure you don’t leave too much debt to come home too. Before considering financing your trip, make sure your budget allows for repayments and be sure to set yourself reasonable limits. After all, the idea of a holiday is primarily to relax, de-stress, unwind… all the things which rejuvenate us and are good for our mental health! Having a large debt when you return home can have the opposite desired effect of your holiday by adding more stress; so avoid where necessary and only consider these options if you are certain they will not lead to financial hardship.
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