Finally on the deserved dream vacation
Those who have not been able to travel for many months or even years will surely have the desire to fly away again after a while to get to know new countries, cities and cultures or to simply relax again, with sun, beach and sea. A trip prepares relaxation, new impressions, positive emotions and lets you forget everyday problems and stress.
A vacation can unfortunately be really expensive, regardless of whether you are traveling with the whole family, with friends or alone. Not only the flight and accommodation have to be paid for, leisure fun should not be neglected either. You would like to experience things that you cannot do at home, such as a surf course or a safari tour. Such trips are very expensive, especially in the high season.
Even if your own financial means are insufficient, you don’t have to do without your dream vacation. A vacation loan can help in this case. With such a loan you have enough money at your disposal and you don’t have to save for months and do without a lot. The repayment period can be chosen so that the monthly debit remains manageable. Because dreaming of a great vacation is never fun in the long run.
Vacation credit and what needs to be considered
Before you take out a loan to finance your vacation, you should calculate exactly how much money you will need. Not only flight and accommodation come with costs, often the additional costs are even higher than the actual travel costs. The surf course, the eventful day trip, the educational visit to the museum, the relaxing wellness program, the exotic dinner and the entertaining nightlife can really cost money. You should take these costs into account when calculating the loan amount. After all, you don’t want to turn every cent twice at your holiday destination, but rather enjoy your holiday to the fullest.
It is always advisable to take out a slightly higher loan amount in order to create a small security cushion. Because you never know whether there will be a sudden visit to the doctor on vacation, which in most countries, despite health insurance agreements, still has to be pre-financed. There may also be unexpected costs during the repayment period that were not planned when the loan was taken out. For example, a car repair or a defective washing machine can lead to financial bottlenecks.
The term should not be chosen too long for a holiday loan. The next vacation is coming and who wants to pay off his old vacation at that time? So if you travel a lot, you should choose the term so that it ends before the next trip, so that no more loans accumulate. It therefore makes little sense to pay for a two-week vacation trip over two years. A term of one year would be more appropriate. Of course, things look different on a world tour that spans several months. The application amount for such a project is higher. In such a case, it is advisable to choose a longer loan term in order to benefit from lower monthly installments. The rule of thumb is that the vacation credit should be as high as necessary and as low as possible.
Compare well and choose the cheapest option
Many travelers who are considering a loan to finance their vacation will still contact the travel agent or travel agent for this. While this is very convenient, it is usually very expensive. In contrast to direct financing through the provider, a separate loan is usually the cheaper option for holiday financing.
Banks also offer vacation loans. However, the interest rates are usually high because it is a non-earmarked loan and is therefore not subject to any collateral. In contrast to a car loan or a building loan, a vacation loan has no material equivalent. Using the overdraft facility can also be really expensive. Especially on vacation, it’s easy to be tempted to overdraw your checking account. The interest rates for overdrafts are often higher than the interest for a normal installment loan.
Personal loans offer a simple and inexpensive alternative
An alternative to vacation loans from travel providers and banks are private loans, which you can apply for online easily and without red tape. For example, with Fellow Finance you can apply for vacation loans of between USD 1,000 and USD 10,000. The loan search is carried out anonymously via the Fellow Finance credit platform. You can have a say in the amount of the interest rate and adjust the amount of the monthly installments to your financial needs. Your loan request appears on the service platform and can then be financed by private investors.
If these private investors agree to your terms and conditions, the business is concluded and nothing stands in the way of your vacation. The loan amount is repaid in monthly installments at a fixed interest rate that does not change during the term. Vacation loans from Fellow Finance are not tied to a specific purpose, which gives you great flexibility in choosing your trip and travel provider, so that you can help finance a small vacation allowance right away. With a vacation loan, the dream of traveling can come true.