If you have been wanting to take that holiday of a lifetime but never seem to have the money, a holiday loan may be a good idea. Here is a quick guide to holiday loans.
What is a holiday loan? – Holidays should be paid using your savings, however, if you need to take that break sooner rather than later, look at a personal loan. You can take a personal loan for three years at an interest rate of less than 5%.
Advantages of a holiday loan – The advantage of taking a holiday loan is that you can budget how much you can repay, depending on the years of repayment. If you have any extra cash, you can always pay back your loan with the cost of a small penalty.
Disadvantages of a holiday loan – If you have a low credit score you may not be offered the best interest rates.
Alternatives to a holiday loan – You can also look at applying for a credit card that offers 0% for an introductory period on balance transfers or purchases. This option is advisable to those who are borrowing smaller amounts and to those who can pay back the installments within a shorter time frame. Failed payments on this method can be costly.
Find the right holiday loan for you – Shop around for the best holiday loan deals to ensure that you will have to spend less to enjoy your dream holiday.