This article looks at the possibilities for using unsecured holiday loans and other forms of borrowing to finance a summer holiday break.
The ideal situation is that we all have a savings pot specifically set up for holidays and breaks, to pay for our trips outright. However, the reality is that with so many drains on our finances, most of us will need to look at some areas of borrowing to shore up our finances. The key lies in picking the right type of finance.
Unsecured holiday loans
Many people are switching onto the benefits of taking sport tours to see their favourite teams in action in exotic new locations. Once, most fans were limited to supporting their teams on home turf only, but with the latest array of specialist travel and holiday providers offering excellent football and rugby tour packages, amongst others, it?s possible to follow a team ? and a sport ? around the world. This means double the excitement ? the passion of the sport and your beloved team playing to win and incredible new locations, exotic destinations and different atmospheres to enjoy and be part of. The question of course lies in how you finance these tours. Unsecured holiday loans ? or personal loans ? are a good way to borrow a sum of money at a reasonable interest rate and for an agreed amount of time. They don?t require security, such as a house or car asset and are simply taken out on the strength of your credit rating and individual circumstances. Be sure to shop around for the best interest rates, as these will have a real impact on how much you repay over the loan period. Typically, loans are repaid within one year at a minimum, through to several years. Obviously for an annual holiday, it makes sense to repay the loan before your next trip, so that you don?t find yourself financing a series of loans for holidays long ago enjoyed!
Other types of borrowing
For smaller loan amounts, some people prefer to use a zero or low life of balance credit card and these work well, providing you are disciplined about adhering to the loan terms. For example, don?t start spending freely on these cards ? use them for the holiday only and know your own budget amount. Work out how much you need to repay every month to clear the balance by the end of the promotional rate for zero percent promotional cards, or you?ll find yourself suddenly being hit by steep credit charges. Avoid simply using these cards for ongoing spending after the holiday, otherwise again you?ll find yourself caught in the interest trap.
Saving for next year?s holiday
Of course, sport tours are best enjoyed with money you?ve saved up beforehand. Rather than automatically trying to borrow, look for ways to save up for next year?s trip. Work out what budget you?ll need and put away an amount each month. You can do this painlessly by cutting back on other treats, socials, general shopping and spending, so that you can build up a steady savings pot to enjoy. Make sure you get the best rate of interest on your savings as possible, to maximise the benefits.
In conclusion, personal loans can be good tools for borrowing and funding a holiday, but must be used carefully and once you?ve shopped around for the most competitive deals. Ideally, start saving up a fund for next year?s holiday, to minimise your borrowing requirements next year!
AUTHOR BIO:
Jake Green writes regularly on sport and travel for a range of holiday websites and blogs. Recently back from a world rugby tour, he?s a great fan of travelling to see his favourite sports teams and follow his sporting passions in new environments. Happily he has an understanding wife!
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