Many people borrow money to buy ordinary consumer goods. Whether it’s small electronics, home appliances or other home furnishings, it’s always a thing that is expected to serve for some time. But what about a vacation loan? Are a couple of days traveling, relaxing, relaxing, swimming in the sea or climbing mountains worth of debt even for long months?
For obvious reasons, most people look forward to holiday. Nowadays, there are so many ways to spend it until a person can get a headache. It depends on everyone’s preferences, whether they choose a winter active holiday in the form of skiing in the Alps or just skiing in the New Town, going on a trip to Chernobyl to see what is left after one of the world’s largest disasters with their own eyes, visiting the most beautiful castles and castles in the Czech Republic or take a trip to get to know the most beautiful Czech lakes.
She can choose a summer holiday by the sea, a sightseeing weekend, a trip to an exotic country or she can experience adrenaline in the Czech Republic, for example on the best ferrata in the Czech Republic.
But everything has a small hook. Holiday simply costs something, sometimes “only” a few thousand, sometimes up to tens of thousands of dollars. Generally, it attracts mainly exoticism, and it specifically belongs to the more expensive. How to save when buying a holiday ? There are several ways, among other things you can use discount portals, which present many tours to popular destinations with a significant discount.
Holidays in exotic countries cost several tens of thousands of dollars – can significantly affect the family budget.
According to many statistics, most people save on vacation during the year (or use money from a savings account or building savings ). However, a significant percentage of people use the loan to pay their holiday. Is it okay?
There is no way back
Financial experts agree almost unanimously that taking a loan for something that only benefits a few days is economic nonsense. Similarly, they are thinking, for example, of loans for gifts, which increase each year in December before Christmas.
If you take a loan for a car or laptop, you can sell this thing in case of financial problems, get money to repay the loan and ward off even imminent execution.
Holiday, however, “consumes” in a few days or weeks. The loan is subsequently repaid for several months. When financial problems come, there is nothing to make the holiday financially worthwhile. And of course the same applies to the aforementioned gifts. Perhaps it is difficult for a person with financial problems to go to the recipient to take back the donated thing.
A small loan is also a commitment
The danger of holiday or travel loans is also that these are not extremely high amounts. In a mortgage, almost everyone considers all pros and cons very thoroughly. With lower loans, however, people often neglect to make a careful choice and, with a wave of their hand, add that it is only a few thousand.
While mortgages people deal with in great detail, small loans sometimes take quite thoughtlessly.
However, even small loans can cause large debts. In particular, short-term loans, quick loans or micro-loans have not only high interest rates, but also total APRCs. In addition, very high penalties are charged when payments are not made in time.
Online loans are also very attractive. Those interested in a financial injection do not even need to go anywhere, they handle everything from the comfort of their home. It may be a loan without proof of income, depending on the conditions of each provider.
This is one of the reasons why you should change your holiday loan. And if it is nevertheless thought to be a good idea, it should make a good choice for the provider of the planned loan.
Even cheap holidays become more expensive on the loan
People considering vacation loans should calculate everything thoroughly. Advantageous first-minute or last-minute trips can be made more expensive by borrowing to the extent that the word favorable will completely lose its meaning. All you have to do is calculate the price of the trip plus the price of the loan plus any other expenses that you will have to pay during the holiday preparation or during the holiday itself. The whole amount can be a radical intervention in the family budget (especially if only one parent receives only the parental allowance ).
A vacation loan does not have to mean problems only in case of its default. Since it is likely to be repaid within the next few months after the holiday, it may jeopardize the possibility of taking out a loan for something more important than the holiday. You never know what can happen – the car stops, the mobile phone breaks, the fridge or the washing machine won’t work.
Lenders can either directly reject the application due to unpaid holiday loan or increase the interest rate due to uncertainty. However, neither option is pleasant.
Exceptions prove the rule
There are loans which are subject to certain rules and are free of interest. These are the so-called first free loans, offered by a number of non-bank providers and usually have a shorter maturity. How does it relate to vacation?
It may happen that one encounters a very convenient trip, for example, to places you always wanted to see. It would be the fulfillment of his long-term dream, simply a unique opportunity that cannot be resisted. But there is some day to pay, and it is not saved. A free loan can be a good solution in this situation, thanks to which you can book your trip in time and pay for it.
Most often, it is required to repay this loan within 30 days and if it does, nothing is paid beyond the principal itself. So if you are absolutely sure that you will be able to repay the loan from the next payout and there will be no increase, nothing will prevent your dream vacation.