The holidays are fast approaching. Everyone, especially the youngest, long awaits the moment when the last bell will sound at school and the time free from studying begins. Also, adults very often plan holidays during this time to spend even a few days with their children. Of course, the best solution is a few days trip, because then we can really forget about work, school and everyday problems. And then it is much easier to relax and gain strength for the next months.
Unfortunately, such a holiday trip can cost a lot. We have to guarantee accommodation, meals and attractions that cost a lot in popular resorts. But as it often says: “One lives once”, so from time to time we allow ourselves for such financial “madness”. Even those who do not have enough money to afford such leave do it. They simply go to the bank and apply for a loan and that’s how they finance their holiday.
Banks are well aware of the fact that before the holidays they can have more customers who will want to use the loan. Therefore, they prepare special holiday loans for them and try to attract as many customers as possible thanks to such an offer. For every loan that the bank will grant improves its financial result, and that is what these institutions are all about.
Does the holiday loan always have to be the cheapest?
Most people think that if a company proposes something special to us, then it must be worth it. It is not different in the case of a holiday loan . What’s more, many people are waiting when such a loan appears in the bank’s offer and immediately applies for money for holidays. But is such a “super great” opportunity really the cheapest solution? It turns out that no and what at first glance in the ads looks great, after a more thorough check turns out to be a light bubbler. So what do we need to pay attention to when reviewing offers related to loans for holidays?
Usually, when banks advertise us in advertisements about the great loan they offer, they tell us that it has a very low interest rate. However, when we look at the commission in such an offer, it will often turn out that it is much higher than in a standard loan. And vice versa, if the bank tells us that we do not have to pay commission for the loan, let’s check its interest rate, as it may turn out to be much higher compared to the traditional offer. Of course, when comparing loan offers, it is best to check the APRC, as this indicator will show us which offer is the cheapest.
Sometimes banks actually prepare a special promotion for holidays and the loan has a really low cost. But in return, the banks require us to meet several additional conditions. For example, we must set up an account in a given bank or obtain a credit card. Otherwise, the low loan costs concern only a small amount, and with higher amounts, these costs increase significantly. And so you can still exchange. It is worth calculating all the fees related to obtaining a vacation loan (costs of entering a credit card, costs related to running an account, etc.) and only then to compare individual offers.
What to do not to borrow money for the holidays
As we are perfectly aware, each loan, and therefore a holiday loan, is a cost for us. Even if it is on really promotional terms, there are still some interest or commissions we have to pay. Therefore, maybe it is worth thinking about our leave earlier, to not pay these additional costs? We can put off a certain amount from our home budget and later spend it on vacation. How much to save? It depends. We can easily calculate how much money we need for our vacation. And if we want to go away every year for such a holiday outside the home, we divide it by twelve and get the amount we get, we transfer to a savings account. If we want to leave every two years, we divide it by twenty-four and transfer the amount obtained to a savings account.
Somebody would say that it’s hard to put down money every month, because most of us do not have too much financial surpluses. But if we take out a loan for our vacation, each month we will have to make money from our home budget for the installment. What’s more, it will be a higher amount, because we will get the commission or interest.
When planning a vacation, we always have to take into account higher costs. Therefore, if we are forced to borrow money on our holidays, let’s do it “with our head” so that we do not overpay for a holiday loan. And even better solution will be a systematic saving of money, which will allow us to reduce the baskets of our holiday.