How To Justify A Holiday Loan | www.holidayloans.nz

It's not generally advisable to take out finance to fund a temporary, luxury expense such as a holiday, at least unless you can be confident of clearing the debt within a short period, such as over the twelve months before your next planned break. For 'routine' holidays, it's usually better to scale down your ambitions a little and choose a cheaper package, rather than running up debt which will need paying long after the relaxation gained from your days in the sun has faded.

When a holiday loan makes sense: Making the Most of Your Dream Break Opportunity.

However, like all rules of thumb, there are exceptions when traditional wisdom doesn't apply. If your holiday is a genuinely momentous event, a once-in-a-lifetime experience, then taking out a holiday loan to help finance it can certainly be justified. After all, this isn't going to be an everyday trip, so why not enjoy it to the fullest? Here are just some of the many benefits of using suitable credit to finance your dream holiday.

Easily Spread the Cost

Holiday loans are, like other personal loans, a flexible form of finance. You can choose how long a term to spread your payments over, to achieve the perfect balance of affordable payments and acceptable overall interest costs. Some loan deals also come with the option of a delayed start to repayments, so that you can enjoy your holiday and commence payments after you've settled back home upon your return.

Fixed Payments and Schedule

Unlike loading debt onto a credit card, a personal holiday loan will offer a fixed monthly payment amount with repayments spread over a defined schedule, so it's much easier to budget for. Credit card debt can long outstay its welcome, leaving you treading water just servicing the interest charges, but a personal loan will have a set end date to work towards, after which your debt will be cleared.

It Lets You Relax

With a holiday loan, you can relax and enjoy your break to the fullest, knowing that the financial aspects have been taken care of in advance. You'll know exactly how much you can afford to spend, and won't have to worry unduly about every penny nor about the state of your finances after your trip is over.

Low Rate Loans

You may be tempted by finance facilities offered by your travel agent or holiday company. While these may be convenient, they are very unlikely to be as good value as a holiday loan from a mainstream finance provider. Even for a dream holiday, there's no sense in paying more than you should, and a lower rate loan will give you the best value for your money.

Afford a Perfect Experience

If your savings can't quite stretch to the perfect dream holiday, a personal loan will allow you to go that little bit further in terms of cost, quality, and luxury levels. After all, if this is truly a once-in-a-lifetime experience, then the extra expense to make it a dream break to remember is well worth it, compared to settling for half or three-quarter measures and regretting your missed chances far into the future.

So what kind of one-off holidays are a good fit for finance? Examples include:

A honeymoon, making the perfect start to a new life together.
Visiting family overseas, where you want to enjoy your time together without worrying over financial constraints.
A 'bucket list' trip that you've always wanted to make, but couldn't afford without a little extra financial help.
A celebration holiday to mark a special occasion, such as an anniversary, a momentous birthday, or even retirement.

In all these cases, the expense and financial obligation incurred by taking out a loan can be justified by the unique importance of the occasion. However, it still pays to be sensible: don't let the exciting prospect of your future holiday blind you to following the essential rules of credit taken out for any purpose.

Be realistic with what you can afford, and don't put yourself on a financial tightrope when it comes to making your repayments. A few weeks of relaxing bliss on a tropical beach is not worth years of money struggles after it's over.
Accept that you may not get the headline rate offered in the advertisements unless you have perfect credit, but at the same time don't pay an unrealistic amount of interest in your eagerness to have your application approved quickly.
Think twice (if not more) before securing a loan on your home, as you never know what's around the corner financially. Tying your home into repayments on what's essentially a luxury is a large risk to take, so leave yourself with plenty of leeway, or preferably go for an unsecured loan for safety's sake.