Thinking of booking your annual holiday?
January 15, 2008
With Christmas and the New Year now over many people will be thinking about getting their annual holiday booked up, whether it is a spring vacation to help shake off the cobwebs of winter or a fantastic summer holiday in some far flung destination. One problem that many of us encounter at this time of year however is finding the cash to pay for a holiday. Having shelled out for the expenses of Christmas and the New Year most of us are struggling to find money to pay the bills never mind book a holiday.
However, the other thing to bear in mind is that the cost of holidays at this time of year is often lower, which means that if you can afford to book your holiday now you could save a small fortune compared to the amount that you might pay if you decide to wait. This is why so many people are keen to book their holidays right away when the New Year comes around – just like many other items you could find the cost of some holidays slashed in the January sales.
The good news is that if you are looking to save money by booking a bargain holiday but you do not have the ready cash available there are still other solutions available to you. Although credit conditions are tighter these days than they have been in the past there are still some good deals on finance available for those with decent credit, and for those with poor credit who are also homeowners there are also some good deals still available on secured loans.
One thing to remember is that although many of us can get finance in order to pay for a holiday and therefore reduce the risk of missing out on good offers, it is important that the loan or credit that you take is organised in such a way that will ensure that it is fully repaid before your next holiday booking time comes around, which generally means that you should repay the money you borrow within twelve months. If you do not do this you will find that you are still repaying the finance when it is time to book your next holiday, and this can quickly lead to spiralling debt.
If you are booking a once in a lifetime trip, and therefore plan to make this your only holiday in a few years, as many people tend to do, then it may be okay to take finance out over a longer period, as you will not be spending money on another holiday whilst still trying to pay off this one. Otherwise, if you are using finance to pay for your annual holiday, stick to the twelve month rule when it comes to repayment.
If you think that you will be in a position to pay off the amount that you borrow for your holiday within a matter of weeks then you will fare best with a credit card that offers rewards such as travel rewards, cash back, or discounts. This is because you will not be charged interest anyway, because you will be paying back the money within the interest free period, so you can benefit from short term interest free credit and the chance to earn rewards.
If you need to spread repayments over a longer period then you have a number of options. You can opt for an interest free credit card, which will give you a specified period of interest free credit, a personal unsecured loan, which is generally available to those with good credit, or a secured loan if you are a homeowner.
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