Financing this summer’s holiday with borrowed money is not very unusual. In fact, as many as 17% of Swedes have at some time borrowed money for their upcoming trip. Now that holiday times are approaching a storm, it has been estimated that about 15% will take out a loan or credit to get some extra money to travel for. Sure, this can be a great way to treat yourself a little extra, but if you are not careful, it can lead to payment difficulties and at worst deep debt burdens.
Below, we will take a closer look at how you can best expand your cash balance while staying away from dangerous debt traps.
Travel for borrowed money?
One constant question when it comes to traveling for borrowed money is whether this is really a good idea. Shouldn’t they travel for their own money? Well, of course, it would be best if you could take your own money to treat yourself to a wonderful trip. However, not everyone has the opportunity.
Maybe you have no saved capital or maybe you simply can’t afford to spend a lump sum to pay for a trip. Should you then ignore a little well deserved vacation? No, we don’t think so at Hardwork Money Bank.
Pay off your trip
A loan can thus be the last resort for those who would like to travel but who are unable to pay the trip directly. After all, if you take out a loan or a credit, you can repay the money over a longer period, which more can manage.
So the answer is simply that yes, as long as you are realistic about your own ability to pay, a loan or a credit can actually be a good alternative. However, as I said, it is important to be careful about the type of loan you take. There are alternatives that are both better and worse, especially if you have a relatively strained economy.
Take sms to travel?
When it comes to financing a trip with borrowed money, you should try to avoid sms loans, at least if your finances are not completely stable. This is because the interest rates can be quite high and if you pay with the repayment your bill can be very expensive. In addition, maturities can be quite short and if you borrow a larger amount of money it can be difficult to pay back.
Of course, if your finances and your ability to pay are good, an sms loan is no big problem, as long as you pay back in time and find a loan that is cheap. If you are looking for a cheaper trip, you can even take a free loan with a 30 day installment. Then you can get away really cheap.
Credit cards – the best option
The best option when it comes to loan financing your vacation is probably a credit card with 45 interest-free days. If you are careful about paying within these interest-free days, the bill need not be at all expensive. Just make sure to make a statement of your expenses so you can see if you really can handle the repayment.
If you choose to invest in a credit card, you should also make sure to choose one that gives you benefits during your trip. There are credit cards that:
- Includes travel insurance. This reimburses, among other things, the costs of medical care, delays and unexpected cancellations.
- Missing fees when paying with the card abroad. You also do not have to pay a fee when you withdraw money from an ATM abroad.