Summer time – vacation time! But not always there is so much money left. If you want to treat yourself to a dream holiday after a busy year, you may need to take out a loan. There are a few things to keep in mind so that the days off do not turn out to be a cost trap.
Credit for the holidays: is it worth it?
While normal vacation travel can usually be covered with the savings, this looks different for longer or unusual holidays. Especially language trips, the honeymoon or a trip to a distant destination can go into the money and burden the account heavily. If you do not want to do without such travel, you may have to take out a holiday loan. This is possible both with the tour operator and with the bank.
Whether the loan is really worthwhile in the end or whether you should rather save on your own depends on the journey, the personal circumstances and the conditions. The amount of the down payment also plays a role.
Vacation loan with tour operator and bank
There are now a handful of tour operators offering credit for the booked trip. The contract is already concluded in the travel agency and gives holidaymakers the opportunity to settle the bill within one year. The conditions can be quite different here and should be checked in advance exactly.
In addition, a loan for the holiday, of course, be included in the bank.
Since it is a normal consumer loan, no information on the purpose of the money must be given. The problem, however, is that most banks estimate significantly higher minimum loan amounts. People planning a trip usually have to resort to a personal loan. However, as the purpose of use plays a crucial role, it can sometimes be difficult to get a loan for the dream trip along the way.
Vacation Credit: Benefits
Taking credit for your vacation has many advantages. The biggest is probably that you can start the journey quite relaxed and not have to save months on it. Thus, the quality of life before the holiday is consistently high and even during the trip you do not have to turn every penny twice, so that the money is enough.
Another advantage is the terms of the banks. These are tailored precisely to the needs of consumers and especially for loans for the holiday, the terms and other conditions are very flexible. After a long vacation with many new impressions you return relaxed and balanced back to work and can go to work full of zest for action. However, anyone who works through the whole year and does not begrudge himself something is frustrated at some point and performs worse. A holiday loan is therefore an investment that pays off.
Holiday Credit: Disadvantages
If you pay with a credit holiday or travel, that also has a few disadvantages that you should weigh in advance. A typical problem with loans is that you quickly lose track of things and can no longer handle the costs someday. Especially when the dream trip is just a contract, there is a risk that the conditions are ignored and you spend the security of the loan even on vacation itself more than is actually available.
Another disadvantage is that the installments only have to be paid after the holiday. So you pay for the feeling of something that is long gone, which can be very frustrating in the long run. Just when the next annual leave is due and rates of the last trip are still open, a debt trap can quickly arise.
So what do you do?
If you have the money, you should not take additional credit. If the holiday is urgently needed or the offer does not come back so quickly, you should also grab the opportunity at times. Here you have to be honest with yourself: Can you handle the repayment rates? A financial burden for more than 12 months makes little sense. The recovery effect has long been lost.
If the height of the holiday credit goes beyond its own limits, it’s time to go! Even if some trips sound so tempting. If you have financial problems, you should look for cheap alternatives for recreation. So many had to spend his summer vacation at the local lake and was not bad at the end.
But if you decide for the holidays, it is absolutely advisable to have an independent credit comparison, such as via our loan calculator. Travel agencies usually work with contractors. The offers may be well matched, but whether you get the best conditions for your holiday loan, it remains set. With a glance at our loan calculator you have the comparison and thus guaranteed the cheapest loan.