Planning a trip is exciting, energising, anticipatory, inspiring, rewarding, and ….. costly.
But it’s something everyone should do.
So, if you’re itching to get yourself to the sights of the French Alps, the mesmerizing northern lights of Finland, or the upbeat pubs of Ireland - there are a number of financing options that could get you on a plane within the week.
In this guide, we will discuss four ways you can finance your dream holiday and what JADE Finance can do for you if you require a travel loan.
Getting ready for take off
If you’ve got a destination in mind - you’re already on your way to planning a sensational trip. But before you grab your neck pillow and eye mask, there is one extremely important step to undertake.
The budget.
As with any financial endeavour, you need to first determine how much money you have coming in, how much money you have going out, and where you could potentially cut costs in the lead up to your holiday.
If, after you have looked into these details, there is not a lot of money left in your budget - bad news, chances are you might not get approved for a travel loan and should look into postponing your trip until you are more financially stable.
HOWEVER, if you still have a good sum of money left over, great news - you’re one step closer to walking down the aisle… the plane aisle.
What are my financing options?
Once you’ve prepared a budget and determined how much money you’re going to need, these are four financing options you could utilise to fund your dream holiday -
Option 1 - Travel Loan
Your first option is of course a travel loan, also known as a holiday loan. With this type of loan, your airfares, accommodation, meals, activities, insurance, and spending money are all covered. Travel loan amounts, interest rate, and repayment periods are all assessed by the lender based on your individual needs and circumstances.
There are a number of benefits to a travel loan. One key benefit is most travel loans may have a fixed rate which means each monthly payment will be the same until the loan is repaid in full. Some other benefits include quick access to funds, flexible usage, and no collateral.
Downsides to a travel loan can include interest and fees, strict repayment schedule and terms, and the fact that it is additional debt you will be taking on. Additionally, your credit score could be an important factor in determining whether you are approved. If you have a less than ideal credit history, you may not be approved for a travel loan.
Option 2 - Credit Card
If you are low on savings, another form of loan you could use to finance your holiday is a credit card. However, it is more risky than a travel loan. This is because while travel loans are able to be paid off in monthly repayments over time, the balance of a credit card must be repaid in full when it is due. Failure to provide the due funds could result in high fees and penalties. Not to mention, credit cards also typically attract higher interest rates than personal loans.
If you are thinking about financing your trip in this way, another important consideration is that you will need to make sure your credit card is going to be accepted by your travel agent and/or other companies you intend to use throughout your trip. Additionally, if you’re traveling overseas, credit cards can also attract international fees. However, as an added convenience, some credit card providers will also offer travel insurance.
Option 4 - Work Abroad
A lot of people consider ‘remote working’ to mean working from home. But the truth is, if you can still complete your tasks every day from your hotel or on the move, while leaving time for experiences - it’s a fantastic way to finance a trip. And if your job doesn’t offer remote working, you could explore the option of working online for the duration of your holiday.
In addition to taking your current job with you, there are also a large number of work and travel opportunities available across the globe. A common work and travel opportunity is hostel or accommodation providers who allow travellers to board for free or cheap in exchange for work. These can include world-wide companies such as Workaway or Global Work and Travel.
Option 5 - Savings
This is probably the one you least want to hear, but to be completely frank - the best way to finance a holiday is to save up. By using your savings to finance a trip, you will avoid risk, and borrowing fees and interest. And if you know how to save, creating a holiday fund can be done quicker than expected.
To get started, the first step is to research holiday costs and set a saving goal. Once you know how much money you need for flights, accommodation, meals, travel insurance, and more, you should open a dedicated holiday savings account to help you track your progress. By transferring a portion of your income into this account regularly, your holiday fund will eventually build up to the cost of your holiday.
This form of financing can be the least favourite option for a budding traveler because you will have to wait to experience your holiday. However, the earlier you start, the quicker you will achieve your goal and see the sights of countries like France, Germany, the UK or New Zealand.
Departing Thoughts
There are a number of ways to fund your dream holiday. However, it’s important to remember that holidays can be expensive so it’s important to finance your trip in a way that will work for you and your circumstances.
Whether you choose savings, working abroad, credit card, or a travel loan - you can keep your expenses down by setting a holiday budget, comparing travel deals, traveling local or off-peak, booking early, making sure you’re insured, and seeking financial advice from a travel loan specialist.
JADE Finance has travel loans to help you take off sooner
If you’re a dreamer or a planner, become a traveler sooner with our affordable travel financing options. At Jade Finance, our expert brokers can provide travel funding for an unsecured personal loan, meaning no major assets or collateral are required!
With a variety of holiday loans from more than 80 lenders, we’ll find the best rates and workable repayments based on your personal circumstances. Not only that, but you’ll receive your own experienced consultant to deal with every time, ensuring you find the right credit product for you.
Find the best holiday loan available by calling us on 1300 000 008, or Request a Quote.
