Whether you need a personal loan to travel to a family member’s wedding or birthday that lives far away, or want to fund an incredible holiday experience of a lifetime such as a honeymoon or a trip around the world. Taking out a personal loan can be a quick and easy decision. Low rates personal loans are by far one of the easiest and most convenient ways to pay for it all. Here is a straightforward and easy guide to using loans to pay for your holidays, as well as some tips on finding the best deal.
Whenever possible, paying for a vacation using your savings is still the best way to go on vacation. However, a cheap personal loan is still an excellent way to fund a holiday where your finances just can’t quite cover it.
You can borrow almost any amount over a period of 12 – 60 months at an interest rate of up to 30% or as low as 9%, depending on the type of loan you take out. Also, the smaller the amount, the bigger the interest is as well.
The advantage of holiday loans is the fixed payments. That makes it easier to budget and the 1 – 5-year payback plan.
As you can choose any one of these dates (although the loan provider will suggest a loan payback period that best suits your pocket), you can also pay loans down much quicker by paying a little extra every month. When you need a personal loan, get one and remember to pay it off quickly is always better, this will also give you a good credit score.
Your credit score will be taken into account when the loan provider decides your interest rate. For personal loans, this can go quite high (unsecured loans) but for a secured loan, this won’t be as big a problem as you’ll use a house or a car as collateral.
In the case of a short-term loan like payday loans, the interest is quite high and the payback period is about 30 days or less. So these are great too, just not for a holiday loan.
You can also try using credit cards but, should you not be able to pay back the full amount before the interest-free period runs out, it could get quite expensive. As with loans, those with the best credit scores will have the best deals.
Many of the top credit cards available today offer 0% for an introductory period on balance transfers or purchases, which means you can borrow the money to pay for a dream break completely free of charge.
This idea is best for those who need to borrow a smaller amount with a much shorter timeframe.
Shopping around for the best holiday loan specials is very time-consuming. Most comparison websites only give comparisons for individual companies, so you never really know if you’ve got the best deal. With Likemoney, you’ll find every major and minor loan provider, rated by other South African users based on their experience. Or simply share Likemoney with your Facebook friends and family and let them like the products they’ve had good or bad experience with in the past. BThis will allow you to make an informed decision based on their likes or dislikes. Furthermore, you can like or comment or other products or services based on your experience to help other South Africans make informed decisions.