If saving for your next holiday is just taking too long, or you’re sick of seeing everyone else’s holiday snaps instead of your own, it’s time to do something about it.
And the good news is there is more than one way to pay for your holiday, and some of the benefits may surprise you.
To help you get one step closer to the airport, here’s our special tips to travel and save:
Save, the old fashioned way
Instead of researching your holiday once you’ve saved what you think you’ll need, consider costing it upfront so you know what your goal savings amount should be. Inspire yourself to stay on track by keeping a picture of your destination where you’re likely to see it regularly. Set up an automatic regular savings plan to ensure your savings are set aside before you’re able to spend it.
Borrowing can give you the flexibility to jump on bargains
Timing isn’t always perfect. Sometimes booking well in advance can ensure you get the early bird price or best accommodation, but on the flipside, you can also save by taking advantage of last minute deals. Whether you love planning ahead, are impulsive or simply can’t wait to save your spare cash, getting a personal loan to finance your holiday could give you the flexibility you desire and see you counting down to your departure date sooner rather than later.
- It’ll help you spread the cost of your holiday over time, making the it more manageable
- Repayments can start well in advance of your holiday, so you can book in the best prices early. Plus, by the time you leave, you’ll owe less too
- You can make lump sum payments along the way if you get a tax return, bonus, earn overtime or are gifted some birthday money.
- Unlike a credit card, a personal loan gives you the flexibility to withdraw cash without being hit with a cash advance fee.
While not all personal loans are the same, Easy Street offers a competitive, flexible personal loan with a comparison rate of 10.27%p.a.* There’s no security required, $0 monthly fees, $0 redraw fees, and you can make extra repayments or repay early without penalty.
Where a credit card can come in handy
Depending on where you travel to, travelling overseas with a few different ways to access money can come in handy, and this can include a credit card. Where a credit card comes in handy is where a hotel may require you to leave a credit card authorisation for your stay or for those unexpected or emergency expenses that you may not have budgeted for. Make sure that you are aware of any international transaction charges or currency conversion fees as well since they can add up. While rewards cards are a popular way to earn a “free” flight, consider the amount of fees you pay each year to get it relative to the value you get back. Sometimes the value just doesn’t stack up, but this depends on how you use the card.
Interest free holiday finance
This type of finance will let you borrow the cost of your holiday, interest free, typically for a shorter time frame than a personal loan (e.g. 12 months). Sounds great right? It can be, if you think you can pay off your holiday off within the interest free period. If you can’t, you’ll be stung with a high interest rate on the amount outstanding once the interest free period is over – this is often above 20%! Always remember to read the terms and conditions so you understand fully what you’re up for, as annual fees and other charges may also be applicable. If you question your discipline in paying off the debt within the interest free period, a personal loan might be a more suitable solution.
Remember, don’t forget to let your financial institution know when and where you are travelling to so they can keep a look out for any suspicious activity on your accounts. And, ensure you take out travel insurance as soon as you book your holiday. If something happens prior to you leaving, you’ll have peace of mind that you’ll be covered. Easy Street offers travel insurance backed by CGU insurance, which includes cancellation of journey.
Credit eligibility criteria, terms & conditions, fees & charges apply. Terms and conditions, fees and charges apply – details available on application. *Rates are current as at 20/06/16 and are subject to change without notice. *Comparison rate is calculated on an unsecured loan amount of $30,000 over 5 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
This information is general advice only and does not take into account your objectives, financial situation or needs (your “personal circumstances”). Please consider if this information is right for you before making a decision to acquire any product. Easy Street Financial Services is a division of Community First Credit Union Limited ABN 80 087 649 938 | AFSL and Australian credit licence 231204.