The importance of travel is hard to overestimate. It helps to get new emotions, switch from usual activities, restore strength. Vacation is necessary to get rid of stress and prevent professional burnout.
One of the travel options is a vacation in installments or on credit. We tell you when it is worth resorting to borrowed funds, and when it is better to save up.
Pros and cons of a holiday on credit
Using credit for travel has several advantages:
Travel right now . This is the most compelling argument: you don't afghanistan mobile database need to save up for a vacation for a long time. Sometimes you need an urgent reboot, a change of scenery, new impressions. And it doesn't matter that you'll have to pay off the creditor later, the main thing is to relax.
Fast approval of a credit application . Usually, small loans are taken for tours: such applications are often approved, and a minimum of documents are required for registration.
Overtaking inflation . Tours and air tickets are quickly becoming more expensive. While you are saving, prices may rise, and in the end you will have to spend even more than on loan payments.
Plus for credit history . The more credit products you take and pay on schedule, the better for your credit history. In the future, banks will be more willing to issue you loans on favorable terms.
The main disadvantage of borrowing is that you will have to pay back more than you borrowed for your vacation. This can be avoided by finding an installment plan from a tour operator or paying for your trip with a credit card and paying off the debt before the end of the grace period.
When is it worth taking out a loan?
The golden rule of financial literacy is: you should borrow money for something that will bring benefits in the future. It is definitely worth taking out a loan for education, a car, and a laptop that you use for work.
Things are not so clear-cut with trips. On the one hand, a vacation is necessary, on the other hand, it is not necessary to spend large sums on it, and especially borrowed funds. Here are some situations in which it is worth seriously considering a loan:
You are offered a profitable last minute tour. Your own money is not enough, but you do not want to miss the opportunity to visit an interesting place at a reduced price.
You've almost saved up for your dream vacation. You've been saving all year, but by the time of your vacation you've discovered that you're a little short of money. To avoid changing your plans and waiting another year, you can apply for a loan or find an installment plan.
You can't live without traveling. It's necessary for you to feel full of life and to be able to stay in working condition. If you can't save up, you can borrow a small amount for the trip.
You are too tired and feel emotionally burnt out. A change of scenery is one of the best ways to restore your strength. But in such a situation there is no time to save and plan a vacation in advance, so an installment plan is a good option.