Ah, vacation — a relaxing holiday away from home. The only thing that’s not so relaxing is figuring out the logistics of financing a vacation.
The one thing that can snap you out of your blissful vacation state is coming home and realizing you’ve racked up hundreds of dollars — or more — worth of expenses on your credit card that will now take years to pay off.
Financing a vacation on your credit cards is like digging a hole. You need to have the money available to pay it off, otherwise the balance on your credit cards will only continue to grow as interest is added each month. Even if you make the minimum payment every month, if the balance is too high, it will take years to pay it down — plus you’ll be paying an exorbitant amount of interest.
No one wants to still be paying for a vacation they took in 2018 in the year 2025.
When it comes to financing a vacation, there are much better options.
Option 1: Get a Personal Loan
A small personal loan is a significantly better alternative to putting the charges on your credit cards. Most reputable lenders will allow you to pay back the loan in fixed monthly payments over the course of a 12 to 36-month schedule — and if you have the money sooner, you can pay it off sooner. Some lenders, such as Prudent Financial, even offer loans to people with bad credit, so a personal loan is well in reach for the majority of the population.
If you do opt for a personal loan, make sure you are choosing your lender wisely. Some lending operations, such as payday loan operators, have extremely short repayment schedules, high interest, and very strict penalties for failing to repay on time.
Option 2: Look at Vacation Deals
Some vendors offer book now, pay later vacations. While it may seem too good to be true, this can be a good option. Like a personal loan, you can often pay off the vacation in fixed installments that allow you to budget over the long term. But you need to consider the “deal” carefully. Make sure you look at the fine print — the interest rates, repayment schedule, additional fees, and cancellation policies — and be sure to get the deal in writing.
Option 3: Open a Secured Credit Card
If you have bad credit, some lenders offer small loans, which you can use to open a secured credit card. A secured credit card is backed by a savings account that is used as collateral on the credit available. A small loan could provide this collateral. This can be a good option if you want to take advantage of online deals, which are often more affordable than book now, pay later vacations, but you’ll need to pay upfront.
As a bonus, if you have bad credit a secured credit card can help with credit repair.
Taking the time to consider your options for financing a vacation will help make the holiday that much more enjoyable. Knowing it’s paid for and you won’t have to worry about money will let you focus on relaxing without the stress.
Prudent Financial offers personal loans for people with bad credit.
Contact us today to arrange your vacation financing: call 1-888-852-7647 or visit www.prudentfinancial.net.