Should You Take Out a Personal Loan to Travel?
Welcome again, reader. We are excited to once more have you here. This time, we’re going to cover the theme of getting a personal loan to travel: how a personal loan to travel works, when you might need a personal loan to travel, some aspects to consider if you do end up taking out a personal loan to travel, and much more. So, then, if you’ve ever wondered when a personal loan to travel might be needed, all in all, then this would be the article for you. We’ll also talk about vacation loans online, as well as some of the unmentioned ‘ups and downs’ that can come when you do get a personal travel loan, so please read on…
What is a Travel Loan?
A personal loan to travel, aka a travel loan, is basically what its name implies. It is exactly what you think. It gives you some temporary funds, which you pay later, so you can go out and travel.
You can get a personal loan to travel whenever you really wish to, or need to, get out of where you currently are, for X, Y, or Z reasons. And the reasons can be so many. You might need a personal loan to travel simply because a parent or other family member is very sick, and it might be your last chance to see them, ever. You might need a personal loan to travel because you haven’t taken a vacation in, like, forever, and just need to get out of dodge for a while.
Heck you might need a personal loan to travel because you got accepted for an interview to the job, or school, that you’ve been dreaming about for the longest time. Or, you might need a personal loan to travel because your friend is there, and they need some support, and you don’t want to leave them hanging. In fact, all of these situations could be going on at the same time but unlikely. Yet all joking aside, as you can see, the reasons could be various.
They Say, “Spend Your Money on Experience, Not Things”.
Take the following analysis into mind, concluded by FastCompany:
“[…] rather than buying the latest iPhone or a new BMW, Gilovich suggests you’ll get morehappiness spending money on experiences like going to art exhibits, doing outdoor activities, learning a new skill, or traveling.”
But wait. There is more. The source further continues in stating as follows:
“Ironically, the fact that a material thing is ever present works against it, making it easier to adapt to. It fades into the background and becomes part of the new normal. But while the happiness from material purchases diminishes over time, experiences become an ingrained part of our identity.”
Are Experiences Worth Delaying Income and Going into Debt?
Who knows? They just might be, especially after what we’ve just considered. After all, experiences tend to stay with us.(but not in a negative way, like certain types of bad debt) We don’t have to re-buy them to re-live them. We can close our eyes and ‘go there’ any time we want, replaying old “experiences” like tapes, if we really wanted to. Cool, right?
Travel Experiences and Time You May Not Regret
Many have still asked the question, time and time again. Some have even blogged about travel debt, weighing out the pros and cons. Make a list of your own, to see if it’s worth it.
On a rather interesting note, though most people have reportedly agreed that taking the plunge and going for that vacation is a costly risk, which only further indulges one’s lack of self – control and desire for ongoing travel, at any expense, others have seen the matter from the other end of the spectrum entirely. And this is worth noting. What I mean is this: Others have seen the memories and experiences that can be gleaned as invaluable as anything else, noting that, once one has gone to that great destination, the desperate “need to go” is removed, and one learns from it. Having gone, one can also now take himself or herself “back there”, mentally, whenever it’s needed. That’s certainly a different way to look at it…
Is a Personal Loan or Credit Card Better for Travel?
This can boil down to many things. We’re talking about APR rates for each. We’re talking about rewards points you can earn. Heck, we’re even talking about countries where your card or loan is permitted to use. In other words, where you can spend. There is so much to consider. Start with the previous link above, just to get an idea.
Downside of Using a Personal Loan for Travel
Let’s look at a few of the three major cons in play here:
- You’re adding more debt.
- You’re committing to paying the company interest.
- You risk loan default or untimely payments.
When Travel Finance Loans Make Sense
There are a few times when you could finance travel, and actually should, make that great escape and leave all else behind — well, at least until you get back and are now ready to face reality again. Let’s have a look at a few of these. Some you may not have even thought of.
1. When You Have an Emergency
This no – brainer is first. When you’ve got to go, you’ve got to go. And let’s leave it at that.
2. When You Have to Close a Deal for Your Small Business
Is business calling? Well, there’s an opportunity to make some money, right? You might even make more than you end up spending on going there, making the trip well worth it in the end. Perhaps your clients could even consider covering a portion of your trip’s costs, if you’re incurring expenses to go out to meet them at their own location. Ask.
3. When You know You’ll Have Consistent Income When You Get Back from Your Trip
This one is a good reason to go, all in all, even if you have to pay back some money on your return. Also, if you’ve got a stable job that is allowing you to take some time off — whether through a paid or unpaid vacation — which you’ve probably earned by now, then use up those days and take that trip. You’ll come back refreshed and go back to making some money as before. Where’s the harm or foul in that plan?
4. When There Show to Be More Opportunities Than Downsides
Perhaps some or even all of these reasons apply to you. That is definitely all the more reason to go. Once again, are there more ‘green’ lights than there are ‘red’ lights, indicating you should do it? Will you benefit in more ways than if you had not gone? That is the real question.
A Better Way to Finance Travel – Start Saving!
“Should I?” “Should I not?” “Maybe?” “Maybe not?” If the issue of whether or not to get that travel loan still has you in a grip of uncertainty, what you can do is just start saving instead.
That way, once you have enough money, you can win both battles easily. You get the trip you want, and worked hard to save up for (making it even more enjoyable, as a result), all while using the travel money you saved just for it. So you didn’t really need to take out that loan, after all, did you? Your mind was playing tricks on you.
And the best part about the whole shindig is this: You don’t really need that much. You could get by on a decent $1,000-$2,000, if you’re going solo, and still have the time of your life. Look for discounted flights on certain days, travel packages that have been set on clearance, and so much more. You can even start using any saved credit card travel points or other membership reward points, which you might have forgotten that you’ve accrued over the last few years. All this will help.
The Cost of Travel & Average Vacation Costs
It’s no lie. People have already begun looking at travel – saving trends for 2019. Some have been dismayed, considering the massive costs of average vacation cost for Americans. The tourism and travel industry will never get cheap, of course. The ‘vacation’ industry is still a business, and we often forget that. Be that as it may, do the proper research ahead of time, considering all potential costs, and ways to cut money on each, and you could find yourself saving quite a bit.
Let’s look a bit more closely on what some of these costs range at, based on averages of a family of four, shall we? Let’s reference the source link above. It shows the following:
Vacation Cost Averages Based on a Family of Four
Dining Cost: $130 per day / $1820 for two weeks
Lodging Cost: $180 per day / $2520 for two weeks
Airline Tickets: $300 per person / $1200 total
Activities: $350 per person / $1400 total
Yet with all these costs, it would only naturally follow that, if you bundle, you save. Remember those crazy auto insurance commercials you’ve seen on TV lately? Apply the same concept here. Get a vacation package, and pay for everything in advance, if you can, usually through some form of upfront deposit. Those who pay the full amount, or a great portion of the full amount, in advance, tend to save on the overall costs ; it’s a proven fact, and the travel seller will not deny it — that’s one thing, at least, he or she won’t deny.
VIDEO: Travel Statistics and Spending
How to Get a Travel Loan
If you really can’t wait, for whatever crucial reason, then you can just find a travel loan lender and get started. All you need to do is have on hand as much personal and financial info. as you can give. It’ll usually be required to have your social security number handy, so that your identification can be verified. This is to ensure that you are who you say you are and not, for instance, a terrorist, who plans on leaving the country to continue his terrorism acts. It is also to ensure that you’re not borrowing funds in someone else’s name, which is just as illegal as it sounds — but believe me, some have tried it, to no success.
Once you provide all your details and fill out an online form, or one in person at a location, depending on where you apply, your info. will be stored. You’ll be contacted soon. A representative may need to process everything just as if you were applying for a credit card, letting you know if ‘yay’ or ‘nay’ on the final verdict. Cross your fingers.
RV Loans So You Can Hit the Road
Have you ever considered RV loans instead? Taking a road trip can offer a lot less hassle, as well as cost, especially if you have the time and leisure to go at your own pace. pack a road that’ll take you through some of the most epic sceneries, if possible. Make it count. Make the trip itself a part of the actual vacation, so that you start relaxing and enjoying before you even get there.
Lots of free RV loan calculators are out there. These can estimate your monthly payment on such a loan, based on the agreed APR rates, your total term in months, as well as the loan amount you’ve gotten. For most new RV’s, rates tend to stand at about 6% APR, and for older or used ones, you’re looking at the same, perhaps 1-2% less based on your credit, if it’s through the right provider. And as to who that might be, you must decide.
In the end, it’s up to you. Take everything discussed here at face value. But ultimately, you’re the grown-up. Decide wisely, knowing that actions have consequences.
Efrain S is a contributor and writing professionally creating palatable, actionable content in the realm of finance. Efrain obtained his BA in Communication with a minor in Mass Media studies. He also writes academic content in APA, MLA, CHICAGO, HARVARD & TURABIAN styles. Plus, he’s 100% fluent in English and Spanish.
Ethan founded OfferEDGE in Dec 2013 with the mission to unify the financial quadrants through a system that allows businesses to be seen when consumers use a Single Sign On across Lending, Credit, Money and Real Estate. Taub invents the offers and IP, while overseeing all aspects of the company. He also has orchestrated the company’s earned media across the brands Loanry®, Cashry®, Debtry®, Budgetry®, Billry®, Taxry® and more. This includes over 500 publications that have been featured across the web.