Should you borrow money for a Holiday?

Many people enjoy having a holiday and some people have a few a year and others less often. However often you choose to have them, you do have to pay for them and they can be very expensive. They are some cheaper options, but all holidays have some cost, even if you are staying with relatives there is likely to be days out to pay for as well as travel costs and food. Many people decide to use a loan to pay for their holiday.

Some may choose to get a loan with no credit check, but more commonly people will use a credit card or an overdraft to pay for their holiday. All of these options will cost money, with the credit card and overdraft usually being the most expensive option. It is worth calculating how much these will cost you to see how much extra the holiday will cost as a result of borrowing money to pay for it. This should help you to decide whether you think it is worth the extra cost that you are paying. With credit cards and overdrafts there are no fixed repayments and so the debt may last for a long time. Some people just pay off the minimum balance and keep being charged for their debt for a long time.

It can be a trade-off for some people to decide whether having their holiday is worth the debt. They have to consider the extra cost of the holiday based on the cost of the borrowing as well as any stress they may have because of the fact that they are in debt. It can be a hard decision to make as there may be pressure from children that they want to go on holiday, the need for a break and change of scenery and the need for some relaxation. However, there are alternatives to borrowing money.

Some people will save up to pay for their holiday. This means that they put enough money aside each month so that by the time they want a holiday they will have enough to pay for it. This can take time and may mean finding a cheaper holiday or waiting or longer between holidays but will mean that you avoid the debt. Other people choose holidays that are a lot cheaper. Some people book last minute and save a lot of money, others book in advance to save money. There is the possibility of doing a house swap with someone so that you can stay in a different place without paying anything. Some stay with friends or family to spend less. Some even have a staycation, where they have time at home and go on day trips or just explore their local area as if they were a tourist.

Whether you choose to get into debt to go on holiday is a very personal thing. However, it is worth thinking about the additional cost and the consequences of being in debt, such as the stress of the repayments and having to go without things to pay it back. You need to decide whether it is worth borrowing the money to have a holiday. Try not to just think about the positives of the holiday but also think about the debt and whether the stress of that will outweigh the relaxation that you will get from the holiday and whether you will look back on it and think that you got good value for money. It can be a very hard decision as often it is an emotional decision rather than a logical one, but it is worth spending some time thinking hard about what will be the best for you.

It may be best to start saving up, so that when you do want to go on holiday, you will have enough money to pay for it without having to borrow. If you think about what sort of holiday you want, you should be able to work out how much it will cost and therefore how much you will have to save to be able to go. You may need to wait quite a long time before you can afford to go but you will not have to worry about paying back any debts when you get back and you will not have to pay more than necessary for the holiday. This should help you to be able to enjoy it more.

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