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Using Personal Loans for Travel

Another way to get money to travel and build credit at the same time.

Travel is an opportunity to experience new places and cultures as well as relax and recharge from the hassles of everyday life. No matter how much you enjoy travel, coming up with the funds can be a challenge. Setting aside money from each paycheck until you have the funds needed to take your trip can be difficult. It is hard to maintain discipline with your finances when it will take months or years to reach your goal.

Paying for Your Trip

If you are looking for alternative ways to fund your vacation, there are several avenues to pursue. The most obvious choice is to charge these expenses to your credit card. While not the ideal choice, many people do this with the hope of paying off their debt quickly. Rather than pay the high-interest rate associated with many credit cards, consider borrowing the money you need. A personal loan will give you more options when planning your trip. You get the full amount of the loan up-front, allowing you to pay for your vacation as you go. Repayment terms are generally more favorable on personal loans than on credit cards. You could also consider getting a fast cash loan, which will get you some money to travel in the quickest way possible.

When borrowing, think hard about how much you need. You don’t want to overextend yourself, but at the same time, you want the funds necessary for a rewarding trip. It is also important that you leave a cushion in both your checking and savings account before heading out on your trip. You never know when an emergency may crop up, and nothing is worse than being stranded far from home without the funds to bail yourself out.

It’s probably not the best idea to borrow to take a holiday or vacation, but there are creative ways that you can make money while you’re traveling and if this is going to be the case for you then you could use that income to offset any costs associated with lending. You may want to think seriously and carefully about this because bank charges can be nasty when compounded over longer periods. Personal loans may offer better interest rates than credit cards but you may have to take out a larger loan than what you might have been considering. With that being said, you’ll also have a longer period to settle your loan than with a credit card. There are loan companies that offer access to lines of credit that don’t come from traditional banking sources or methods, so do a bit of research and see what works for you. If you’re in Australia then have a look at Plenti which offers a new approach to lending you might find beneficial. There are similar companies in the United States so if you’re considering borrowing to fund your travels then take some time to research different providers and compare their offers. A seemingly small amount of interest could amount to a big difference over time.

Repaying the Money You Borrowed

Once you return from your trip, it is time to repay the money you borrowed. If you put the expenses on your credit card, your goal should be to pay the cards off as quickly as possible. If you managed to put these charges on a card with a promotional zero interest term, make an effort to have the balance paid off by the end of the term. If you used a personal loan to finance your vacation, you will know exactly how much to pay each month and how long it will take to repay the debt. This allows you to include this payment in your budget, which makes it easier to keep control of your finances.

Minimizing the Amount You Need

One of the best financial moves you can make is minimizing the amount you need to borrow. Setting aside some money each pay period to beef up your savings, or even taking a part-time job to raise some funds, may make it easier to enjoy your trip. While there is no need to pay for everything up-front, having some money set aside for excursions or dinners out can have a positive impact on your financial situation when you return home.

By carefully planning where you go and what you do, you can have a fun, relaxing trip without breaking the bank. Borrowing money with a personal loan allows you to afford small luxuries that you may otherwise be tempted to skip. As long as you are responsible when spending and have a repayment plan, there is no reason you can’t use a personal loan to pay for your trip.

Filed under: Travel Guide

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  • DaNuck March 9, 2021, 6:40 pm

    It’s never a good idea to borrow money , unless it’s for an appreciating asset , such as a home or business. Borrowing money for other purposes is how people get themselves in financial trouble.
    Real “freedom” is being debt “free”……..

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