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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.

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.

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.

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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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