Have you been planning on that exotic summer vacation to Hawaii with no fruition to the idea? Financing a vacation, especially for a large family, is a bit tricky, and so many people put off traveling to their dream holidays. A vacation’s cost can add up significantly considering airfares, hotel bookings, and fun activities like snorkeling, buying souvenirs, and so on. There is also the fact that the more popular destinations cost more. But you can finance your dream holiday with a personal loan without breaking the bank.
Research Your Destination
Where do you want to go? If it is the Caribbean, where specifically? Luckily, you have the internet. Doing a simple search, for example, “Top 5 diving destinations in the Caribbean” will pull up many search results. Browse these options, taking note of what each destination offers and the price. Remember to look at the reviews, suggestions, and opinions of other vacationers. Sites such as TripAdvisor are very good in providing feedback on different destinations, hotels, and activities. You can then rank these destinations.
Compare the Costs
Look out for holiday packages that have what you need. It is rarely possible to do everything on your to-do list on a vacation unless you have the finances and time. If you are going to Paris, for example, it would be smarter to choose a package with 2-3 museum visits rather than trying to squeeze in a lot of museum visits in a 1-week vacation. Compromise on what you wish to see with respect to your budget. If a holiday package offers 75% of what you wish to see and do, it is adequate. There is always the next time.
Make a Bare-Bones Budget
Another option would be to plan with a DIY bare-bones budget. This is good when traveling singly or as a couple. You can drastically cut the budget by considering options such as:
- Planning for public transport instead of renting a car
- Sleeping in a hostel instead of a hotel
- Taking the train or driving instead of flying
Consider Your Financing Options
With your vacation budget set, it is easier to shop around for a personal loan. You should try to have the bigger part of the vacation budget financed by your savings. The remainder is what you can borrow. If you already have credit cards, tick off items that can be paid using the cards, as this is already available credit.
Many lending institutions will typically lend up to $10,000 for a vacation loan. Be sure to compare interest rates as well as repayment period, to pick a loan that favors your financial capability.