Borrowing money is becoming more popular and more accepted. For example, we borrow to buy another car, or to remodel our house. Yet borrowing money for a vacation is not yet talked about much. Could it still be some kind of taboo? Borrowing money for a vacation can be a smart move.
If you have not yet received your vacation allowance, but you see a nice last minute deal coming along, then it is advantageous to borrow money to book this vacation. When you have received your vacation money, you can use it to pay off the loan. Also, by temporarily borrowing money you can book in time and take advantage of the early bird discount. You are then assured of a nice spot during the high season, at your favorite campsite at this german website.
The vacation loan is a revolving credit. This means that you take out a loan with a certain limit, but that you decide when you withdraw an amount. This way you always have enough money when you go on vacation. A revolving loan has no fixed deadline by which the loan must be repaid. It offers the possibility to withdraw paid amounts again. But if you have money left over, you can also pay off extra without penalty. The interest rate of a revolving credit is usually lower than that of a personal loan.
Choosing a vacation loan offers more freedom than opting for a personal loan. Because you are free to choose the amount you withdraw and repay each month. Also, the term is not fixed in advance, which means that you do not have to repay the loan in full before a certain date.
The vacation loan, also known as a personal loan, offers more security. Because you know exactly where you stand before you take out the loan. The interest rate is fixed and cannot be higher or lower during the time you pay off the loan. The term is also fixed in advance. So you know exactly when you have paid off the loan in full. In this way, the amount you pay off each month can be calculated precisely; the interest rate and the monthly instalments are known in advance for these types of kredit.
Choosing a vacation loan offers more security than choosing a vacation loan. Because the term, the interest rate and the amount that you repay each month are known in advance. This allows you to calculate before you take out the loan whether you can spare this amount each month, or whether the loan is perhaps too high. In that case it is better to take out a smaller loan, so that you do not fall behind with your payments.