Planning Your Holiday with Travel Loans

Every now and then, everyone needs to take a break and get away from the daily grind. Holidays are a great investment for our health and wellbeing, but they often don’t come cheap – which is why more and more families are borrowing money to embark on their dream trip. If you’re interested in getting your escapade with borrowed funds, here are a few things you should think about.

Travel Loans vs Credit Cards

Two of the most popular options for holiday funding are travel loans and credit cards. Credit cards provide great flexibility – with instantaneous access to cash, you can spend and pay as you go instead of getting tied to a specific amount. However, the flexibility may also encourage overspending. If you’re not careful, you may end up returning home with a large amount of credit card debt. This might also lean the other way – if you’re afraid of piling up debts, you may end up scrimping and scraping during the trip, making your much-needed break less enjoyable.

On the other hand, travel loans will allow you to access a specified amount in lump sum. Most travel loans have fixed interest rates, allowing you to plan your budget around the regular repayments. Moreover, unlike credit cards, there is no cash advance fee involved when you’re making withdrawals from the ATM. If you’re getting a secured loan, you will more likely be able to borrow more than your credit card limits.

Planning Your Holiday and Loans

Going on a holiday doesn’t have to affect your credit score. Rather than deciding on your destination right away, try looking at your budget first. Figure out the amount of loan you can afford by factoring in the repayments into your future spending. Once you determine the amount that you feel comfortable paying off, find travel options that fit the bill. When looking at the choices – for destinations, transport, accommodation and more – decide on what concessions you’re willing to make (e.g. cheap airlines) and what you wouldn’t compromise on (e.g. beachfront hotel).

Need help choosing the perfect travel loan? Talk to a member of our team on 1300 HOMELOAN (466 356)

If you'd like to know more email us -, or call 1300 466 356
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