Taking a vacation isn’t just about treating yourself and the people you love. It’s about reconnecting with life and having some downtime.
If you’re burned out from work, haven’t been away for a while, or just need a change of scenery, a vacation may be the solution. But they can be expensive—especially extended trips. That’s why many people use a vacation loan (a type of personal loan) to fund their trip now and pay later.
Here are five reasons you may want to consider a vacation loan as opposed to using a credit card, dipping into your savings, or borrowing from a friend or family member.
5. Fixed interest rates
Although credit cards often allow you to earn points and rewards, most cards have variable interest rates that can increase and cause you to pay more. Meanwhile, personal loans used for the purpose of taking a vacation typically come with fixed rates, resulting in predictable monthly payments.
The benefit of a fixed rate is knowing if the monthly payment will fit your budget. That means no guesswork regarding long-term affordability as you’re paying down your loan.
4. More funds available while traveling
Suppose you decide to use your credit card to pay for your trip, and your monthly balance is close to being met. In that case, you won’t have much or any wiggle room to cover additional expenses—like potential medical bills, excursions, or room/flight upgrades.
If instead, you use a loan to pay for your trip, you can have more funds available while you’re traveling to cover any want-to’s or have-to’s that come up along the way.
3. Emergency & bereavement travel
Although not a vacation but worth mentioning, if you need to attend to an important family matter or suddenly lose a loved one, last-minute travel can be particularly expensive. Given limited availability right before a flight date, there’s no guarantee you’ll be able to find tickets, accommodations, and more at the prices you’re hoping for.
If you’ve already maxed out your credit cards, a personal loan for traveling purposes may be a viable solution, especially for unexpected extended trips.
2. Flexibility with finances & consolidating debt
If you have multiple types of debt but you’re on track with paying your bills and would like to take a vacation, a personal loan could help you in two ways.
First, you can use the funds you need to pay for your vacation quickly and easily.
Second, you could use the same personal loan to pay off your other debt. You will effectively exchange your previous multiple debts and several monthly payments for one loan with a fixed rate and a single affordable monthly payment.
1. You can travel now!
If you’re not excited about the prospect of waiting months (or years) to save up for the trip you’ve been daydreaming about, the good news is a personal loan can give you the funds you want—right when you want them.
Looking to travel now or in the near future? At BHG Money, our personal loans can help you achieve your travel goals—with affordably low monthly payments. Call our team to speak to a loan specialist or use our Payment Estimator below to see how affordable your monthly payment could be as few as 30 seconds.
The funds you need to take a well-deserved break could be just a call or click away.