Top 5 ways to finance a vacation
Vacations can be a costly transaction and unless you really well off you might have to borrow money to finance your vacation. But of course there are options here are top 5 ways to finance a vacation.
1. Through a savings account
Using a dedicated savings account, also known as a vacation fund and taking a closer look at your expenses can help you save funds towards your dream vacation. A savings account allows you to separate from your other accounts this lessens the chance of the vacation money accidentally getting spent.
2. Finance on Layaway
Make regular payments to a tour operator or financial services company prior to your trip. There are those that offer for instant cruise lines vacation packages. But you should make sure you understand when payments are due and whether there are late-payment fees. The major advantage to a layaway plan it forces you to save by paying in advance.
3. Through a loan
Your options for a holiday loan include a Personal loan through a bank or a credit union. The Annual Percentage Rate (APR) for these loans is usually competitive, and some offer flexibility when making repayments. Or through a Payday loan, which tend to attract higher APRs.
4. Credit cards
If used correctly by paying the balance off in full each month and only charging what you can afford to pay off there are many cases where a credit card comes in handy.
Using vacation credit cards makes sense if you plan to use features such as access to airport lounges, complimentary insurance cover and frequent flyer rewards. Don’t forget that you may have to pay foreign currency conversion fees as well as ongoing annual fees. Using your credit card for cash advances can see you paying a considerably high APR.
5. Vacation packages
Or in many cases you can receive an offer of savings off family packages. This may include taking advantage of package rates that offer a budget friendly destination. Family packages of a hotel stay, entry tickets on rides for the kids, early admission and the possibility of upgrades. Air and ground transportation may also be included in some packages.