A holiday can be a really great experience. It can be a chance to get away from your worries and to take a rest from work and generally relax. This means that it can be a really important thing to do but it can be really expensive. It may be that you consider taking a £300 loan or even something higher in order to pay for it. However, is it a sensible idea to take out a £300 loan to pay for a holiday?
Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.
Before you borrow the money, it is worth asking yourself a series of questions. By doing this you will be able to decide whether you think that taking the loan is a good idea or not.
It is also worth thinking beyond the holiday and how having a loan will affect your future. You will have to think about repaying the loan just after you return and whether you will be able to manage this. The stress of thinking about the loan and how you will repay could be so much that it outweighs the benefits of the holiday with regards to the relaxation that it provided you with.
If you do overspend a bit on holiday, then you will have to work even harder to repay the loan when you get back. This could mean that you will have to put in more hours at work, cut down your spending or even take on a second job or some freelance work to be able to pay it back.
It could be worth thinking about the benefits of saving over borrowing. In the future it might be better to save up for a holiday rather than using a loan. However, if you take a loan and have to be frugal in order to repay it, you could use those skills of being frugal to free up money to save up in the future.
Whether it is wise to use a loan to pay for a holiday really depends on whether you have any alternatives, really need the holiday and can manage to repay it on time. It is possible to have a great holiday and come back and repay the loan by being frugal and working a bit more and still see it as a great thing. However, if the loan is stressful and finding the money to repay it is really hard work, then it may not be worthwhile.