Borrowing for the Holiday Trip – Credit Loan

Several surveys in recent years have shown that about every fifth person has paid a vacation trip with borrowed money from private or fast loans on at least one occasion. The fact that many people choose to make the purchase themselves by credit card in order to, among other things, get reinforced travel insurance is not a factor in this context.

The most recent major study on the subject was conducted in April 2017. It was the research company PFM Research that supported it. The survey shows that 20% have at some time either partially paid or fully financed a holiday trip with loan / credit. Another interesting figure from the survey is that 16% believe that there is a great possibility that this year’s holiday will be paid with borrowed money. Although this figure is from 2017, a corresponding figure for 2018 should not differ significantly.

Unwilling to save for the holiday


That so many people choose to go abroad even though they really can’t afford it is interesting. The natural consequence is why this is so. The survey contains a clue. It is a question that almost half of the respondents respond that they have at some time experienced a pressure to travel. For example, it may be about friends traveling together on a charter. Probably there are also some families with children who feel that “everyone” travels abroad once a year and therefore feels pressured to follow the norm.

The survey also presents interesting answers to questions about saving for the holiday. Most interesting is that more than one in four respondents feel that it is less attractive to save for the cost. The story does not tell us what proportion of the respondents actually have the opportunity to save for the trip. However, it can be assumed that there are relatively many who have the finances for it and that saving is only perceived as difficult.

If you can’t afford it

If you can

If you cannot afford to pay your trip with saved money, you should not book. That’s the basic rule. Do you know that you will receive a larger income soon, for example from tax refund, and have to book and pay the trip as soon as possible, however, the thing will come in another day. However, you still have to be careful about the loan. An ill-considered loan can lead to a new loan and constitute the start of a vicious cycle.

If there is no money in the household cash register, it is the smartest to start saving and wait until next year. With a lot of savings there may even be the opportunity to travel on a longer or otherwise better trip than is possible this year.

Bring your credit card on vacation


Credit and holidays are thus not generally a brilliant combination. However, it is actually a good idea to bring your credit card. It is even recommended that you make most purchases and pay most restaurant notes by credit card. The reason is that it is safer to use credit cards than to use debit or bank cards.

How come? Well, in case of credit card purchases you have the opportunity to make claims and objections not only to the seller but also to the credit card company / creditor in case of problems.

You can also use the credit card as an extra buffer that you can use if the cash runs out or if your bank card is lost or stolen.