Whether you’re in need of a quick getaway or are finally ready to take the trip of your dreams, there’s no better feeling than planning a holiday. But with budgets getting tighter and travel expenses rising, more Australians are finding it hard to only rely on their savings alone to fund for their upcoming holiday.
However, with the rise of flexible financial solutions, taking that much-needed vacation has become more accessible than ever, thanks to holiday finance. But what are the holiday finance options and are they the right solution for you? Read on to learn more!
What are holiday finance options?
A holiday or travel finance option is a type of personal loan specifically designed to finance your holiday expenses. Like any other loan, Australians can borrow a specific amount of money to cover various aspects of their trip, including flights, accommodations, transportation and any other related costs. Unlike credit cards, loans typically offer a fixed loan amount and a structured repayment plan.
Whether you’re planning a relaxing beach getaway, an adventurous trekking expedition or an immersive cultural exploration, a personal loan can help you cover the costs involved.
What does the average holiday finance options looks like
Holiday finance gives you the flexibility and convenience of being able to take a trip away without hassle. But before you can start packing, you’ll first need to find the right loan to suit your unique financial situation. To keep your search simple, we’ve outlined three standard holiday loan features and what to compare.
1. The interest rate
Holiday finance comes with either a fixed or variable interest rate. A fixed interest rate does not change throughout the life of your loan, regardless of any fluctuations in the market. The fixed rate is usually agreed upon at the beginning of the loan. With a fixed interest rate, your loan repayments are normally guaranteed to remain consistent, making it easier to budget and plan your finances accordingly.
On the other hand, a variable interest rate can change over time, typically in response to fluctuations in market interest rates. This means if market rates decrease, your loan’s variable interest rate may also decrease, resulting in potential savings on interest charges.
2. Fees
In addition to interest rates, travel finance may involve various fees, which can impact the overall cost of the loan. Some common fees you may come across include an application fee, which is charged to process the loan application and set up the loan. Some lenders may also charge ongoing fees for the maintenance and administration of the loan throughout its duration, usually charged on a monthly or annual basis.
Other fees to be aware of are late repayment fees, which are charged when a borrower defaults on their repayments, and early repayment fees for borrowers who choose to pay off their loan early.
3. Loan features
Many holiday finance options offer additional features that can enhance your borrowing experience. Some common features include the ability to make extra repayments, which allows you to pay off your loan faster and potentially reduce the overall interest paid.
Another useful feature is redraw, this feature enables you with the ability to withdraw any extra repayments you have made towards your loan, providing flexibility in case of unforeseen expenses during your trip.
Tips to maximise your holiday finance
Once you’ve selected the holiday finance which best suits you and you are ready to apply, don’t forget to incorporate these three tips to help maximise your loan:
● Organise your travel budget — Before applying for travel finance, carefully plan your holiday budget. Factor all aspects into your budget, like accommodation, transportation, meals and activities. Creating a realistic budget will help you determine the loan amount you need, ensuring you borrow a sufficient sum.
● Opt for a repayment schedule that suits you — While planning your loan repayments, consider the duration and frequency of your payments. Choosing a repayment plan that suits your lifestyle and how you manage money is recommended (this could be weekly, fortnightly or monthly).
● Utilise loan features — If your holiday finance allows extra repayments and redraw, take advantage of these features. By making additional payments whenever possible, you can reduce the interest paid and potentially shorten the loan term. Additionally, the ability to redraw extra funds can serve as a safety net during your trip.
Feel empowered with your finances with Finance One
Since 2010, Finance One has been helping everyday Australians access the appropriate funding they need to take on their big financial goals. Whether you’re looking to buy your first car or consolidate your debt, we may be able help.
If you find yourself wondering, “Can I get a loan for a holiday with Finance One?” Absolutely! We offer fast and flexible loans for borrowers from all financial backgrounds. No matter your history with credit or other loan products, we encourage and welcome all kinds of applications. We pride ourselves on being a responsible lender, committed to empowering our customers.
Our highly experienced and compassionate team can help you unlock the correct finance option for you and your circumstances. Learn more about our travel options by submitting an enquiry form or calling 1800 346 663 today.
Normal lending criteria apply. Fees and charges are payable. Terms and conditions apply.
Finance One means:
Fin One Pty Ltd – ABN: 80 139 719 903
Australian Credit Licence: 387528
*Loans between $50,000 – $75,000 must be asset backed.
**48 hour approvals subject to satisfactory documentation being provided to assess the application.
Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent advice regarding your legal, financial, taxation or other needs, to check how the information relates to your particular circumstances. We do not accept responsibility for any loss arising from the use of, or reliance on, the information. All loan applications are subject to normal lending criteria. Fees and charges payable. Terms and conditions apply.
