Financing a vacation. How to finance a vacation when you really have no money to spare. Putting money aside every paycheck is wishful thinking for most people, there is always something worth spending our hard-earned money on TODAY. There are however ways you can spend on a trip without having to have any money readily available. I know you want to put the trip on your credit card and pay it off later, but check out your interest rates, if you don’t pay off your credit card by the date listed on your statement, then you’re screwed. With interest rates, as high as 29% in most cases, it seems ridiculous to pay an extra ¼ of what you paid for your trip, just so you can get a week away from work!
Financing a vacation. 3 tips to help get you the financing you need to get on your way:
1.Check with your bank. If you have your money in a bank, likely they offer small denomination unsecure lines of credit. If you need $5000 for a vacation, the bank would be a great place to start. Usually a rate on something like this would be under 10%, maybe even closer to 5%. If you get a line of credit, know your budget and you can set up regular payments the same day as your paycheques to pay it back. This way you won’t even need to think about paying back the money, you can just enjoy yourself on your vacation.
2. Use a vacation layaway program. If you have a decent credit history, you can use services like Sears vacation layaway program, where you do payments of $100 or more until the vacation you chose is paid off. There are other online layaway programs where you can apply for credit, once you know how much you have to work with, you can book a trip through their site and set up payments. The interest rates are high, but it is a good way to get yourself on vacation now, and pay later.
3. Prepay for a vacation. If you want to set up regular payments before you travel you can use vacation planners like the one for Disney vacations. You will go to their site, set up your vacation account and choose a trip, a date and then set up regular payments, this way is great if you can commit to regular payments before you travel. The money stays in the account until you book your trip.
If you have the nerve, why not ask mom and dad for some of their hard-earned money to go on a trip. I suppose that can be a last resort.
Have you used a financing option for a vacation? Add a link to the credit source you used for your vacation, and review it for us too!