Getting A Loan To Go On Vacation

There are enough people financing vacations that there are dedicated companies providing the service, and we’re here to tell you about it.

By on June 20, 2018
(Photo by Dan Kitwood/Getty Images)

Yep, some people are getting loans to go on their vacations. There’s a whole lot of opinions on this one, and I’m sure you know where this will head when the financial experts find out.

You can argue that this is both a brilliant idea, as well as a horrible decision. People taking out loans for vacations is actually so common that there are companies dedicated to loaning. They’re sort of “travel agents” of credit. One woman, Denise Phillips, says that she has already travelled once on loan, and is planning two more trips by the beginning of next year – all from loans. One, a trip to Hawaii to spend time with one of her sons, next month she’s going to Alaska for a fishing trip, and then in January she’s hitting Bermuda.

Here’s how it works. Well, you know how it works – it’s a loan. Someone gives you money, and you give them more back at the end of a certain period of time. Some of these companies give you a “flat rate” number that you have to pay, interest included. Interest rates can vary from anywhere up to about 30%. Financial experts say this is a bad idea, obviously. They say there are a few ways around having to finance a vacation. One is to use a credit card with a 0% introductory rate. Advisors also say that if you have to finance a vacation, you probably shouldn’t be taking a vacation. Check out some more on this here.

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