➡️ When do travel loans make sense? ⬅️

Corporative Manager

Today, with the pandemic and the labor crisis that we are experiencing, we ask ourselves a thousand times: is it worth traveling? Is it really a good decision to spend the money I have on travel? will I need this money in the future?

I share my experience and my vision on this subject because I consider that the happiness of traveling is not compared to a good house, a successful bank account or a late-model car.

Nor do I think that traveling is impossible in these times of covid-19, like most of my family and friends; And if you have been planning a trip for a long time and you may have saved money for part or all of it, my advice is not to invest it in your trip and ask for a Travel Loan or Travel Loan.

It is always good to have money for unexpected expenses or emergencies that may arise. By using a travel loan, we can keep savings intact and pay travel costs in fixed monthly payments over time.

If something goes wrong in the future, we will have money saved to help pay for it, and we will win in two ways: by keeping savings intact and by strengthening credit history by paying off the loan. The next time we choose to borrow, we have more options in better conditions.

What is a travel loan?

A travel loan is usually a personal loan, a fixed-term loan, and without collateral. "Unsecured" means that we are not putting the home or other valuable property as collateral for the loan, and we are not in danger of losing that home or other property if for any reason we are left behind.

Lack of collateral can mean slightly higher interest rates, although exactly how high will depend on current market conditions and our personal credit score. “Fixed rate” means that whatever interest rate is agreed upon when the loan ends is the rate it will be for the life of the loan, regardless of what happens to interest rates nationwide. "Term" means the number of payments required to repay the loan, as well as the due date and the exact amount of each, is established at the beginning of the loan and will not change until the loan is paid in full, at least not without some type of refinancing approved by both us and the lender.

Some travel finance loans can be set up as "lines of credit," in which interest rates and a credit limit are set in advance, but the money is not distributed until we request it. The advantage of a line of credit is that you only take out what you need, when you need it, up to the maximum amount. Under this system, we only pay interest on the money we actually use; future needs can be managed, well… in the future.

Many lines of credit also allow us to "re-borrow" money that has been repaid. If we withdraw most of your maximum amount, for example, then over time we pay back about half, we would now have that percentage of the maximum amount available to borrow and use again. That means paying interest on the refund again, of course, making a line of credit similar in many ways to a credit card.

Any of the cases that we use to finance the trip: Line of Credit or Personal Loan, allow us to maintain savings, face an emergency situation at any time and demonstrate that travel loans have the meaning of happiness.

➡️ The best way to Finance Your Travel around the World⬅️

Office manager

When you evaluate how to finance your trip around the world, you can think of several options. There is no single option that is best suited to long-term travel financing. It really depends on the intentions and goals you have on your trip.

Traveling for 3 months or more, for many it seemed a total madness, especially because of the jobs and responsibilities we have but also because of the money that this adventure would cost us.

But if you clarify your intentions and objectives, you can decide what is the best way to finance your trip. I propose to know the best option that you can use to travel around the world.

Travel around the world without worrying about money

The idea is to build a portfolio of assets that generates enough income to cover our travel expenses on a regular basis.

For example, if we own an apartment or a house, we can rent it when we travel the world, and use part of the income to cover travel expenses.

If we work during the trip, it is another way to earn enough money to cover the expenses of the trip and generate the assets we need. If you want to travel the world without having to think about when to return, this could be for you. The term Digital Nomad during the pandemic covid-19 has almost become synonymous with long-term travel. In a nutshell, financing your trip by working while traveling means that you get to travel to the destinations you want while spending some of your time working to sponsor your trip.

The combination of these factors: renting properties and working as a Digital Nomad are the best way to finance your travel around the world.

➡️ Manage money during the trip⬅️

If we apply the tips from the previous article well: it is better to travel with financing , we have a financial budget for loose travel that allows us to designate a part to those unforeseen events that may arise.

I recommend adding medical expenses insurance to your trip even if you have part of it destined for emergencies. This medical insurance can be the same that you use in your country privately, which covers your expenses for 90 days on an international trip.

Your vacation will have the security you need in the face of the covid situation we live in and the return home will be pleasant without the stress of having spent all the money you had.

Leave this emergency money on your debit card and carry only a part of the budget in cash , the temptations to spend and the risk of losing everything due to a robbery will be less.

If you already bought the tickets for the tourist sites and the hotel in advance, you will not have to spend this cash and you save time from the walk in long lines as they are the most visited places.

Finally, and very useful for traveling, it is to record expenses during the trip . If you think about it, keeping a note on your phone with all the expenses will allow you to adjust the daily money and if you travel in a group or as a couple you will be able to control in the end how much each one owes to the other.

For this, all members of the group, for example, will download the app Splitwise and each person will add (in the group of the app) the payments they have made and if any of the members have paid them a part. Everything will be registered and you will be able to manage the money during the trip .

➡️ Is it better to travel with financing? ⬅️

Planning a trip in 2021 is becoming a difficult task to complete mainly due to the budget we have.

When we analyze the market offers in terms of transport, accommodation, food and tourist activities, we are invaded by insecurity and doubts about the trip.

That said, we could say that traveling without a financial budget can generate many complications such as: lack of money, inaccurate prices and others. Therefore, we prepare a detailed and accurate financial budget for the trip, taking into account the two most popular financing methods for it: personal loans and credit cards .

A personal loan offers a fixed interest rate, a fixed payment schedule and a fixed monthly payment, while a credit card allows you to charge the trip on the go and repay only the amount you borrow.

We may still doubt whether this is the most sensible decision in the world and which of the two financial instruments is the most appropriate for traveling. That is why I give you the following reasons:

You don't have to return it immediately

If you have a job with a low salary, saving money is more complicated and traveling is almost mission impossible. But for example, using a personal loan you can negotiate the repayment time (requesting deficiencies) and the installments to pay (fixed amount according to income), prioritizing your daily expenses while saving comfortably for the loan.

You have financial flexibility

You can request a loan for an amount greater than that adjusted in the financial budget. This will allow us to cover unforeseen travel expenses and when we have extra money to have the financial capacity to pay for emergency costs. Such travel expenses may be an additional fee on your luggage, hotel services not included in your pension, or tourist activities that we need during the trip.

Financial advantages of the loan over credit cards

Although credit cards are more used in travel than personal loans, they are dangerous instruments since they facilitate spending, they have higher interest rates than loans and some cards come with additional annual fees for maintenance and renewal.

If you are an impulsive buyer, having a credit card can be an eternal debt in which you will suffer financial losses despite enjoying the trip. While for loans we must pay lower fixed interest rates and that is why it is feasible to travel.

The lack of financial resources to cover our trip should not prevent us from achieving the planned getaway. The benefits of traveling: reduce stress and improve physical and mental health , definitely outweigh the disadvantages of taking a loan, making it worth the risk of debt and better to travel with financing .

➡️ Traveling in times of covid-19 (II) ⬅️

The second thing I want to tell you about my experiences traveling in this year 2020 is the need we have to do it. For some, before the pandemic, traveling could be considered a luxury or whim that we should have once or twice a year, nothing is further from reality.

Amid the chaos, uncertainty and fear of this year we can recognize that traveling is another important part of our life. It is the only way to reunite families abroad, provide growth to companies that want to expand and above all improve our priority for this year: stable and lasting health.

Traveling allows you to get out of your comfort zone, get to know other cultures, broaden your views of the world and explore your personal and professional opportunities. All the changes you experience in a trip (city, language and culture) reduces stress and improves physical and mental health that we have lost to covid-19.

The hope that everything will improve lies in having plans, dreams and experiences that give us happiness and joy again. We experience all these emotions while traveling and precisely this has been the first element that all countries have included in their long list of restrictions against covid-19.

I believe that the responsibility to feel free and happy again belongs to all of us, who by following health protocols have the security we need traveling in times of covid-19 . Stability is in you, in your goals, objectives and the will you have to achieve them. Don't expect anyone to save you and Travel to be Happy .

➡️ Traveling in times of covid-19⬅️

In 2020: year of fear, uncertainty and the renewal of personal and professional purposes, the pleasure of traveling is magnified for a thousand reasons that I want to share with you.

The first thing to tell you about the huge difference in responsibilities and measures between countries in the face of the unfortunate Covid-19.

Arriving at the Barajas airport - Madrid, Spain is a feat of gladiators due to the incoherent work of the army of police and doctors who are monitoring passengers.

Their presence is a mere bureaucratic procedure or what we all call, a false facade of the government to convince us that they do their job well.

It is the airline in question who really ensures the operation of the protocols established to maintain the safety of the traveler. They ask you for 3 important documents that you need to present when boarding: Health Control Form (€ 25), Negative PCR Test (€ 99) and Boarding Pass; they monitor the health control and distancing inside the plane; and they maintain a personalized treatment for travelers with questionable health aspects.

However, in countries like Ireland or Mexico (my two trips this year), the greatest responsibility for sanitary measures is assumed by airport controls. In addition to reviewing the documentation required to travel, they take your temperature at least 2 times at the airport and sanitize your luggage and most commonly used personal items such as your handbag and mobile phone.

During the first 5 days of your stay in the country, they continue to monitor your temperature in the hotel and make several phone calls to advise the traveler on the health authorities to which they can go in case of presenting any symptoms.

Safety traveling in times of covid-19 is guaranteed by all the measures in the first place that the traveler takes before and after their flight; secondly for the professional work of airlines such as Aeroméxico and Aer Lingus , and lastly for all tourism companies such as hotels that are responsible for complying with the necessary sanitary protocols in all its facilities.