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 .