Travel Tips

Should you Take a Loan for Vacation?

Vacations are one of the most important stress busters that offers an extended help to add comfort and peace to one’s mind and soul. In today’s fast running life, it is important to escape some peaceful moments that can help you to rejuvenate and relax.

Earlier, vacations were considered as a luxury or optional choice but with the increase in the stress of lives, vacations are becoming necessity of life. It is recommended to plan frequent vacations that can help you to boost your energy and enthusiasm.

But the urge of travel has sometimes led many to borrow money to carry out the expenses that are required for the travel. Some might even consider opting for loan, to book their dream trip. However, it is important to make sure that none of the travel, vacation should add burden to your finances.

The big question here arises that is it really recommendable to book your trip, vacation with the loan? There are many aspects of it. We will throw light on important aspects that will help to understand whether one should take loan for vacation or not?

The Drawbacks of Opting for Loan to Go for Vacation

There is always an individuality of decisions that should be maintained while deciding the finances. Every person finance may differ and the different parameters such as annual income, other expenses, any EMIs etc plays an important role in deciding how to carry your finances in future. All these factors together contribute in making a wise decision whether one should opt for further finance loan with travel, or not. In case, you are having good credit score, less burden of EMIs and a consistent good annual salary, you can opt for taking some financial aid in the form of personal loan. But, you have to be confident enough about paying off these debts easily without any further stress.

Many of the finance advisors believe that taking up a loan for a vacation should avoid completely. This is so because, the amount you will spend to get some relaxed moments in your life might be one of the plausible reasons of your upcoming stress to pay the EMIs or the loan amount in future which you have taken for the pretext of vacations.

Hence, you will end up compiling more of stress to yourselves rather than gifting yourselves some relaxed moments. You will knowingly or unknowingly increase your debt load and it will surely affect your financial as well as mental health as a whole. If not controlled on time, it can also lead to give you physical stress too.

Most of the people opt for going for a personal loan which are mostly from the category of unsecured loans. These loans generally have higher rate of interest. This means, you will need to struggle more to control your budget to take out money for the loan repayment. Even if you are having a good credit score in the market, you need to pay extra rate of interest that will charge from you in respect to the loan payment rate of interest.

To conclude the above-mentioned aspect, we can say that having a relaxed and good time for few days in vacation. Then preparing yourself for long term stress and trouble is not at all advisable. One should always stay in limits while managing the expenses and finances.

The Exceptions

It is right that one should avoid taking personal loans for the pretext of vacations. But at the same time, if you are planning for a one- time trip and you are confident about paying it back through easy installments without stressing yourselves, then you can easily opt for taking personal loan for vacation. The analysis of personal loan will help you to gather all the necessary requirements which you have to cater before applying to it.


It should not be a burden for you and you should opt for the amount that you can pay easily. Taking all the important aspects in mind, one should take his own decision. As far as experts and market research states, you must avoid taking up loan and planning a vacation for yourself.

Not taking up a loan is one advise. But at the same time, one should encourage to plan the vacations according to his budget. Simply following these steps:

Prepare a Separate Fund for your Upcoming Travel:

You can easily make a separate savings for your upcoming travel. Depending upon your requirements, you can choose to start saving the money that can further use for upcoming travel. You can also book your tickets in advance. This will also help you to save the extra money you will pay at last time booking.

Start Collecting Reward Miles:

Yes, this is also one of the smartest ways to arrange funds for your vacation. Make sure you keep on earning the reward miles with the use of your credit card. However, it is advise to first ask your concerned bank authorities for the same. You can also ask them about the various processes that can be utilize to earn these reward points.

Plan your Travel within your Budget:

Do some homework and find your favorite destinations that could be easily covered with in your budget. First of all, make a budget and check how much you can afford without stressing yourselves. Once, you will be through with your budget planning, take a next approach to find the better options with in your budget. It will help you in saving a lot of money through pre-booking of hotels, flights, transportation and many other. Hence, planning in advance, is one of the best options.

Keeping all these points in mind, one should plan his vacations.  We wish you a happy and relaxed   vacations!




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