What speaks for and against a holiday loan

If you do not have the small change you need for a holiday, you do not have to think about your holiday dreams automatically. Because tour operators or banks are long to get holiday loans that can be paid off easily via installments. These offer advantages as well as disadvantages. But that’s nothing new in financial affairs. Before you finance a vacation trip, you should still worry about some. The relationship between emotions and reason in the topic of holiday credit can be read in this article. Afterwards, you can decide according to your own criteria whether a holiday trip is worth a loan or not in your view.

That speaks for a holiday loan

That speaks for a holiday loan

If you are ready for a holiday or just need to get out of the rut of everyday life, a small change of scenery can bring about miracles. You fly to the south or another beautiful area and enjoy your days off to the fullest. Whether it is to go with the backpack through stony coastal landscapes or the cocktail for sunset on the beach is enough, you decide. Soon there will be a few days off when you need a change of location. You may already have ideas about your destination and are just now finding your perfect dream holiday on the Internet. Before all your pleasant ideas break with a look at your balance, you should think for a moment about the possibility of a holiday loan.

Take advantage of the low interest rates

For some years, interest rates have remained at historically low levels. You hardly get any income for savings accounts at your bank. The flip side of this medal are loans that also carry little interest costs. You can benefit from this because you currently have relatively little additional costs to plan for a loan. Sometimes you can find loan offers that do not pay you back much more than the amount actually borrowed. The loan terms depend in the last instance on the sum, the term and your own creditworthiness.

Before you submit the loan application, you should be aware of what amount of money you want to go out. Do you need a full financing or is there a small subsidy for the holiday fund? Depending on your ideas, there are three types of credit available to finance your trip. At the mini- loan you borrow the money with a fixed repayment target . As a rule, the loan must be repaid within 30 or 60 days. In this manageable time frame you transfer the money in one or two installments to the lender. However, if you become defaulting and need repayment for a delay or even a follow-up financing, that is unnecessary in the money. With microcredit you are less under pressure as far as repayment is concerned. You can co-determine the duration and the amount of the installment, but usually have to live with slightly higher interest rates. In addition, the loan amount is capped at such micro credits, so you only have a limited amount of money. By contrast, the usual installment loan , which is used in all kinds of financing, offers slightly more freedom. You can also influence the credit period or the amount of the repayment installments in advance.

For all three types of credit, it is important that you comply with the guidelines, otherwise you run the risk of being threatened with seizures. Never underestimate the burden of monthly installments. For example, with mini credit, make sure that you can repay the money by the agreed date at the end of the next month or two. Interest rates can often be improved by including a second borrower or guarantor in the loan agreement. It would also be conceivable that you offer the caregiver for the loan your car or other valuables as a security. In addition to your regular salary payments, these serve as an additional safeguard for your potential loss and lower your credit costs.

Bank or travel agency Book a holiday now and repay it later or through installments? These opportunities exist not only through banks, but also with some travel providers. Before you decide on the holiday loan, you should inform yourself about all costs. Compare the offers of a tour operator exactly with those of banks and use our credit comparison. Online, this is convenient and without risks at any time feasible.

What disadvantages a holiday loan brings

What disadvantages a holiday loan brings

Reasonable contemporaries, a holiday on Pump probably does not even come to mind. A dream holiday is rather a worthwhile savings target and should by no means bring with it a debt. However, sometimes it does quite well to override the limits of rational thought. Especially if you are in dire need of a holiday or want to relax again before you start a new job, for example. However, it is important to weigh what a loan means to you. For against a debt for a trip speak strong arguments. You should then get away from such thoughts if you already have credit obligations. Similarly, much speaks against a holiday loan, if you do not want to worsen your creditworthiness. One reason for this may be that you need a loan more urgently in the foreseeable future, for example, for the purchase of a car, a property or for the furnishing of your apartment.

Consider the consequences

Two strong arguments always speak against taking out a loan. For one, a loan is always a burden on your credit rating. Regardless of the nature or amount of this, your creditworthiness will decrease (this also applies to loans without credit bureau). On the other hand, every loan brings you a financial burden in the form of repayment installments. As a rule, you have to transfer these punctually month after month. This will noticeably limit your financial freedom until the day you pay the last installment. Consider both factors equally when you think about making a loan application. Adding to your credit rating and the additional burden on your finances are the risks of permanent over-indebtedness or other scenarios if you are a permanent borrower.

In contrast to a loan for a car or a property, a holiday loan is not a permanent equivalent. No investment at all, which can bring you regular returns. From the borrowed money, you will no longer benefit from the landing of your holiday flier in your home country. The benefit of such a loan is at best limited to a nice experience and that you come back from the journey. That certainly has a certain value. If it is absolutely necessary to have a loan for the holidays, you should not strike at the first travel offer. Compare portals where you can find holiday deals at bargain prices for every season. With just a few clicks you can find and compare low-priced offers through travel portals such as Urlaubspiraten.de or Urlaubsguru.de. Under certain circumstances, you can find a cheap holiday offer there with a little flexibility, which can be realized without a vacation loan. So you can start not only with the question of financing, but also with the vacation itself. If you find a bargain that you can afford without credit, you bring the urgent holiday desire and the reason equally under one roof.

How to reach a decision

How to reach a decision

So far, we deliberately left out the form of the holiday. If you are planning a holiday loan for a six-month trip around the world, that is a different calculation than a week “last minute” in the Balearic Islands. Make a calculation in time how high your holiday credit should be. It is essential to calculate the conditions under which you can guarantee the eradication. So what amount is left every month after deduction of all expenses and is available for repayment. Before you start looking for the appropriate loan, both your required travel budget and your financial resources must be determined. Keep in mind the pros and cons. You may address the topic to friends and get some outside advice. If your holiday trip is worth your while, you should make that decision. The bottom line is that you need to be happy with it.

At this point, you still have to ramble on the decision for a holiday loan should it be better to spend another night sleeping. Basically, financing a vacation trip is an emotional decision. It represents nothing more than a pleasure purchase, with which you treat yourself something. With reason, the temporary debt for this purpose can not be explained. Even if you have earned the trip as a reward or a break, or if it represents a unique opportunity, you have disadvantages that are likely to gain weight on prolonged consideration. Think about the future and be realistic about how you will think about what you do after the holidays. The only important thing in the end is to answer the question whether the loan has paid off for you. If you can answer that with a convincing “yes”, nothing further speaks against a holiday loan. Of course, at this point, the representability of your holiday loan must be secured.

Check alternatives

Before you plunge into your credit for your holiday trip, it makes sense to look for other ways of financing. Maybe you have a deposit account or other investments that you can do without. If you “repost” such funds from reserves into your vacation fund, you may be able to avoid a vacation loan altogether. However, you have to weigh up whether your holiday is worth so much that you, for example, dissolve your life insurance or a building savings contract. By freeing up money for travel through such channels, you’re getting around a loan or you’re going to need only partial funding. One way to borrow money, for example, is to ask friends or relatives for a loan. In this way, you bypass a loan as well, with this type of fund raising brings with it explosiveness. You will receive the money on the basis of a relationship of trust, which, as everyone knows, can easily falter when it comes to money. If you disappoint your financiers, you may risk a long-standing friendship, disrupted family relationships or other difficulties in the private sphere.

Not a good alternative is the overdraft on your checking account or credit card. Such methods can easily provide you with cash up to a certain (overdraft) framework, but that’s expensive. Compared to an average installment loan, depending on the bank you pay horrendous discretionary interest. In spite of the persistent low in the general interest rate level, these are often in the double-digit range. For a vacation loan like all other loans you should not use your credit line. A permanent use can mean the danger of a debt spiral and even has a negative effect on your creditworthiness in the medium term. If you decide on a holiday loan, you should at least pay attention to their savings potential on potential savings and take advantage of them in your favor.


The stomach says yes, but the mind no – that could be the mood on the subject of holiday credit. Considered purely with reason, the question of a debt for a holiday trip rather not. Nevertheless, there are a number of reasons for this. A long-held holiday wish, a unique opportunity or the much-needed break are just a small selection of arguments. Because not every decision has to be made exclusively under rational conditions. Sometimes it just feels good to act emotionally and a little bit unreasonable. Before you miss a trip for whatever reason and regret it for a long time, apply for the loan. But then it is up to you to take this step without negative consequences. Enjoy your journey and do not constantly ponder your debt. In any case, make sure that your financial resources are not overwhelmed. If you have to repay a holiday loan for years or threatened you ultimately over-indebtedness, you will certainly regret that more than a missed vacation trip.

FAQ – Frequently Asked Questions

Where can I get a vacation loan? When should I not finance my vacation by credit? What advantages does a vacation loan offer me? What distinguishes vacation credit from other loans? What are the risks of a holiday loan? What effect does such a loan have? Which alternatives to vacation credit are there?

Where can I get a vacation loan?

Some tour operators offer the option of paying off your holiday at once at a later date or in monthly installments. Otherwise, there is the prospect of a loan with all banks or other credit providers. For vacation financing, for example, offer a mini loan, the short-term loan or the regular installment loan.

When should I not finance my vacation by credit?

If you plan on financing in the foreseeable future, for which you need the best possible creditworthiness, this speaks against a holiday loan. A more pressing reason, on the other hand, is when you are already in debt. Then you should not expect any further obligations, but primarily eradicate the existing loans.

What advantages does a vacation loan offer me?

Always on the premise that you do not go financially on the ice: You can make a trip through a holiday loan very flexible. If you do not have enough money at the moment, you can obtain it by credit if you have sufficient creditworthiness. When it comes to more complex travel plans such as a cruise, a wedding trip or a world tour, a loan can be helpful. You do not have to save a lot of time, but have the budget needed for your dream trip within a few days.

What distinguishes vacation credit from other loans?

Not much, basically. Even a loan offered to you by the tour operator is nothing more than a conventional installment loan. Behind it is a partner bank of the travel agency or similar. You can also obtain a holiday loan through a bank by applying for free use or without earmarking. Bear in mind, of course, that you can not offer a holiday as a security for the borrowed money, unlike a property or a car of the bank.

What are the risks of a holiday loan?

As with all other loans, there is a risk of default. For example, you lose your job or become ill and can no longer service the loan installments. However, even less drastic events can lead you to risk over-indebtedness. Any such risk is automatically borne by every loan. In addition, you deteriorate your credit rating. This can increase your interest costs with further credit requests or in the worst case lead to a rejection.

What effect does such a loan have?

At first you have to expect a deterioration of your credit rating. You will be charged with the next loan request, almost by taking your holiday loan. The intended use hardly plays a role. Rather, the fact that you needed a loan. This has a negative effect on the chances of a grant as well as the conditions of a loan.

Which alternatives to vacation credit are there?

Instead of banks, you can ask for a loan in the circle of acquaintances or relatives. However, you have to pay back as well. However, a holiday does not always have to exceed your financial framework. With flexibility, you can find travel tokens that are very affordable. For example, you can book a week on the Red or Mediterranean Sea for less than 500 euros. Then look on travel portals and compare both the prices and your financial resources.

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