Travel opportunities don't always come at the most convenient time. Your kids are growing up fast, and the chance to spend time with them as children and teenagers will quickly disappear before you realize it. Sometimes, a travel deal might be too good to pass up. And most Americans don't have enough vacation time not to make the very most of it when they can.
So if your budget doesn't quite match up with your summer travel possibilities, a small personal loan can be the answer you've been looking for. But how can you make the most of borrowed money for a trip of a lifetime? Here are five tips to remember.
1. Prepare for a Loan
Before you actually sign an application for any loan, research your credit score and history. Even if you can’t see your actual current score, you can still ensure that you have a solid history. If anything appears incorrect, dispute it with the credit agency. If there are black marks on your history that may soon expire, you could opt to wait before applying.
In addition, make a list of companies or institutions that you may want to apply for a loan through. If you have several options, you can choose the loan with the lowest fees or the lowest interest rate.
2. Plan a Budget
How much do you want to borrow? Don't make your plans based on how large an amount the loan agency will give you. Instead, make your vacation plan first and then borrow only as much as you really need.
Research estimated costs, including airfare and transportation, hotels, resorts, theme park tickets, and a daily food budget. Then, make a determination to stick to your budget so you can truly enjoy your vacation without adding stress.
3. Use the Budget Wisely
When you borrow money for something important, make the best use of those funds. When planning a big vacation, look for ways that you can reduce your budget for things that are less important to you.
If you’re heading to the Caribbean, for instance, would you trade a less exotic resort for a chance to swim with dolphins? If going to Europe this summer, can you opt for a less expensive city like Prague instead of a higher-cost city like Paris?
4. Focus on What Matters
What do you want to spend your borrowed money on while traveling? Most travelers, when looking back on their dream vacations, remember the big experiences more than the souvenirs or impulse purchases. If this is true for you, focus your spending on creating memorable experiences.
Rescue your money from impulse purchases, and decide in advance what items would make the biggest impact. If you take the kids to Disney World, for example, what experiences will they find the most memorable? Is it building their own lightsaber or breakfast with a Princess? Which would you remember more fondly: dining overlooking the Animal Kingdom or diamond jewelry with Mickey Mouse ears?
5. Pay the Loan Quickly
Once you obtain your personal loan, start implementing your plan for paying it off quickly. The sooner you pay down any debt, the less you'll pay in interest and the less stress you'll have about meeting a monthly obligation. Each month that’s possible, pay more than the standard monthly amount. Make payments automatic. And put windfalls — like gifted money or year-end bonuses — toward the debt.
At Central Finance, we can help you realize your travel dreams even when they come at inopportune times, so you don't have to miss out. Call today to learn more about our personal loan services.
