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Take a Holiday on Credit?

Many people long for the perfect getaway, whether it is a day, two days, or two weeks. However, the idea of paying for that much-needed stress reducer is often enough to create more stress than the holiday reduces. To this end, some companies are offering holidays on credit.

Consumers can choose from a multitude of packages offered at varying rates per month. This allows Britons to choose holidays that fit into their budgets, while knowing the monthly cost ahead of time. (Spending while on vacation is another matter...)

The difference with these types of holiday programs is that the vacationers know what their monthly payments will be, and they avoid having to pay for the holiday in one lump sum. One reason many people do not go on holiday is that traditionally, the vacation needed to be paid for all at once. Now, with these new options, the cost is spread out over a period of time.

A benefit to this type of program is the potential for interest-free credit. In comparison to high-interest credit cards, another funding method frequently used to pay for holidays, these alternative programs can be much more cost effective.

This does not mean that other methods for financing a holiday should be ignored. As with all types of purchases, shopping around can lead to savings.

Other types of loans, such as personal loans, secured and unsecured loans, and even home equity loans can be used to finance a holiday. The trick is to do the research to determine the best financing plan for your needs, your ability to pay, and your credit history. All of these factors come into play when determining the best holiday loan options.

A few weeks away can result in a lifetime of wonderful memories; but these need to be compare to the amount of time it will take to pay for the holiday.

Some people may prefer to save for the cost of the holiday rather than pay for it over an extended time afterwards. However, some "once in a lifetime" opportunities may be too good to pass up. So again, it pays to research a variety of funding opportunities before booking the flight.

Also, consider using a combination of options for your trip.

For example, a credit card may be a good choice for the smaller booking fee, and provides you with a clear receipt of your purchase in the event you need it. Many credit cards also offer some type of buyer protection, which can also be a benefit when traveling. Moreover, many online booking options will only accept credit cards.

If your card offers other rewards, such as free travel miles, consider using the card for the initial booking, then paying off the credit card with a personal loan. That way you can reap some of the benefits of the card, yet pay off the balance with a smaller-interest loan.

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