Wednesday, March 5, 2008

Going On Vacations With A Personal Loan?

by: Melissa Kellett

The possibility to use a loan for going on vacations raises many questions. Which loan should I apply for? What terms or conditions are more convenient? Are vacations worthy enough as a loan purpose? Where do I find a lender?

Are Vacations Worthy Of A Loan?

One may think that taking a loan for going on vacations is an unnecessary expense. However, the truth is that a time off is essential not only for your body but for your mind too. This is a scientific fact of which not only workers but also, managers and the government are convinced. The ILO (International Labor Organization) is clear about the subject: Vacations are a Right.

Given that vacations are a right and a need, what you have to analyze is whether you are resorting to a loan due to a temporary or long term lack of cash. If you just could not save enough money but your income will let you repay the loan without sacrifices, then there is no question about it, a Personal loan can be the solution for paying for vacations.

However, if your income is not going to let you repay the loan without making sacrifices what you need to analyze is weather the other expenses you will have to cut in order to repay the loan are more essential than a well deserved annual break or not. Vacations are a necessity but there are other needs of a more essential nature. As long as you do not cut on these ones, the use of a loan for paying for vacations is justified.

Which Loan And On What Terms?

Since going on vacations is a personal purpose, any loan oriented to satisfy personal purposes is good for this aim. The options are varied: You can request a personal unsecured loan, a personal secured loan (which can be secured by many different assets including vehicles) or a home equity loan (secured on the equity on your home).

The three types will accomplish the purpose of financing your vacations. However, only the last one will provide the cheapest source of finance. Nevertheless, Which loan type best suits your needs depends on the amount of money you need, the interest rate you are willing to pay, whether you are willing to risk repossession or not and whether you actually own a property or vehicle to use as collateral.

Unsecured Loans have higher interest rates but no risk of repossession. They are the best choice for small amounts of money and the only option for those who do not own their car and home. If you already have some money and you just need some extra cash to complete the costs’ amount, an unsecured loan is the smartest choice. Secured Loans on the other side come with the risk of repossession but charge less interest and have more flexible repayment programs.

Where Do I Find The Lender?

The answer to this question is simple: Online. By searching the net you will find that there are lots of lenders offering personal loans and many of them have offers specially tailored for those who plan to use the money for going on vacations.

The usual advice is to shop around for lenders, requesting loan quotes, bargaining with them and selecting your lender after comparing what all of them have to offer. Take special attention to APR, Fees and Costs as some lenders will offer lower APR loans but the loan fees and costs might turn the loan more expensive than one with a higher APR.

About The Author

Melissa Kellett is an expert loan consultant who has worked for twenty years in the financial industry and helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and many other types of loans and financial products. If you want to learn more about Vacation Loans and Bad Credit Loans you can visit her site

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