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Winter

How to finance a Winter Holiday

Escaping the cold of Britain can be great, but how are you going to finance your winter holiday? Here’s your winter holiday financing options.

Winter is full of wonderful things, like Halloween, Bonfire Night and even Christmas, but that doesn’t stop the bad aspects creeping in. Now, if you’re a fan of the cold weather, good for you… But for those of us that crave a little sun in these dim months of winter, there’s not a lot we can do to satisfy our summer needs. Unless, we escape for a winter holiday. But, with Christmas being one of the most expensive times of the year, how do you fund your trip aboard?

Well, luckily for you, we’re here to present you with some holiday financing options. In this post, we go through the alternative methods you can use to finance your holiday, including credit cards, savings and even guarantor loans – we explain what they all are and why they could be a good option for you. We even have some tips on how to save for a holiday. So, without further ado, let’s get into your winter holiday financing options.

3 Ways to fund your Winter Holiday

Credit Cards

The first way you could finance your winter holiday is by using a credit card. The benefits with booking on your credit card are that should anything happen, meaning your flight is cancelled or you cannot stay in your hotel, you’ll be more likely to get your money back. Due to the Consumer Credit Act, even if a company goes bust, and you haven’t got travel insurance, you can still claim money back from your trip. This act makes it easier to claim back should anything happen. Whilst it’s not ideal to finance a holiday on your credit card, if you’ve got a low APR, it’s an alternate method that means you can pay for your trip in advance.

Loans

Another way to finance your holiday is through a loan. Now, whilst it may seem a little extreme to take out a loan just for a holiday, it is an option some consider. Because, there are reasonable loans out there, with rates that mean you’re paying manageable monthly payments for a trip away. However, if your credit is less than ideal, you could use a guarantor loan. Guarantor loans are essentially personal loans for those with bad credit, meaning that they can be used for almost anything – including a trip abroad! It should be noted that guarantor loan interest rates vary, and can be anywhere between 29.9% – 69.9% APR. You can borrow anywhere from £1000+ (amounts vary between lenders). Those that tend to use a loan for a holiday may use loans with better rates, because they have a good credit score. Using a guarantor loan for a holiday can be a costly option, so be wary before you dive in!

Savings

Finally, there’s an option you could use to finance your winter holiday – your savings. Yes, whilst it may have taken you a little while to save for your trip, it’s probably one of the best options to finance your holiday. Why? Because unlike with loans and credit cards, there’s no interest to pay on top of your holiday! Whilst it’s very easy to tell you to use savings, you may not have enough or any to go away with. Luckily, we’ve got some great savings tips, so you can finance your winter holiday in the future.

Winter Holiday Saving Tips

So, whilst the first two options are quick and easy methods to finance your trip, paying interest is not ideal. Using your savings means that you won’t be paying more than you need to. Yes, it may take a little longer but if you follow our saving tips, it may come sooner than you think.

When it comes to saving for your trip abroad, there are some little things you can do to get yourself started. We’d always recommend using a savings account or a bank account, as opposed to a piggy bank. The temptation to crack it open when you need a bit of cash is ever present, which means that you could start to slowly deplete your holiday fund. Which, obviously, is not ideal when you’re trying to save. Start saving in an account.

There are loads of great apps that can help you save. One app in particular helps you save through rounding up your purchases. For example, if you buy a coffee for £1.80, it will round it up to closest £, putting the money into a savings account for you. It’s little things that you wouldn’t notice, and it can actually help you save money. It also allows you to budget too, keeping track of your spending. It’s a great way to start saving for your holiday, without actively paying into a savings account.

Alternatively, you can set yourself a budget. It can be useful for savings, and to make sure you’re not living payday to payday. Outlining a budget means you look at your income, after tax, weighing it up against your outgoings – whether that’s car insurance, your Netflix account and your gym membership (to name a few). What you can do, is work out what you can and can’t afford to cut out. If you haven’t been to the gym for months, get rid of your membership. Setting yourself weekly spending amounts can help you budget.

Say you set aside a certain amount for food, bills and leisure, the remaining amount can go into your savings account for your next holiday! Budgeting is a great way to make sure that you’re setting yourself a side some cash and not just burning through your pay.

It should be noted that if you’re going to use credit options to finance a holiday, you should always seek independent financial advice. Taking out a loan you cannot afford to repay can cause serious money problems.

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