Guest Post by David Smith
If you are planning a trip and do not have the money to pay for it, then there are options available to you. However, some of these can be dangerous as they will get you in to financial trouble. It is therefore wise to take a look at the list below and make sure that you are not taking a big risk when you are getting together the money for your trip.
Personal loan
Getting any sort of personal loans is certainly a very easy way to finance a vacation. However, they can be very expensive and may take a long time to pay back. They can end up making your trip extremely expensive, if you allow for the interest and fees. It is therefore wise to avoid using these to pay for a trip.
Credit card
A credit card is a very convenient way to pay for a trip. Not only can you use it to pay for flights and hotels but also for items while you are away and to draw out money. The problem is that credit cards have different charges when you use them abroad. They charge interest straight away for any cash withdrawals in most cases anyway but do it abroad and that can be even higher. They also sometimes have fees for using the card abroad. If you do not pay back the outstanding balance each month you will also have fees for that too and interest to pay.
Overdraft
An overdraft is an extremely expensive way to borrow money. Many people do not realise how it compares to other types of borrowing. If it is an unauthorised overdraft the fees can be even higher. It is certainly not meant to be a fund for spending on a holiday and it should only be used for emergencies and avoided wherever possible.
Going cheap
It can be tempting to fund a holiday by doing things cheaply. However, it is important to be very careful when you do this. You may decide to not bother with insurance, but if you need medical help it could be extremely expensive. You may decide to use a cheap airline, but may end up paying lots of money for your luggage, meals and entertainment. You may go for a cheap hotel but find out that it is very poor quality wise or it may even be unsafe.
It is therefore very important to think about your finances before you take a trip.
