Holiday Loans

Personal loans can be used for all types of holidays, but it’s perhaps most suitable to apply for a loan if you’re planning a particularly special trip such as…

• Family holidays

Travelling with multiple different parties can be pricey. Whether you’re treating your friends and family to a fabulous holiday or pooling funds together for a shared adventure, a personal loan could help.

• Your honeymoon

Make it a honeymoon to remember by boosting your budget with a personal loan. With the money you need ready to go, you can spend less time stressing about paying for your honeymoon, and more time enjoying your romantic getaway.

• Expedition trips

Safaris, hiking trips, rainforest explorations and more provide unique experiences… but can be costly. A loan can help you to support these adventure-packed journeys.

• Around-the-world cruises

Sail away to see the sights of the world without worrying about paying for it all upfront. Spread the cost of an expensive cruise over a period that suits your financial circumstances.

• Special celebrations

Splash out on that trip of a lifetime to celebrate a birthday, anniversary, or graduation. With a loan, you can borrow the money you need to make a trip extra special, from upgraded flights to unforgettable activities.

• Seasonal getaways

Traveling at peak times can be unexpectedly pricey. If you’re flying home for Christmas or travelling over the summer holidays, you might find the costs slightly out of your budget. A loan could help top up your funds.

• Destination weddings

Wedding loans can help you to cover various expenses, from your venue to a show-stopping three-tier cake. But what about travel and accommodation for your wedding party? Whether you’re organising a wedding or attending one, a loan could help you get access to the funds you need.

• Last-minute deals

Whether you simply haven't planned your trip yet or you're waiting for an unbeatable last-minute offer, don't get caught off guard if your funds are insufficient. With a loan, the funds you need could be with you in just two working days, giving you extra flexibility.

Setting yourself a clear holiday budget will ensure you only spend what you can afford. Follow these four simple steps to help you stay within budget:

• First things first, decide how much you can afford in total. Whether you’re using savings or borrowing money, you need to know how much you are able to spend on the whole trip
• Research a few different destinations to get a rough idea of how much flights and accommodation could cost. You’ll soon discover which destinations are most affordable for you
• Once you’ve decided on a destination, you can start to finalise your budget for things like food and drink, airport transfers and activities. Don’t forget to include smaller expenses such as passport renewal, travel insurance and mobile roaming charges!
• Set your daily spending limit by dividing your total budget by the number of days you’re planning to travel for. This will help you to plan a daily itinerary that fits within your budget

Travelling can be an expensive endeavour… but it doesn’t have to be with these top money-saving tips:

• Travel on ‘anti-social’ days such as New Years’ Eve, or in the middle of the week
• Consider spending more on convenient extras to save you money in the long run, such as booking to stay in a lounge rather than splashing out on food and drink at the airport
• Access the best exchange rates available by getting a travel credit card for your trip
• Research the very best deals by letting comparison sites do the heavy lifting for you, keeping an eye on social media for last-minute deals and signing up for newsletters from popular travel agencies
• Book as much as you can in advance, from accommodation through to activities. You’ll find most attractions offer some kind of discount for booking early

Discover even more travel insights here.

Before you start working out how much money you need to take with you, think about what type of traveller you are. Are you jetting off on a luxury, no-expense-spared getaway or do you prefer a low-cost trip immersing yourself in local culture? This will undoubtedly impact how much you should take with you on your travels.

• Find out how expensive your holiday destination is. Popular cities and tourist areas are likely to be much more expensive than visiting a more rural area, for example, so always factor this in when planning how much holiday money you need to take with you
• Work out what you need to pay for whilst on holiday. The amount of spending money you need will depend on how much you’ve already booked in advance. You may have already booked key activities online, for example, which will reduce the amount of cash you’ll need to take with you
• Calculate how much transport will cost. Consider any airport transfers, train tickets, car rentals or taxis you’ll be requiring during your trip
• Estimate how much you’ll spend on meals each day – plus snacks and drinks. Research the average cost of meals in the area you’re travelling to to make sure you’re budgeting for the right amount
• Factor in exchange rates. This might seem obvious, but it’s something you should always consider if you’re travelling to a country with a different currency.
• Take a little more than you need. Most holidaymakers go overbudget, and you don’t want to run out of spending money when choosing a souvenir or two!

According to Statista, the average UK holidaymaker spends an average of up to £4,000 on getaways each year. But how can you fund these expensive trips away? Here are just some of your options:

• Save up

Using your existing savings could be one of the most cost-effective ways to fund a holiday as you’ll avoid paying any interest or other fees. Setting aside a portion of your income each month can be challenging, though, and it might take a little while to build up enough money to cover all your holiday costs.

• Take out a personal loan

A loan allows you to book that dream holiday sooner, by giving you access to the funds you need quickly. Simply pay back what you owe, plus interest, over a series of monthly instalments. Take a look at our loan calculator to find out how much it could cost you to explore a new part of the world.

It’s important to only borrow the money you need and can afford to pay back. Do be aware that if you miss or make a late payment, this could have a negative impact on your credit score which may make it harder to borrow in the future.

• Use your credit card

A credit card can be a suitable way to make lots of smaller purchases, as it’s a more flexible kind of finance. According to Bankrate, the average maximum credit limit is less than £4,000, so make sure you check your personal credit card limit so you know how much you’re eligible to borrow.

Credit cards often carry high APRs too. So, unless you have a 0% credit card, it’s important to pay off your balance in full by the end of the month to avoid being hit by interest charges. If you’d prefer to spread the cost of your holiday over a longer period, a credit card might not be the right option for you. Our guide on the difference between personal loans and credit cards goes into more detail.

• Consider travel payment plans

Travel agents sometimes offer payment plans that allow you to spread the cost of your holiday over a set period. However, these plans may only be offered on holiday packages sold by specific companies, with varying interest rates and loan terms available. This could potentially give you less flexibility when planning your trip.

You might also be required to put down a deposit to secure your trip. If you don’t quite have the funds ready to pay a deposit, a payment plan might not be the right option for you.