DATE: April 18, 2020
This year’s holiday season is already in full swing and you are probably already browsing the catalogs of travel agencies and deciding on a specific destination that you would like to visit this year. This is the pleasant part of pre-holiday preparations. However, it often happens that you already have time off at work and you would like to move somewhere beyond everyday life – outside your home, your city, or even the republic – but you find that you do not have enough money for it.
It is nothing new that when we take into account the total costs associated with the loan, ie the RPMN (annual percentage rate of charge), the most advantageous is to borrow money from the bank.
The difference between a loan at a bank and from one of the non-banking companies is not entirely negligible: if you rent a holiday at a bank, you can reimburse it by 25 percent, if at a non-banking company, this number can climb to 40 percent. However, these differences are also narrowing more and more due to sufficient saturation of the loan market and high competition between non-banks, but also between banks and lending companies.
The easiest choice, when we talk about banks, is to use the permitted overdraft (ie the so-called overdraft) that you have set up with your current account at the bank to buy your holiday. Alternatively, you can pay for the holiday with a credit card, which also provides an interest-free period (usually 30 to 60 days). However, not everyone is a credit card holder, not everyone has an overdraft account, and if so, the amount of interest on overdrafts is almost twice as high as the interest rate on a standard consumer loan.
It is therefore a more advantageous choice. If he does not apply for a large amount (which is not a threat when paying for a holiday, only if you travel around the world), you have a chance to get a consumer loan without a guarantee. However, the disadvantage is that if you need to borrow, say, only 250 dollars (for example, assuming that you have saved part of the money for the holidays), most banks will not provide you with a consumer loan of this amount.
Another option that is offered to you if you do not have enough money to buy a holiday trip is the so-called installment holiday. Today, it is offered by almost every major travel agency and there are no small players on the tail. This option is promoted mainly by large travel agencies, selling online tours of several tour operators operating in our market.
There is nothing special about the product called “installment leave”. In essence, a travel agency has a contract with a non-bank lending company (exceptionally with several) in order to be able to offer one of its credit products to cover the cost of purchasing a holiday.
You have more freedom if you look around a bit and decide for yourself which specific non-banking company you will conclude a loan agreement with. Many of them offer products that may be right for you. Unfortunately, the opposite is also true: if you make the wrong decision, you can pay off unnecessarily high money on your holiday “on debt”. In addition, not all non-banking companies offer fair solutions, so be careful. The golden rule is to borrow only from large and solid companies that already have a quality reputation in our market.
When deciding on the type of loan you would like to take out to cover your holiday expenses, you need to take into account, in particular, the amount you are missing. If you are lucky enough to save most of your holiday “budget” and just need to prove a small amount, in the order of a few tens of dollars, and you need this money quickly and without unnecessary bureaucracy, so-called loans can be the solution for you.
It is possible to settle them promptly via the Internet or even by SMS message, and in addition to the fact that they do not verify credit registers and do not require any form of guarantee, you do not have to submit a receipt. So it’s a very fast and quite convenient way to get a small amount of money.
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