Unsecured Holiday Loans – A Rejuvenating Jaunt Ahead
It is always time for a vacation when the weather is getting you down or perhaps the job is wearing at you. You may not have the money to go on a vacation, but there are ways to arrange to go on vacation by borrowing the money and just getting away. Many consumers will arrange unsecured holiday loans so they can take a rejuvenating jaunt from the stress of everyday life. Whether it is at one of those all inclusive places or just travelling across the country, it all takes money and if you do not have ready cash to spend a loan might be the right option.
Unsecured loans may be a little more expensive than regular secured loans because they are not secured with any equity in your home or other investment, but that extra expense is definitely worth it when you can get away to warmer climates in the winter time or a seaside resort in the summer. That break from work, the kids, the stress of everyday life is just what you need. One client just could not take the rainy, cloudy cool weather any more this spring and went on a four day trip to a vacation resort with guaranteed sunshine. He felt a lot better as a result and was ready to go back to work and be productive.
What is an Unsecured Loan
There are many types of loan products available for consumers to meet their needs to borrow money. Secured loans provide a better interest rate than unsecured loans. When you take out a secured loan, consumers must offer up some form of equity to secure the loan. The lender is willing to offer a lower interest rate and better terms to reflect that there is less perceived risk on their part. After all they can always sell your equity to recover the loan.
Unsecured loans on the other hand are loans without any security and have a much higher perceived risk attached to them as a result. Lenders will attach higher interest rates on those loans to reflect the perceived higher risk associated with lending money to a consumer without any security.
Consumers will arrange for unsecured loans every day for vacations to rejuvenate themselves and for many other reasons as well. They need to have a good credit rating. There should be no records of unpaid loans, missed payments, late payments or any judgment actions against them. They should have a full time job and make sufficient money per month to handle all of their living expenses, their existing debt and of course the new debt that they would take on for this vacation loan.
If you are uncertain about whether you can afford it or not, add up all of your rent or mortgage payments, property taxes and loan payments including credit card payments. If this number is greater than 35% or 40%, some lenders may not want to lend money to you. Check with a lender and confirm whether they will perceive you as a good credit risk or not with your current income and payment situation.
Vacation – A Rejuvenating Jaunt Ahead
We all need a break from work and our everyday lives. A vacation gives us that break from reality so we can relax and replenish our energy. In many cases, consumers do not have the ready cash to pay for a trip and will turn to a bank or a lender to borrow the money. Some banks will lend the money and some will not. You usually have to meet them at the branch which takes time and you might even have to get time off work to meet the appointment schedule of the bank lender. Applying online is so much easier. All you have to do is fill in an online questionnaire and perhaps provide copies of various documents that the lender may want to see. There may be a phone conversation as well, but that is pretty much it. Pretty easy when you think about it and compare to the way we used to borrow money.
Arranging Your Trip
Your friends have suddenly decided they want to go on a trip and you are invited. You need to get away from the job to reduce stress. You cannot stand the winter any longer and you just have to get away to a Caribbean island. Maybe there is a family member that you have not seen for a long time who has invited you to visit. These and thousands more are all valid reasons for going on a jaunt and arranging for an unsecured loan.
With this money, consumers can take the trips they wish to and then repay the loan over the following year. Many unsecured loans are for 12 months duration, however some are longer. Consumers like to stick to a one year period since it allows them to repay the loan in that time and then arrange for another loan the following year to go on another vacation. If they can repay the loan more quickly, so much the better, since this will allow you to take another vacation!
Plan Your Vacation in Advance
Many unsecured loans can be arranged very quickly. Some even within 24 hours, however if you plan in advance, brokers and lenders can take the time to find you a more competitive loan at the best interest rates. It may only save you a few dollars a month, but this is money that is better in your pocket rather than someone else’s. Take the time and plan you your vacation and your unsecured loan arrangements to go on that rejuvenating jaunt.
If you can save some money towards your vacation, you will only need to borrow a smaller amount. Reducing the cost of the loan, reduces the total cost of your vacation as well. If you did have a unsecured vacation loan and were able to repay it early, why not maintain the same payment rate and place the monthly payments in a savings account. This money can then be used to be put towards the next vacation reducing the size of your loan. You may not earn much in interest income on your savings since interest rates are so low right now, but at least it is there for your next vacation.
When one of your friends says, hey let’s go to that all inclusive resort we went to last year, you will be ready to go and have money already saved towards it. Now that is really good planning!