As seen in the example above, a holiday trip paid with a payday loan can easily become an expensive pleasure. Therefore, it pays well to look good before you go out and borrow money for the holiday trip.
Examine the market before borrowing for vacation
There are many players in the market for payday loans to travel-enthusiastic Danes. You can choose to either borrow from the bank or take out a payday loan from one of the many providers of quick payday loans. Either way, it pays to look at the various options before applying for a travel payday loan.
When comparing the different payday loans, you should compare the APR for the payday loan. ÅOP stands for annual percentage rate, and is a figure for the total price of borrowing for the holiday. The higher the percentage, the more expensive the payday loan. The reason why it is best to compare the APR is that the figure contains all the costs of the payday loan, as opposed to the interest rate, which, for example, does not include payment fees and the like.
Although you may think that a bank payday loan is the cheapest option, it may well be one of the cheapest providers. There are also expensive bank payday loans, so check the market before applying. Especially the largest banks are known to have very expensive consumer payday loans.
Alternatives to holiday payday loans
If you know that you sometimes want to go out and travel, it would be a good idea to make a savings for vacation, instead of borrowing for travel. In the example below you can see that you have to pay almost 1,000 kr per month for 3 years if you want to borrow money for holiday at a price of 25,000 kr.
- Seals: SEK 1,034 monthly. Total price: DKK 37,212 See more here!
- L’Easy: SEK 997 monthly. Total price 35,892, – See more here
- The payday loan: SEK 906 monthly. Total price 32,616, – See more here
If you instead create a savings account for the purpose, you will have 25,000 for the journey already after approx. 2 years – So you have a year after already saved 12,000, which can be used for the next holiday.
If you know that you would like to go on holiday each year, then you can insert 2,000 kr every month in your holiday account – Then you do not have to borrow for travel at all.
I recommend that you look for great deals on travel and holidays at Rejsezoo.dk: Visit here!
Categories payday loans for Tags vacation , payday loan money , private finance post Navigation payday loans for solar cells New Danish service provides free music online