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Article Title: Taking Out Loans For Travel
Author: Peter Kenny
Word Count: 514
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If you want to go on holiday but cannot afford the large payment in one go, then you might want to think about taking out a loan for travel purposes. Many people never get to travel to the places they want because of a lack of current cash flow. However, more and more companies are offering loans specifically for travel and holidays. If you want to know more about these holiday loans, then here are some tips about taking out a loan for travel purposes.
What are the costs?
Travel loans are a form of personal unsecured loan, although you can also get secured travel loans in some circumstances. You can usually borrow between �1,000 and �25,000, depending on your circumstances and how much you need to borrow. The length of repayment is shorter than traditional unsecured loans, with typical terms being between 1 and 4 years. You pay back the loan monthly as you would any other loan. Interest rates are fairly competitive, and range between 7 and 10%.
Why use a travel loan?
There are many reasons why you might want to use a travel loan, even if you could afford the holiday with your savings. Many holidays require a large fee up-front in order to secure the booking, and this can be a strain on anyone�s finances. Getting a travel loan will allow you to pay for all the associated costs of the holiday whilst still having enough money to live right now. A travel loan can allow you to travel to the places you have always dreamed of going, but thought you would never go to because you couldn�t save enough money at once.
Travel benefits
Another advantage of some travel loans is that they come with added travel benefits. Some loans include items such as free travel insurance or possible discounts on some holidays, depending on which lender you use. If these offers can help reduce the cost of your holiday, then it might be worth checking out the loan.
Who provides travel loans?
Travel loans can be got through your normal bank, or through travel agents who have teamed up with lenders to offer travel loans. There are a variety of loans available, and it pays to shop around to find the one with the best features and rates to suit your needs.
Why not a normal loan?
Getting a travel loan is slightly different to getting a regular unsecured loan, but is it better? Well, that depends on your circumstances and how much you need to borrow. Travel loans are dedicated to travel and holidays, and will help you get a better deal on your holiday. However, they have short loan terms, so if you want a longer term then you might want to go for a normal unsecured loan. In general, if you can afford to pay back the travel loan in the shorter term, then it will save you money and help you get the holiday you always wanted.
About The Author: Peter Kenny is a writer for The Thrifty Scot Please visit us at
http://www.moneywize.co.uk/carloans.html and
http://www.thriftyscot.co.uk/Loans/debt-consolidation-loan.html
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