Our guide to financing your holiday

As exciting as holidays are, they’re often expensive and can have a big impact on your bank account. With some intentional budgeting preparation, avoiding that extra stress doesn’t have to be complicated. Below, we look at your options regarding budgeting and paying for your family holiday, making the whole trip that bit less stressful.

Think about what you can afford 

The first and most crucial step when planning your upcoming holiday is knowing what you can and can’t afford. While we might all love nothing more than spending two weeks at a five-star beach resort in Mauritius, it’s not a possibility for everyone. Whether you have £1,000 or £10,000 to spend on your holiday, you need to begin your search by looking at destinations you can visit within your price range.

As the cost of flights has risen in recent times, it may even be a good idea to look at locations that are a little closer to home. This way, you will have more money to spend on accommodation and activities when your holiday gets underway. 

Decide on how to finance it 

When you’ve put together a rough budget and have started looking at destinations, you’re now ready to think about financing your holiday. Helpfully, there are several ways to do this, including: 

• Cash savings – Some people put a little money away each year to pay for their annual holiday, which is a great way of managing your finances. 
• Credit card – If you can’t afford to pay for the flights and accommodation in one go, adding them to a credit card to pay off at a later date is another viable option.
• Holiday payment plan – When booking through a travel agent or booking site, you might be offered a holiday payment plan, which sees you paying for your trip in instalments. 
• Personal loan – Applying for an unsecured personal loan is another good way of spreading the cost of your holiday into manageable repayments.

All of the above methods are viable options when it comes to financing your holiday. At Koyo Loans, we provide unsecured personal loans of between £1,500 and £12,000 that can be used to pay for your trip. 24.9% APR Representative. 

If you’re considering a personal loan, make sure you can afford the monthly repayments. Also, it’s important to note that a personal loan should never be used to spend in excess of your means.

If you couldn’t ordinarily afford a £5,000 holiday, you shouldn’t take out a personal loan simply because you can. Rather, personal loans should be regarded as a way of spreading the cost of your holiday out over a longer period of time, saving you from having to pay for everything in one go. 

Consider activities, spending money & extras 

Financially planning for a holiday can undoubtedly be challenging, as there are so many costs to consider. Among the costs you need to budget for include: 

• Flights & transfers 
• Accommodation 
• Car hire 
• Travel insurance 
• Covid-19 tests and other vaccinations (depending on location) 
• Spending money for meals and drinks 
• Activities that you plan on doing while away 

Some people fall into the trap of paying for their flights and accommodation and worrying about paying for the rest of the trip when the holiday comes around. But as you can see, there are many other additional costs that you need to think about. So – be sure to build these into your initial budget to avoid any last-minute surprises and to guarantee your holiday is a success.

How Koyo Loans can help 

At Koyo Loans, we offer unsecured personal loans of between £1,500 and £12,000 that are ideal for paying for your holiday and the associated costs. 24.9% APR Representative. If you’re interested in applying for a personal loan to help you finance your holiday, begin with our loan calculator to discern how much you can borrow before starting the application process.