Are Holiday Loans A Good Idea? Tips To Plan For Christmas!

A Christmas tree with luggage placed around it.

22 Nov Are Holiday Loans A Good Idea? Tips To Plan For Christmas!

Planning a Christmas getaway, but struggling to save up the cash? Using holiday loans to help pay for your holiday and travel-related expenses can be a smart financial move. To help you decide if holiday loans are right for you, find out what holiday loans are, what expenses they cover, and get our top tips for planning the finances for your Christmas getaway.

What are holiday loans?

A holiday loan is a type of personal loan specifically designed to cover holiday-related expenses. It allows you to borrow an amount of money to pay for your holiday, whether that’s for flights, accommodation, gifts, or other holiday-related costs. Holiday loans through Max Loans can be either a secured loan or an unsecured loan, usually with fixed interest rates and terms that make it easier to plan your repayments.

Holiday loans can be used to pay for almost anything travel-related, from flights and accommodation, to meals, sightseeing, travel insurance, even spending money. What’s more, this type of loan can be used for any type of holiday, from an overseas adventure with the kids to a campervan road trip right here in New Zealand.

Why use holiday loans?

Using holiday loans lets you book your holiday when you’re ready to book instead of having to wait until you’ve saved up enough. So you can get in on all the best deals and early bird discounts, and avoid having to use costly alternatives like credit cards or high-interest loans.

Other reasons why Kiwis choose holiday loans:

  • Access to funds quickly and easily: Once your loan application is approved, the funds are transferred directly to your bank account, so you can start using the money as soon as it lands in your account.
  • Lower interest rates compared to credit cards: Holiday loans typically carry lower interest rates compared to credit cards, making them a smarter financial choice when it comes to paying for holiday expenses.
  • A structured repayment plan: Your repayments are locked in for the term of your holiday loan, making it easier to budget and avoiding any increases in interest rates.

Top tips for reducing holiday financial stress

With the Christmas holiday season fast approaching, many Kiwis may be concerned about holiday spending. To help reduce holiday financial stress, here are some helpful tips:

  • Set a budget. Decide on your holiday spending plan by working out how much you can afford to spend and where that money needs to go.
  • Start early. Begin setting aside money specifically for holiday expenses well in advance. Even small, regular contributions can add up over time.
  • Plan ahead. Booking flights, accommodation, and activities well in advance can often lead to significant savings with early bird discounts. Early planning also ensures you get the best deals and don’t miss out on availability.
  • Compare prices. Before making any bookings, compare prices from different vendors using online platforms. This simple step can help you find the best deals and stretch your holiday budget further.
  • Use rewards and points. If you’ve accrued travel rewards or loyalty points, consider using them to offset some of your holiday expenses to significantly reduce the overall cost of your trip.
  • Share the costs. Splitting expenses such as accommodation, transport, and meals with friends and family can help reduce individual costs.
  • Keep it local. Make your budget go further by staying closer to home and exploring your own backyard. A Kiwi road trip or a motorhome holiday can be the ideal affordable getaway.

Are holiday loans right for you?

Holiday loans can be a valuable financial tool that help make your holiday dreams a reality. By understanding what holiday loans are, what they cover, and by following some helpful financial tips, you can ensure your holiday season is filled with fun without the unnecessary financial stress.

If you’re considering applying for holiday loans, or you’d like advice to help you decide if holiday loans are right for you, talk to a Max Loans’ Personal Lending Adviser for your NZ loan needs.

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