Is it better to save or book your dream holiday now?

Mums Tips

Travel with kids

Published on Tuesday, 10 December 2019 08:15

Last Updated on 03 March 2021

Monica Costa

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Are you planning a fantastic holiday of fun in the sun? Alternatively, you might be considering booking a late trip to Lapland this festive season. If so, you need to think about how you’re going to pay for it. There are two main options here. You can either borrow and buy now or save and go at a later date. So, let’s explore the benefits and weaknesses of both possibilities to find the right choice for you. 

You Could Put It Off Forever

One of the issues with waiting and saving for a holiday is that you can put it off indefinitely. The problem with delaying a holiday is there will always be something else that could take priority over a much-needed vacation. This could be anything from a home upgrade to a big car repair. 

The benefit of buying now is that you don’t give yourself that opportunity. You book the holiday, you go and you enjoy yourself. However, this does bring one problem. 

 

Paying When You Return 

If you’re going to borrow, you have to be prepared to pay when you return home. This can be a problem because it means that you’ll be saving to pay for a vacation that you have already enjoyed. It can be frustrating when you’re paying for last year’s holiday while other people are already planning their next vacation and getting the money ready. As such, you do need to have the right mindset. 

 

Don’t Miss A Great Deal

Another big advantage of going now is that you could make sure that you don’t miss a great deal. Every year, there are fantastic offers and exciting holidays available that you definitely do not want to miss.

You could actually save more if you book a holiday like this now rather than saving and paying when it’s a significantly higher cost. 

For instance, you could be planning on going to Disney. They have deals on a year before. The benefit of this is that you can borrow to pay the deposit. You can then pay off the rest later and still get a great deal. This helps you avoid the issue of needing to pay for a holiday once you return as well. 

 

Avoid The Stress

Saving for a holiday really can ruin the excitement and joy of knowing that a vacation is on the horizon. If you borrow money, you won’t have this issue at all. You won’t have to deal with the stress of wondering whether you’re going to be able to afford it. The holiday will already have been paid for. 

 

Improve Your Credit Rating 

Finally, if you do borrow, you will be able to improve your credit rating as well. When you borrow and pay back on time, your rating rises. This makes it easier to get loans in the future. You just need to make sure that you choose a loan that you can afford. Make sure that you are comfortable with the interest rate and always check for any hidden costs too.