Summer holidays are approaching with great strides. More and more Swedes are now choosing to finance this summer’s long-awaited holiday with the help of loans and credits. In fact, as many as 15% of Swedes will probably pay their travel on credit this summer. This can of course be a good alternative if you want some extra holiday money, but it can also lead straight down into a deep debt trap. If you are not careful, that is.
In other words, it is possible to get some extra money in your pocket while keeping you at a long distance from deep debt swamps. Does this sound interesting? Then you should definitely read on. Harry Costrop obviously wants everyone to have the opportunity to enjoy a wonderful and relaxing holiday this summer. What we do not want is people to be indebted for a little enjoyment of life.
Watch out for sms
If you want to finance your upcoming vacation with a loan or credit, there are some things to keep in mind. First and foremost, you should avoid sms loans, as interest rates can be quite high. However, if you have calculated your finances and feel that you can afford to pay back a little more, of course a sms loan can be a good alternative. If you are able to repay the loan within a month, an interest-free loan can be a very advantageous option.
In addition, there are still larger sms loans with slightly longer maturities, if you want to be on the safe side when it comes to repayment. However, keep in mind that a longer maturity means a more expensive loan due to interest costs.
Best option for a loan funded holiday
However, the most advantageous option when it comes to loan financing their holidays is credit cards that include a number of interest-free days. As long as you can pay within these interest-free days, your bill doesn’t have to be very expensive. Just remember to plan your expenses carefully so that you can actually handle the repayment. This is especially important if you travel at the end of the summer as August is usually a poor month for many Swedes.
You can also find credit cards that give you several benefits in connection with the trip. Namely, there are credit cards containing travel insurance, which reimburse costs for, for example, medical care, sudden cancellation, delayed arrival and delayed luggage. In addition, you can avoid paying fees when using the card abroad, which can also be advantageous.
Invest on the savings
A 2013 study showed that as many as 17% of Swedes have borrowed money before their trip. That said, you can afford to borrow money, of course, you can do that. However, if you have a somewhat shaky economy, you should avoid borrowing for fun, however tempting it may be. It is important to remember that you will always have to stand for the bill in the end.
If you have a shaky economy, you should invest in saving money for the summer vacation instead. After all, this is by far the safest and most inexpensive alternative in many ways. If you can’t manage to save a reasonable sum for a trip, maybe you can invest in a little more expensive trip next summer? Or why not save and travel away during Sweden’s coldest winter months instead? However, think carefully before choosing to book a trip for money that is not yours.
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