Personal Loan For Vacation: Merits And Demerits
BANGALORE: The immediate urgent need for money irrespective of the occasion can be solicited with a personal loan from any authorized bank. At the minimum of documents you get the money and sign a bond of repaying a much higher interest rate. This quickly accessible money can be used for any purpose like medication, marriage, house renovation, accident and more. So, at the end the decision of a personal loan has its own merits and demerits.
Yet, the demand for home loans never goes down. In fact, researches show almost 20pct hike in the rate of borrowing from the bank for personal trips and vacations.
As the Economic Times reports, it really ‘does not make sense’ to opt for such a loan. Just for a 3-10day personal gratification of desire or wish or just to experience a difference he needs to continue pay back 14-23pct extra interest for the next two years or more. Hence, the one decision of personal loan for a vacation implies a continuous debt for the next two or three years and may be, one cannot plan a trip in the loan return phase too.
Now no trip can ever confine to the loan amount. Expenses increase and finally, tourists at the height of their spree end in swiping their credit cards more than the number of times they remember. Now one or two small swipes transacted over credit card is not an issue. But if the number of times or amounts involved continue to rise, then it can be difficult to handle both loan EMI plus credit card returns.
When your payments for the personal loan continue, it might turn difficult for you to get any other loan sanctioned at the worst of crisis. Poor credit rating also hampers the scope of getting loans.
Wondering, then how to be a part for all your major tour plans?
The remedy is simple, plan beforehand and save extensively before you fix the dates. Going for a trip and ending in a burden makes no sense. So pamper the Columbus in you by preplanning and finally going on board. Vacations are meant to create happy memories. A burdened vacation can end upto to be a lifelong challenge.
So, be careful before you avail the next personal loan for tours and vacation.
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