Holidays and Debt

June 26, 2018 10:00 am Published by Debt Free Life

For people under severe financial strain, there are two particularly problematic times during the year. One, of course, is Christmas when we are expected to make our already tight budgets stretch to accommodate presents for our family, kids, and friends. The other, however, is Summer.

Everyone loves going on holiday. In fact, the average UK worker spends around a quarter of his or her disposable income on exploring the world and chasing the sun. However, a slow economic era means that many of us are having to borrow to consider going away at all.

A leading building society in the UK has estimated that around 22% of holiday-goers leaving the UK have borrowed money in order to get away. This is understandable, especially when you are in debt and need an escape, but when you have a low income, it often is not at all sustainable.

Tips for Going on Holiday When Money Is Tight

There are three important steps to consider when you are struggling with finances but fancy a holiday:

  • Save up money beforehand
  • Don’t aim for annual holidays
  • Shop around for the best deals and prices

Tips for Going on Holiday When Money Is Tight

Save

To get away while money is tight, it is best to be patient and save money beforehand rather than borrowing. By borrowing, you are taking on a debt which may be problematic in the long-term. You might be able to afford the debt before going away, but circumstances might change, making you unable to pay off what you borrowed.

Naturally, saving requires patience, and it may take a long time to save for a holiday before you actually go away. However, this leads us to our next point…

Go Away Every Second or Third Year

While it is difficult because having troubled finances can make a holiday a temptation that is difficult to ignore, it might just not be financially sound to go away every year. By skipping a year you can give yourself much more time to pay back borrowed money from the year before or to save up for the next one.

For a family of four, a holiday costs on average £3,420. Can your budget accommodate this amount of money every year? If the answer is no, it is time to cut back.

Shop Around!

Relying on a travel agent can be an expensive way to go abroad. It is often cheaper to find flights and accommodation yourself in order to find the very best price possible. This also gives you much more freedom to choose precisely where you want to go and where you want to stay!

With price comparison websites like Sky Scanner, and accommodation websites like Booking.com and Airbnb, it has never been easier to save money when booking a holiday.

Struggling to Pay Back Holiday Loans?

If you have borrowed money to go on holiday and are struggling to pay it back, we can help. We provide a variety of formal and informal debt solutions which can help you to beat the creditors and get back on top of your finances. If you have taken out any of the following debts to pay for your holiday, we may be able to help:

  • Credit Card Debt: It can be tempting to pay for a holiday using a credit card, to pay it off over the following months and years. Unless you are 100% sure that you can make the subsequent payments, then this is financially very risky. However, as an unsecured debt, it can be covered by our debt solutions.
  • Bank Loan: Many people also opt to pay for a holiday using a bank loan, but then circumstances change, and they can no longer meet the repayments. This is a difficult situation and will quickly get out of hand. Luckily, this is also an unsecured loan, meaning again it can be included in a debt solution.
  • Payday Loans: Again, this can be a tempting but dangerous option for jet-setters due to the quick turnaround and ease of access with regards to payday loans. While new legislation has somewhat limited what these companies can do, they still have massive potential to be financially crippling. However, as an unsecured debt, a formal solution could be the answer.

Struggling to Pay Back Holiday Loans?

However, these are just a few of the many debts that we can help with. To learn more about different types of debts, get in contact with us today.

How Can Formal Solutions Help?

Formal solutions can help in numerous ways. For a start, they will put an end to creditor harassment as they legally prohibit your lenders from getting in contact with you in any way. They have to contact us, your insolvency practitioner, who can relay anything vital to you annually.

Furthermore, they can convert your multiple unmanageable payments into one single reduced monthly payment. This not only makes the repayment process more straightforward but also significantly cheaper.

Lastly, formal solutions like a Trust Deed or IVA are fixed term plans. At the end of the agreed period, all remaining debt which you have not yet been able to pay back will be written off entirely. This means you may end up only paying back a fraction of what you owe.

Get in Touch Today!

If you are in a constant struggle to keep your finances in order and are being continuously chased by creditors, it is time to make a change. By getting in touch with our advisers, we can begin the process of coming up with a bespoke plan to steer you back into the clear. Not only will creditors be prohibited from contacting you, but your monthly repayment bills will be significantly reduced.

Whether you need to clear up holiday debt or get your finances back in order to book one, to speak to a friendly adviser immediately, give us a call on 0800 808 5124.

If it would prefer we got in contact with you, fill in our debt calculator (it only takes a minute!), and one of our team will give you a call at a time that suits you.

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