Having a holiday can be a great way to have an opportunity to relax, have some new experiences, enjoy time with friends and family and get away from normal life. There are many advantages and most people will return from a holiday feeling happy and relaxed. However, holidays have to be paid for and so it is possible that you will spend the time leading up to the holiday or the time afterwards worrying about how to pay for it. Whether you save up before or borrow the money and pay it back afterwards, it is worth thinking hard about the way that you pay for it so that it is not a stressful thing that effects your ability to enjoy the holiday or causes stress that outweighs the benefits of it.
Saving up for a holiday can mean that it is cheaper, compared to borrowing as there are no interest payments to pay and so it can seem like the best option. Financially it does make a lot of sense. However, you will have limited time to save up. You need to think about when you have to pay for the holiday and how long that gives you to save up. You will need to put money aside each month towards paying for it. This could be easy for you, if you always have money left to save at the end of the month, maybe already have some saved up and you can easily accumulate the required amount. However, if you already struggle to make ends meet and want to save up then this could be a cause of stress for you. It could be that you will be able to switch to buying cheaper things and buy less so that you can manage to save what is required.
However, you may already be trying to do this as much as possible and find that trying to do it even more is very stressful for you. You may even take on extra hours of work or earn money in your spare time but find that because that reduces your leisure time you feel like you do not get the opportunity to relax. This can be difficult as then you really need the holiday to get over that stress and it may limit your ability to actually enjoy yourself.
Getting a loan for a holiday may therefore seem like a better alternative in some cases. It means that you do not have to put pressure on yourself to get all of the money saved up before you go and you can have a more relaxed time leading up to the holiday. This could mean that you have more of an opportunity to enjoy the holiday and have fun while you are there. Of course, if you borrow the money, you will have to pay it back. Depending on how you choose to borrow it, you will need to think about how you will pay it back. Some loans have a regular repayment schedule and you will be expected to make a fixed repayment each month. Others, such as credit cards, will be more flexible and you will only be expected to repay a very small amount, usually just the interest and you can pay back the full amount when you want to. The thing with all borrowing is that you have to repay it all eventually and it is a good idea to think about how you will manage these repayments. If they are regular ones, then you need to think about this before taking out the loan. Consider how you will find the extra money required each month to be able to make the necessary repayments. You may be okay with the amount of money you normally have left each month, but it is good to look at your bank account and back over your statements to make sure that you are confident that you will be able to afford them. Think about what you might have to cut back on and whether you will be able to sustain this for the duration of the loan. If you do not have a regular repayment schedule, then you could end up delaying repaying the loan. This may be a source of stress to you, if you keep thinking about that debt. However, even if it is not, when you want to borrow more money, perhaps for a holiday the following year, you could find yourself in difficulties because you may not be able to borrow any more money.