Anyone treating themselves to a vacation should keep a close eye on the costs. Especially for families, the vacation is important. Parents relax and gather new strength for the time at home while the children burn off energy playing or romping with other kids. Many Germans afford a holiday by saving up for it all year. They book their trip at a travel agency or online and pay for it by direct debit. In the unfortunate case, however, the holidaymaker may overdraw their account for weeks or months and sometimes pay high interest charges as a result. A travel loan can provide relief here and keeps costs low, even for families with children. There is a wide range of lending institutions where such a loan can be taken out both locally and over the internet. Another option would be to agree on an installment payment directly with the tour operator.
The installment loan taken out at lending institutions is a good option here. Simply choose the desired destination and have the costs for flight and accommodation calculated precisely. You should also factor in additional funds for excursions, meals and shopping trips on vacation. This calculation forms the basis for financing the travel loan. In addition, lenders will insist on the existence of collateral. This so‑called creditworthiness can be verified in various ways. German lenders are, among other things, required to perform a SCHUFA check. Foreign lenders, for example from Switzerland, may waive this but will request other proofs instead, such as proof of secure income. Special attention must be paid to the interest rate on a travel loan, as this, like with any loan, increases the actual cost. Interest rates and repayment amounts vary considerably depending on the provider. You can enquire with local providers or on the internet, or obtain information from a comparison portal. In general, however, the contractually agreed interest rate for a travel loan is always cheaper than an overdrawn account; overdraft rates can be as high as around 13%. Loan approval is handled in the same way as for other loans. Copies of payslips are required and, if you do not take out the loan with your house bank, a bank statement. In addition, collateral is often required, for example a life insurance policy. Travel documents do not have to be presented to the lender, but an invoice for costs would be useful to easily calculate the loan amount. The loan term should also be considered. As a rule, a loan for an item should be repaid within the period corresponding to the useful life of that item. This indicator does not apply to a travel loan. You could consider how much you can afford to repay monthly for the travel loan or how long the recuperation might last. If possible, this loan should be repaid as quickly as possible; a one‑year term should be sufficient. Online loans are particularly suitable for last‑minute offers, as you have the advantage of receiving a quick loan commitment and can promptly accept the last‑minute offer. Direct travel loans can be found online and are often offered by direct banks. And at MAXDA you can also make a free inquiry. As an independent broker, MAXDA searches among various loan offers to find the right one for you: one inquiry at MAXDA and you will receive the best offer from many different banks.
Installment payment of the trip with the tour operator
Many tour operators also allow you to finance your trip and pay in monthly instalments. Careful checking of the terms and conditions is essential here. There are significant variations here as well, so a travel loan can sometimes be cheaper. The tour operator will also thoroughly check the holidaymaker’s creditworthiness before agreeing to instalment payments, because the operator must also be assured of a 100 percent repayment. The documents you need here are also copies of your monthly payslips. Collateral usually does not have to be provided to the tour operator itself; however, if the operator works with a lending institution, that institution may require collateral. Instalments are generally due one month after the start of the trip. If you choose to finance your trip through the tour operator, you should have saved the money you will need during your stay at the destination. With the operator you can only finance the costs of the trip itself, not additional funds you need while on holiday. Even when paying in instalments via the tour operator, attention should be paid to a short term; this also keeps costs low and restores financial independence faster. Assuming you usually go on holiday every other year, you can conveniently finance the next trip again with a travel loan or via the operator. You might even manage to save a little money to borrow less in the future. Whatever option you choose to take out the travel loan, careful checking of the terms is particularly important here and will save you real money. Obtaining enough offers and calculating precisely what can be afforded, which destination you can afford, is of greatest importance. First the amount that can be paid monthly in instalments within a year must be determined. Only then can you think about where you would like to go and how much extra money you want to borrow for food and shopping at the destination. A travel loan from a lending institution is worthwhile in any case: the cheaper the agreed interest rate and thus the travel loan, the more money remains available for the holiday fund.