Financing Your Travel – The Smart Way

By Sanesh Mathew | July 28, 2017

Financing Your Travel – The Smart Way

Do you often find yourself complaining about being exhausted? Are you tired and frustrated of working long hours at your office? Have you just had a breakup? If any of the above applies to your situation, then you need a vacation, buddy!

Taking time-off during stressful situations is good for your mental and physical health. Oh, and you really don’t need a reason to take a vacation. You just need to get your finances in place, pack your bags and just go wherever it is that you want to go.

Additional Reading: How To Make Your Dream Vacation A Reality

Most people give up on their vacation plans because they don’t have sufficient money to finance it. But money shouldn’t be a reason to scrub your vacation plan, right? We mean to say that there are quite a few means available to finance your travel like using your Credit Card, taking a loan against your securities, or even opening a Fixed Deposit (although you’ll have to wait a while).

Some people even opt for a Personal Loan (or a Travel Loan) to finance their travel. But we don’t think it’s a good idea!

What are the best alternatives to finance your travel?

For starters, it’s always best that you save up for your vacation. You could open a Fixed Deposit or a Liquid Fund to stash away a substantial amount every month. But, of course, it will take a few months to accumulate enough funds. So, if you’re desperate to go on a vacation, here are two pretty decent alternatives:

Credit Card – Sounds like a good idea, doesn’t it? A Credit Card is a great financial tool that can help fund your travel, although it depends on your credit limit. You can, however, charge at least a part of your travel to your Credit Card (like the tickets or the accommodation or the miscellaneous expenses).

But keep in mind that charging for food, shopping, etc. in an overseas location can attract additional charges to your card. If you plan on financing your vacation on your card, don’t forget to convert your expenses into easily-payable EMIs. Cool?

Additional Reading: Financing Your Vacation Using Your Credit Card – Good Or Bad?

Loan Against Your Securities – How about this for financing your travel? By securities, we’re referring to Mutual Funds or stocks that you hold. A loan taken against your securities usually involves low-interest rates compared to other loan options. If you have enough long-term investments in your portfolio to use as collateral, you can opt for a loan against securities to fund your travel.

Anyway, we would recommend that you plan your travel early and accumulate enough funds to finance your vacation. However, if you are short of cash and you really want the vacation, then you can opt for any of the above-mentioned financing options. We have a host of travel Credit Cards for you to explore.

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Category: Credit Cards Travel
Sanesh Mathew

About Sanesh Mathew

A talkative sleepyhead, Sanesh, enjoys watching horror movies, listening to music, reading all things related to personal finance and wandering aimlessly (walking meditation, he calls it!). He refers to himself as a 'simple human being with a rather chaotic mind'.

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