Feeling positive about opting for pay monthly holidays but still want to keep your options open?
Well, you’ve come to the right place!
What Are Pay Monthly Holidays?
As the name suggests, pay monthly holidays is a type of holiday finance which gives you the freedom to go on holiday, without being able to afford it all in one go. Essentially, it is an unsecured loan that allows you to borrow money and spread the cost over several months.
How Do Pay Monthly Holidays Work?
It is super quick and easy to apply for monthly pay holidays!
All you have to do is follow these 3 simple steps:
- Go on the company website and browse what holiday packages are available.
- Fill out the relevant information and book your preferred choice (including flights, accommodation, insurance, etc).
- Repay your loan in one go or spread the cost over several months.
Whilst there are great benefits of monthly pay holidays, there are several alternatives that may be a better fit for you and your financial needs.
1. Holiday Loans
Holiday loans are an extremely popular alternative amongst holiday goers, as it is specifically designed to cover holiday finance.
The lender is unable to control what type of holiday you use it for, and on what. Therefore, you are given the freedom to use the loan for whatever you want - the power is in your hands!
In other words, if you want to go home for Christmas, or enjoy that gap year you have been day-dreaming about, you can – it’s completely up to you!
2. Payday Loans
Need to borrow a small amount of money quickly?
Well then, a payday loan may be the ideal solution for you.
Payday loans are essentially short-term loans designed to support those who are in need of a little cash influx to see them through until their next pay day.
Whilst this may seem like the best idea, just be aware that they come with a very high interest rate. And yes, though they are one of the most accessible loans, some payday loans require you to pay the total sum of your loan in one payment.
Payday loans are a suitable option if you need to borrow a small amount of money in a rush, and if you are not too fussed about the high interest rates.
3. Doorstep Loans
Are you looking for a loan that requires little to no effort at all?
Look no further…
A doorstep loan, also known as a home credit loan, literally gets delivered to your doorstep!
That’s not all…
Someone also delivers you the application and collects the repayments.
This type of loan is particularly popular with those who have a poor credit history, as well as those who have no assets to their name to apply for a secured loan.
However, doorstep loans are not without their drawbacks…
Because this type of loan is easily accessible to those with a bad credit rating, you are unable to borrow large amounts of money. As well as this, the interest rate will be a lot higher than other traditional loans. Because the lender is taking a risk, they have to take certain measures to protect themselves.
4. Secured Loans
Are you planning on booking an expensive holiday and looking for the best low-interest option?
Secured loans tend to be the most common for those with the above criteria.
They do, however, insist that you are a house owner or a mortgage holder. This is so you have an asset to provide against the loan. This is also what makes it a ‘secured’ loan, as well as a low-interest option.
The possibility of losing your home if you fail to repay your loan is a major disadvantage of secured loans. You just have to assess the likelihood of you paying off your loan in time and ultimately, if the loan is worthwhile for you.
5. Guarantor Loans
This is a type of unsecured loan that requires another person to consent to co-signing the loan with you. Put simply, they will have to take financial responsibility in the case of your non-payment.
This comes across as quite an attractive option – with it being convenient and practical. However, since it is quite a vulnerable position to put someone in, it may be quite difficult finding someone who is willing to be your guarantor.
6. Credit Cards
Everyone knows what a credit card is but if you have never used one, the concept can seem quite intimidating.
However, they are actually one of the quickest and easiest alternatives to applying for a loan.
Much like a loan, credit cards allow you to spend money that you don’t theoretically own. The bank of your choosing will provide you with a credit limit, and you will be required to pay off the minimum of your debt every month.
If you do manage to pay off your minimum repayment, then you will avoid having to pay interest. However, if you are unable to do so, you can expect there to be a lovely little interest fee waiting for you.
The amount of interest that you will be charged is completely dependent on your credit card provider, as well as your credit score. This is why credit cards are popular amongst those with an attractive credit rating. If your credit is good enough you may be able to score yourself a 0% interest promotional offer!
Credit cards can be one of the most expensive forms of borrowing money for those with poor credit.
Credit cards tend to be a better option for those who are looking for a regular cash influx and who are interested in borrowing small amounts. They would also be a good alternative for those who are looking for a bit more flexibility in repayment.
Congratulations! You are now an expert on different types of holiday finance!
So what’s it going to be – monthly pay holidays or one of the above?