You’ve just had the holiday of a lifetime with your family which you part-paid for with a loan and already you’re thinking about next year’s break.
Having considered the pros and cons of a short-term loan, have you decided that you will do the same again even though the last payment for last year’s holiday has just been made. Is this really a sensible way forward?
These are just five suggestions to help you to repay that holiday loan.
- Re-evaluate – don’t let short-term borrowing become a habit.
- Keep an eye on your spending and income on a regular basis and look for savings.
- Save up for holidays – if this is impossible, then ask yourself is it really affordable?
- Make sure that whatever your family spends leaves you with some money left over every month.
- Treat short-term loans as the last resort rather than the first port of call
Re-evaluate: is this a one-off or a way of life?
Anyone wishing to buy a house is likely to need a mortgage. Beyond this, how much money you borrow and for what purpose is under more your control. There are times, especially in emergencies when smaller amounts of money need to be borrowed. It could be:
- The central heating boiler has just broken down and it’s the middle of winter.
- The car has broken down and you need to get to work and take the kids to school.
- Unexpected funeral expenses.
- Your boss hasn’t paid your wages on time because there is a problem with the company’s cash flow.
There are advantages and disadvantages to borrowing money on a short-term loan basis.
- Short-term loans mean that people can borrow between £80 and £2,000 paying back every month over a period of 2 to 12 months.
- You know how much you are borrowing and you know how much you need to find each month to repay the loan.
- The loan can be approved in minutes especially if the application is made online.
- You know that the lenders we introduce you to are regulated by the Financial Conduct Authority and this affords you a degree of protection.
How can you make changes?
Yes – it is easier to say that it is to do. But consider this; you have already been paying an additional amount every month in interest for the family holiday loan. The only difference is you have been paying this after the fact. This means you could be saving this amount every month for yourself and earning interest.
So how can you make changes? There are two things you can do,
- Find ways to earn more, and
- Find ways to spend less.
Monitor your expenditure
- Household bills – when did you last change your energy supplier? You could be saving hundreds of pounds every year if you switch and more if you pay by direct debit.
- Rent or mortgage payments – have you considered moving your mortgage to another company? If you are renting your property, you could ask your landlord for a discount.
- Credit repayments – many customers move their credit card accounts or take out a new card from to suppliers offering 0% on balances for an extended period of time.
- Groceries – compare prices for the weekly shop and take advantage of discounts, loyalty points, and coupons.
- Don’t forget to use reputable price comparison websites for a cheaper car and home insurance.
- Before you purchase anything from the shops why not check out Amazon and eBay? Take into account delivery charges if there are any and see if you can make savings.
- Childcare costs and benefits – are you taking advantage of any benefits you are entitled to? Are you also claiming government help available to parents?
Re-evaluate your income
Having looked at your spending, you can now carry out a similar analysis on your earnings.
- Ask your boss for additional hours or a wage increase – not always a popular idea but one worth considering especially if you have taken on additional responsibilities in your work.
- Work extra hours in the gig economy – if you have a car or a motorbike, you could work for Uber, Deliveroo or Just Eat. You get paid by delivery and the money soon mounts up.
- Have you considered freelance work? Check Google for freelance work available in your area.
Save up for holidays
It may be that you have decided to use all or some of the suggestions above. You can now sit back and count up any savings you have made. Make sure you put this money to one side so it is available to you when the time comes for booking the next holiday.
Keep an eye on the expenditure
Having saved money in one area, it is all too easy to find something else to spend the surplus cash on. It is important that you don’t undo all your good work by taking on an extra financial commitment. Make sure that, whatever your family spends, there is always something left over.
Holiday loans the UK
Even though you might decide to implement some or all of the ideas above, there can always be that one unforeseen situation and you really do need to borrow a small amount of money very quickly. It may be that you take many of the steps we recommend and you still need to raise a small amount via a holiday loan online.
You could consider using a direct lender where you borrow money from that company and pay them back. Or you could use a broker such as Oyster Loan – we scour the market for the very best deal available to you specifically. Oyster Loan will match you up with different lenders and then show you the cheapest loan offer that we have found.
You then choose whether you want to borrow money from the lender that has been recommended – it’s that simple and it all happens in seconds.
The holiday loans online service at Oyster Loan is free and there is no obligation is all new to accept the offer that they have found for you.