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Borrowing For A Holiday?

Borrowing For A Holiday?

Category: Loans

Updated: 31/10/2008
First Published: 04/05/2005

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The holiday season is fast approaching. Some of us may have saved for a break away from it all but many of us will be relying on credit to get us to far off shores.

There is nothing wrong with borrowing for some time away but it is vital that we ensure we are getting a good deal. For instance, if consumers are considering paying for their holiday on their credit card, hundreds of pounds can be saved by ensuring they have a competitive product. Recent Moneyfacts.co.uk consumer surveys showed that 56% of consumers are not on a 0% deal and that 53% do not pay off their credit card in full each month. These figures highlight the importance of shopping around. Rates for purchases on credit cards vary from 0% to over 20%.

Looking at unsecured personal loans of £2,000 over two years, many lenders are offering loans with monthly repayments of over £100pm without insurance and £115 with. Using the loans search on Moneyfacts.co.uk shows that monthly repayments of under £90 and £100 respectively can be obtained. This is a saving of £240 without insurance and £360 with.

Emma Butler, Web Editor says, “We all look forward to our holidays and with the pressures of everyday life many of us need one! With over 50 card deals available at 0% for purchases there is little excuse for consumers not getting a good deal. The loans market is at the most competitive it has been. A recent Moneyfacts.co.uk user survey showed that 38% of consumers took out their personal loan with their existing bank. Some of these may have got a good deal but by shopping around consumers can make substantial savings.”

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

 
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