Payday holiday?

Do I use a payday loan, credit card or other loan to pay for my holiday?

It’s that time of year and most people are talking about where their annual holiday will take them. You find you are dreaming of sea and sand, family and friends, and that much needed rest and relaxation. You are rudely awakened by the hollow echo of your savings account and the rustle of those window envelopes shouting at you to pay your loans and credit cards. What to do?

You could put your holiday on your credit card, and just compound that problem. You could take out a short term loan and try not to look at the eye-watering interest rate. You could visit a payday lender but is this truly ideal? You will end up doubling or tripling the cost of your holiday if you can’t pay it back in full as soon as you return from the paradise. It might be a good idea to try and save up for the holiday instead of paying it off. Here are a few tips to get you started.

First off to save for a holiday it is a good idea to have a place to put your savings. Whether that is a glass jar in the kitchen or a new savings account at the building society on the high street. The next step is to name you goal. Give your holiday a name and apply it to the savings stash so you have something to focus on. Now you need to sit down and figure out how much you want to commit to putting into the fund every month. It is a good idea to decide on an amount, almost so you can treat the payment like a bill rather than just wait to see how much you have left over at the end of the month and deposit that. You have a better chance of attaining your goal. Then you begin to save, there is no time like the present.

There are a host of ways to eliminate small things from your everyday to free up some extra dosh for your holiday fund. Make a packed lunch for school or work. Recycle water bottles so you don’t have to buy new ones. Visit at friends houses or have friends over instead of eating in a restaurant. Cook your meals instead of eating take-out. Walk to your destination instead of driving if it is not too far. Enjoy ‘free’ entertainment like parks, museums, or the library instead of movies and other expensive activities. Decide on a clothing budget and then cut it in half. A bikini isn’t very expensive! Pick a month of ‘detox’ and don’t spend on anything that isn’t absolutely necessary. January is ideal for this.

Once you are in the swing of things on the savings front you can now begin to see how you can shave as much off of your holiday as possible without taking any of the fun out of it. Get onto the right websites to find extra cheap flights. Look into cheap hotels, or secret bargains at 5 star hotels, as well as fun and cheery backpackers depending on where you are going. Package holidays are often a much better deal than doing it on your own. Change you currency when you get there. And then the even smaller: take your own food on the plane instead of buying it. Don’t buy stuff at the airport. Turn off your heat and gas before you leave. Make sure your phone hasn’t automatically switched to data roaming. Poke every nook and cranny looking for that pound to save and donate to the holiday fund.

Are you beginning to get the picture? Because one picture you don’t want to be in is the one of you, your suntan and a payday loan that just doubled itself.