Tips for enjoying a budget vacation | Business

If you’re dreaming of a summer getaway, you’re not alone. However, the higher prices are causing many people to rethink their vacation plans.

According to a recent survey by Bankrate.com69% of adults who say they will take a vacation this summer plan to change their travel plans as prices have reached record highs.

It’s always important to evaluate your financing options to keep your summer fun affordable, but this year looking for the best loan option may be even more important.

Here are some tips to help you free up some cash or fund a fun, yet affordable vacation:

1. If you’re a homeowner, consider growing your capital. Using a home equity loan or home equity line of credit, commonly known as a HELOC, can be the most affordable financing option for big purchases like a dream vacation or big home renovations like a new pool or recreation room. It can also be a great way to consolidate multiple higher rate debts to free up money each month by lowering your overall monthly payments.

2. Consider options closer to home. Whether it’s enjoying your own backyard with a staycation or opting for a budget-friendly getaway to one of Kentucky’s 31 beautiful state park campgrounds or other must-see campsites running out, relaxing and recharging doesn’t have to cost a fortune. If you need extra cash for small purchases, a low-interest personal loan may be the right option for you because it offers fixed payments for a fixed term.

3. Look for rewards programs that fit your lifestyle. Credit cards can be a convenient and rewarding way to pay for vacation expenses or daily necessities, just be sure to look very closely at your interest rate and any cash advances or other fees. With prices rising, now is also a great time to consider rewards programs that offer automatic cash back on gas and other essentials.

No matter where your summer vacation takes you, it’s important to understand your financing options if extra cash is needed. Here are some key questions to ask about any loan:

What is the interest rate you will be charged?

Is the interest rate fixed or revisable?

How long is your loan — repayment term?

What is the total monthly payment?

Is additional insurance required? What will those monthly expenses look like?

Are there any upfront or out-of-pocket fees?

Are additional fees included in the loan amount?

Are there any prepayment penalties, annual fees, or other important details to note?

Free online calculators can help you estimate your monthly payments and explore your options, but you may also want to speak with a knowledgeable representative to find out what type of loan is best for your specific situation.

Spending a little time evaluating your financing options now can make a big difference in the cost of those summer plans over time.

Wishing you a fun, relaxing and affordable holiday season.

Charles Eads is director of loans for Abound Credit Union.

Charles Eads is director of loans for Abound Credit Union.

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