Yea or Nay: Should You Take Out a Loan for Vacation?

The kids are out of school and all you want to do is take them on a vacation to bask in the warm summer glow. If, for whatever reason, you did not save for your summer vacation this year, there are options to ensure you can still enjoy a break from your busy work schedule.

In our still-sluggish economy, people are relying on personal loans for their big expenses, and vacations are no exception. A vacation loan may be an option for you this year. What borrowers must consider before acquiring a loan is their financial standing. Given your personal finances, ask yourself: Is a weeklong vacation really worth the debt and interest?

At Valley Federal Credit Union, we offer Signature Loans with an APR as low as 10.9%. Find out more about what we can do for you.

Yea: Opportunity to Build Your Credit

If all of your finances are in check and you want to avoid racking up your credit card bill, taking out a loan and then paying it off on time can really boost your credit score. Your best bet is shopping around for a good, low-interest loan.

Since personal loans tend to have higher interest rates than secured ones, make sure you get a great deal from a trusted financial institution like ours. Remember, a loan should not be taken out if you believe you cannot pay it back within the time allotted or before. Consider taking out a personal loan as an opportunity to build credit when big purchases are looming.

Nay: Living Beyond Your Means

The last thing you want to do is take out a loan with high interest if you’re not able to pay it back in full in a relatively short amount of time. After all, you don’t want to come home to a stressful financial situation after a relaxing vacation. Paying off loan debt on top of your current debt means you’ll likely have to sacrifice plenty of vacations. Is it worth the sacrifice?

Ultimately, the decision is yours. Consider planning a vacation at a future date and save while paying off current debt. When you finally get to enjoy your break, you’ll have a more stress-free vacation knowing your finances are in check.