Nowadays, it is still a rule that a foreign holiday by the sea as far as possible from our republic is a sign of good standing in society, among friends, neighbors and relatives. So many people do not hesitate to indebt for a few years because of this “prestige”. He does not think that they will have to repay the ten-day luxury and rest hard for at least another year.
It is customary for some people to borrow on holiday even repeatedly. I guess you can figure out what the consequences are. If these people do not manage to repay the loan in a year, they will repay themselves to dizzying heights, which they will not be able to repay.
Vacation loan – people in the Czech Republic borrow more and more
Above all people with low incomes get a vacation loan they take a longer period of time to commit part of their finances for a year, two or more. Along with housing loans or rentals, energy costs, telephone, internet and overdraft or credit card receivables, they can easily face repayment problems over time. From there, there is only a short way to a vicious circle of debts where one claim is paid by another and may even end in execution.
Trailers for tempting exotic holidays or sightseeing tours look out everywhere in summer and avoid them is almost impossible. Same pictures from our friends’ holidays on social networks. And sometimes it is difficult to resist. But borrowing a holiday for a family of four already means repaying the loan by a lot of thousands. And we need to think about it properly. For example, would you not like money for interest in the fall for a new refrigerator that is already out of service?
Borrowed on vacation – do they regret it?
Thirty-year-old Zuzana likes traveling from Prague. He often puts his savings into foreign holidays. A few years ago, however, she could not afford the trip financially, so she borrowed it. “At a time when I had no money saved, I borrowed for my first seaside holiday.
Does a holiday loan pay off?
Vacation loans are in most unnecessary and irresponsible cases. Enough is enough and one can get into big problems repaying. Some people often overestimate their strengths when making a loan, and even in their first installments they find themselves in financial difficulties, which may even end in execution. And for you to tremble about losing your property for just a few days by the azure sea, the stay really isn’t worth it. In addition, execution does not only mean losing property, in the worst case, a roof over your head, but it also logically entails mental problems and often other medical ailments. About executions we have more detail in our next article.
Generally, borrowing for holiday seems like nonsense as borrowing for example Christmas gifts, mobile phones and other electronics. Yes, you will enjoy a short period, give your loved ones, look at amazing places, show off your new mobile phone, but you will pay off these experiences for several years and pay much more for them. Moreover, it is a long-term affair. You will probably be the same next year and the next, if not worse. You get into a vicious circle, repay and repay, raise loans, and the deadline is in sight. One day you will be in a situation where the bank no longer raises your loan and you will collapse under the threat of execution.
When and under what circumstances to borrow on vacation
First of all, you have to decide what loan you choose whether long-term or short-term, banking or non-banking. Banking seems safer, in the long-term is seen the possibility of lower monthly payments. But we should also realize that paying off a five-year holiday with an unnecessarily high APR is not ideal. Summer will come next year and the desire to go on holiday with it, how will you deal with it then?
In short, tying up for several years because of a ten day holiday is really not a good idea. Bank loan it is also usually not done quickly. You need to make an appointment if you are applying for a loan with a bank other than your own account, you need to have your receipts confirmed, and it all takes time. In the end, you may not succeed just because you have a fixed-term employment contract and will expire soon.
No one cares that you know will be extended, you don’t have the paper for it, so you go home with it unassembled. Mothers on parental leave or withdrawal may have similar problems with a bank loan. This is followed by loans to non-banking companies. Here we must also be careful and have our eyes open, which company we choose. Read reviews, customer satisfaction, interest rates.