Generation Y... Forbes.com has 70% of us indicating paying for travel as an incentive to work, not far behind paying for our necessities- sound right? As Gen Y'ers, we are also inside that space of life when we are paying for cars, kids, homes, our uni degrees.. and we're meant to have copious coin left over for travel? If only! I'm also going to throw it out there, that we have become conditioned to 'enjoy now pay later'.. like credit cards for furniture and afterpay even for gym pants and tattoos now.. it's a part of retail culture and it's here to stay.
It's become a part of my world now too with offers having you in Europe quicker than you'd whip up a batch of meatballs in your new Thermomix (also on credit), and it's something I've had differing opinions on since its introduction into my industry. A previous work culture had me conditioned to buck this trend citing more than once "I'm a travel agent, not a loan consultant," and I still feel personally I'd prefer to deal with a professional in the finance field when talking about taking loans.
However, a change in my thinking was really credited to just being realistic about our current spending culture, how to work with not against. I concur it has a place in the travel industry, but like finance in many marketplaces we must beware of the sharks!
Over the years I have seen many occasions of clients falling in love with their travel plans so much they can almost taste those authentically made meatballs in a local Italian eatery.. only to crash back down to reality when it comes to "what's due and when". It can be totally crushing! I guess it's situations like these that have seen the flood of credit options available through travel agencies. Still, that does not make me an expert in finance, especially yours!
Where am I going with this blog you ask, am I revealing a new 'travel now pay later' deal.. no! My clients who know me well will tell you I love what I do, but what they tell me is that they know I care, like actually care about them personally. I'm putting pen to paper, not to discourage people from applying for credit in what ever way they see fit for themselves, but to say.. hey, there's options, have you looked at them? Don't get pressured into the convenience of on the spot finance before considering the many available options that may work out better for you in the long term. A poor choice in obtaining credit can affect you years after the tyres hit the tarmac at Sydney International. Before clicking the apply now button, can you have answered for you the following;
- What do the fees look like.. all of them - What will my repayment look like if I don't pay this off in the interest free term? - How much of that is coming off the loan and how much is interest? - What fees apply for paying this off within the interest free period? - Where is the office of the credit provider, who is the person looking after me?
So what am I suggesting you do if in the position where taking credit forms a part of your holiday plans? DO THE RESEARCH BEFORE YOU TAKE AN EASY OPTION! I've done a part of the leg work for you and headed into the Tamworth branch of the Regional Australia bank, to chat about ways clients can pay for travel but avoid the credit trap. Do you know how small unsecured loans stack up against the 'travel now pay later' loans? Have you looked at how your mortgage is set up and if you have the ability to fund your travel that way, over a longer period with lower interest?
Isn't it just nice to talk to a person, rather than a credit app! The Regional Australia Bank is filled with people with the right skills to help you pay for the trips of your dreams and avoid the holiday hangover debt trap, go in and speak to the team, or start your research here, https://www.regionalaustraliabank.com.au/. Tell them I sent you!
(In the name of transparency, I am in no way affiliated with any credit providers, or gain anything from recommendations or loan approvals. I write this blog purely because I care for my clients!).