How to pay off a holiday in instalments


The subject of how to pay for your holiday has been a matter of debate for many years. Do you take a loan and pay off holiday in instalments, or do you save the money before booking up? Are there more important things to spend your money on, or do you and your family deserve a break?

This subject is not as black-and-white as many assume, as there are physical and mental benefits to taking a break. Indeed, whether you decide to take an actual holiday or not, many companies will force their employees to take at least one two-week break per year. So, what do you need to consider when looking at loans for holidays?

Blog Images Thinkroom

Blog Images Thinkroom

Save it or spend it?

For many people, the big quandary is whether you save it or spend it. Does it make sense to take on short-term debt to pay for your holiday? On the other hand, can you save money before booking up and confirming your travel plans?

Pros and cons of saving before spending

If you are considering loans for travel, you will likely have looked at the possibility of saving the money before you book up. Some of the benefits of this approach include:-

• Avoid taking on further debt
• No pressure on monthly repayments
• You can save at your own pace
• For many people, this approach “feels right”
• Enjoy your holiday without added financial pressure

On the flip side, there are some downsides to this approach:-

• Plans to save money can be disrupted
• Easy to skip monthly savings deposits
• Savings can dwindle away
• No definitive holiday date can reduce motivation
• Will your holiday ever happen?

In reality, if you have money in your pocket or your savings account, the chances are at some point, you will always find alternative ways to spend it. But unfortunately, whether or not these alternative uses for your savings are “more important” tends to overlook the potentially huge benefits of taking a break.

Creating goals in life

If you are in employment, there is a very interesting saying; we work to live, not live to work. Consequently, it is essential to create goals in your life; otherwise, it can be very easy to get yourself into a rut. We all need a break from the monotony of everyday life, whether a day away, a weekend away or a couple of weeks abroad. However, it is not good for your mental and physical health to constantly struggle, push yourself to the brink of exhaustion and find yourself in a situation where you are firefighting every day.

If you want to take out a loan for holidays and pay in instalments, you need to be financially prudent and sensible. There may be occasions where you simply cannot afford it, and looking at alternative, cheaper options may be helpful. However, if you feel you can afford to pay off holiday in instalments, there are numerous benefits to consider!



Benefits of a holiday

Let’s put aside the financial consequences of loans for holidays and look at the simple benefits of a break.

Improved physical health

We all feel the stresses and strains of everyday life but often fail to recognise the impact this can have on our physical health. Stress contributes to heart disease and high blood pressure, which can sometimes be fatal. A report by the New York Times suggested that taking a holiday every two years compared to every six years will severely lessen the risk of heart disease/heart attacks. There are many more physical benefits, but this is perhaps the most pronounced.

Improved mental health

Even just escaping the stresses and strains of everyday life for a few days can make a massive difference to your mental health. Scientists have proven that chronic exposure to stress can lead to anxiety and depression as stress can literally alter your brain structure. Taking yourself out of high-stress situations allows your mind and your body to heal and, quite literally, enjoy life again.

Greater well-being

While the term “greater well-being” may seem a little general, there is evidence to suggest holidays can improve many issues such as quality of sleep and general mood. For example, the Gallup-Heathway’s Well-Being Index shows less frequent travellers scoring 51.4, with more frequent travellers scoring 68.4. In addition, frequent travellers involved in the index reported better sleeping patterns and improved moods more than five weeks after their vacation had ended.

Increase motivation

Only when you take yourself out of life’s everyday challenges can you breathe again, relax and recharge your batteries. Even though we know that chronic stress can cause physical and mental issues, why do we still push ourselves to the limit? Scientific evidence shows that taking time away from your typical environment is good for your brain, mental health and cognition. Returning from your vacation refreshed and ready to go, increased motivation can significantly improve your work and daily life output.

Improved family relationships

Whether we like it or not, everyday life has many stresses and strains, and sometimes relationships with family and friends can become frayed. Stuck in a challenging powder-keg environment can take your focus away from personal relationships. It is only when you take time out, relax and spend time with each other that everything is put into perspective. Many return home from a family holiday with broken relationships mended and more of a team mentality than individuals fighting constant fires.

Decreased burnout

While many people mock the concept of burnout, it is well documented that constant work and pressure can change your thinking and often lead to a mental block. Naturally, many of us associate burnout with high-profile careers such as stockbrokers and financiers, but everyday life can be challenging. When we are suffering pressure in our daily life, whether at home or work, it is difficult to appreciate the severity until we take a step back, take a holiday and relax.


Unless you have had a holiday disaster, it is difficult not to return home with a changed outlook on life, health, relationships and work. It is literally time to refresh your batteries, forget about work and everyday life and enjoy yourself. Whether this means taking a foreign break, a break in New Zealand or even just a weekend away, it all helps. First, you have the vacation to look forward to, the holiday itself and then come back refreshed.



Loans for holidays

Here at Crester Credit, we provide a range of loans for travel and loans for holidays, structured around your requirements and affordability. While obviously, as responsible lenders, there needs to be a clear, affordable repayment path, it is possible to repay your loan over 48 months. In our experience, most clients will look to repay loans for holidays in a much shorter timeframe, but we are flexible.

Pay-off holiday in instalments

Typically, we find that customers will book their holiday a few months in advance and look to have it repaid in full before they leave. Paying in instalments allows you to retain control of your finances and make affordable monthly repayments. Obviously, the shorter the repayment timeframe, the less interest paid. While the majority of loans for holidays tend to cover travel and accommodation, there may be the option to add in some spending money. It makes little sense to go on that dream holiday and not enjoy it!

Finding the best deals

While many people still prefer to go through travel agents, this will add an extra layer of cost to your vacation. There will be occasions where it is best to go through travel agents, but for less complicated holidays, you may be able to arrange this yourself online. Some simple tips include:-

Monitor accommodation prices

We all know that accommodation prices vary depending upon the season. This prompts the question, do you need to go in the peak season, or would an off-peak vacation be more affordable? Even the quickest of glimpses on the Internet will show you the variation in domestic and international accommodation prices, depending on the season. Monitor these prices, look for bargains and compare and contrast on-peak and off-peak prices. There may be some great deals to be had!



Google flights

Whatever you need, Google will often provide! Consequently, many people now use the Google flights service, which monitors the price of flights worldwide. So whether you are looking for a last-minute bargain, long-term discounts or perusing several options, the Google flights price tracker could literally be priceless!

google flights

Monitor currencies

In the “normal world”, there tends to be minimal currency variation. However, in recent times we have seen an array of economic shocks as well as the pandemic. Consequently, this has led to some volatile exchange rates, which can either make your international break much cheaper or more expensive. Once you decide where you’re going, monitoring the exchange rate is worthwhile to see if there is still value for money. It may be that the exchange rate moves too far against you, and you have to look elsewhere but fail to prepare, prepare to fail. You don’t need any shocks to take the shine off that holiday!


Loans for travel and loans for holidays are extremely popular, offering the ability to buy that dream holiday and repay in instalments. However, as a responsible lender, there needs to be a stable income stream to cover future repayments. This could be employment income, pension income, state assistance or a mixture. The application process is simple and to the point, with most applicants receiving a decision within 10 minutes.

It is essential to be honest, and upfront, with your expenditure and income, as there is a degree of flexibility allowing you to pay off holiday in instalments. So that dream break may not be too far away!


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