In the hustle and bustle of life, the school holidays can be the perfect time to take a break, slow down, and reconnect with your kids. Whether it’s a road trip up the coast, a few nights camping under the stars, or a flash getaway somewhere a little more exotic, you might be wondering how to make it all happen without stretching your usual budget. If you’re considering taking out a personal loan for your holiday, you’re in the right place. In this guide, we’ll walk you through how holiday loans work, the application process, alternative ways to fund your break, and some smart saving tips to help you make the most of your school holiday budget.
Overview:
- How holiday loans work
- Alternatives to personal loans for holidays
- Money saving tips for travelling
- Where to take the kids with a personal loan for a holiday
- Personal loan for holiday FAQs
How holiday loans work
A Swoosh holiday loan is a small personal loan that ranges from $2,300 to $5,000. After you apply and we review the application and once approved, the agreed funds will be sent to your bank account within the day! From there, you will make repayments every week, fortnight or month, depending on your agreement.
How to apply
With Swoosh, the application process is straightforward. All you need to do is fill out our application form, which only takes a few minutes, and supply the necessary documentation. Our assessors will review your application within one business day— just keep an eye out on your email or SMS in case any additional information is needed. We pride ourselves on our fast communication and turnaround time!
If you have some more questions, read up on some travel loan FAQs to learn more about how they work.
How to get approved for a holiday loan
At Swoosh, you may be eligible for a loan if you are:
- Over 18 years old
- A permanent resident or visa holder of Australia
- Employed for at least three month
- The owner of a registered vehicle in your name
Alternatives to personal loans for holidays
Before you apply for a personal loan for a holiday, it’s important to determine whether you can meet your regular repayments. If it doesn’t seem like a practical option for you, consider these alternatives:
- Credit card: useful when you don’t need the full amount immediately, but keep in mind interest charges can add up if you only make minimum repayments.
- Buy Now Pay Later: can be convenient for short-term, interest-free payments on items like accommodation or camping gear, but missed or late payments may incur fees and affect your credit score (limits apply).
- Friends or family: split holidays costs with others or ask family for some financial help (just keep in mind that your family can say no!)
- No Interest Loan Scheme: if you are on a low income and need help with essential expenses, such as rental bonds, whitegoods, car repairs, and medical bonds, you can apply for a loan through Good Shepherd
- Financial counselling: contact a free and confidential financial counsellor through avenues like the National Debt Helpline to assess your financial situation and get advice
- Waiting until next school holidays: sometimes you just need a little extra time to save more money for a holiday. You may decide to postpone your trip.
Is a personal loan or credit card for a holiday better?
It totally depends on your financial circumstances and preferences. Generally, personal loans may be suitable for larger upfront expenses, like accommodation and flights. Credit cards, on other hand, are often used for smaller purchases, like food and activities while travelling. Personal loans are repaid over time, whereas credit cards usually require monthly repayments. Some credit cards offer an interest-free payment period, which may be useful for holiday spending, but to follow the terms and conditions of your card provider.
However, keep in mind that whatever option you choose, you should bring a few different payment options as not everywhere visit will be cashless.
Here is a visual summary of the difference between personal loans and credit cards:
Transcript:
What’s the difference between a personal loan and a credit card?
Personal Loans:
- Set amount of money that you are approved for
- Typically lower interest rates
- Establishment fee + regular repayments
- Commonly used for large purchases or unexpected expenses
Credit Card:
- Revolving line of credit: keep spending while paying off
- Often have higher interest rates
- Minimum payment due every month
- Possible annual or monthly card fee
- Access rewards and perks with certain credit cards
Money saving tips for travelling
Choose an affordable destination
Did you know some countries in Southeast Asia like Indonesia or Vietnam can be cheaper than travelling to many places in Australia? No wonder these countries are in the top 10 travel destinations for Australians in the recent ABS report. Flights, food and accommodation in these countries tend to be very cheap, so you can afford to buy the kids some treats every now and then.
Of course, you always have the option of going local and taking a roadtrip to get to know our own country a little better.
Book in advance
We know that peak periods like school holidays can be much more expensive than the rest of the year. It’s the only time you are free! Don’t fret too much, it’s still possible to enjoy holidays like the New Year at cheap destinations with lots of affordable (or even free) things to do. Just book as early in advance as you can to get the best deal!
Just a tip: Tuesday tends to be the cheapest day of the week to fly, while Friday is the most expensive.
Other tips for an extra affordable holiday
- Look for ways to save on accommodation, like Airbnbs for large groups or camping in a tent or caravan
- Plan cheap meals or stay somewhere you can make your own food. It might cost a bit more to stay there, but overall you should save money by cutting down on food costs.
- Do your research and find a few free activities to do during your stay to break up paid activities
- If you get a personal loan for a holiday, it’s still important to track your spending and stay within budget so that you can keep up with your repayments and household expenses
Where to take the kids with a personal loan for a holiday
If you want to keep expenses within your personal loan for a holiday, a “staycation” is always a good idea. A staycation doesn’t necessarily have to be in your home city, but somewhere up to a couple hours away from home. Here are some ideas for our major cities:
- Brisbane: Surfer’s Paradise, Noosa Heads or Byron Bay
- Sydney: Blue Mountains, Newcastle or Jervis Bay
- Melbourne: Mornington Peninsula, Phillip Island or Castlemaine
- Perth: Margaret River, Rottnest Island or York
- Hobart: Launceston, Port Arthur or Richmond
- Darwin: Litchfield National Park, Berry Springs and Fogg Dam
Being in a more familiar area in a familiar vehicle is helpful to avoid unexpected expenses while away from home. Also, with shorter travel time, you’ll hear, “are we there yet?” a lot less. Without having to worry about meeting departure times, it will surely mean reduced stress wrangling up the kids for a holiday.
Personal loan for holidays FAQs
Can you take out a personal loan for a holiday?
Some travellers take out a personal loan for a holiday. Before you apply for one yourself, think about your financial circumstances, whether you can make repayments, and what your travel budget will be.
How much a $5000 personal loan would cost a month
According to the Swoosh travel loan calculator, the maximum amount of $5000 would cost $576.45 with monthly repayments over 12 months. Keep in mind, this is an estimate only and actual repayments may vary.
Want to make the most of the school holidays? Swoosh has come to the rescue
We know that holidays over school term breaks are more expensive, so sometimes you just need a little extra help. That is exactly what our holiday loans are for. If you want to spoil the kids these school holidays, apply for a loan with Swoosh today.
