Thursday, March 14, 2013

How to finance a getaway, vacation or road trip

Financing a getaway, vacation or road trip can be intimidating. These tips show you how to finance a getaway or vacation so you can hit the road without worry. (Click here to read more about how to finance a vacation.

4. Layaway
Some companies are allowing you to put your vacation on layaway. Sears is the biggest but other companies are  getting in on the act. Check reviews carefully before using a layaway plan or financing a trip from any business that you are unfamiliar with.

5. Bank or credit union loan
A lot of people finance a vacation with a loan. Home equity and signature loans can look attractive. You go into your finance institution and fill out the paperwork for the travel loan just as you would for other credit. If you qualify, the institution will let you know in a day or two. Funds can often be transferred directly into your checking account for instant access. It's not my favorite way to finance a vacation but it does seem to be gaining popularity.

6. Credit cards
The thought of putting an entire getaway on a credit card gives me chills. Swiping that plastic is an easy way to finance the trip but the high interest rate can be a deal breaker. I suggest paying for the trip up front or self-financing. The credit cards can be used as an emergency reserve or to hold hotel rooms instead of being used to finance a vacation. (This article covers more about using credit cards on vacation.)