Secured Loans

Secured Holiday Loans

Secured holiday loans are a good way to raise quick money for this year's vacation, if you live in the UK. Credit products are a big part of how modern British people live their lives and when you compare loan deals and apply for a credit product you have a choice to make. You can either secure the product with an asset of some kind or apply for an unsecured borrowing which does not need any collateral. Though the general wisdom here is that secured loans are better only for large scale purchases like houses, business investments or cars and unsecured borrowing is a more responsible way to handle one off purchases like a holiday, this is not always the best advice.

In fact, nowadays, secured holiday loans are readily available in the UK and may offer a better route towards paying for the vacation you wish to take. We all need a break now and again and you shouldn't allow your budget constraints to ruin your ability to do so. If you feel an unsecured product will lend you an adequate amount for the holiday you need, it is well worth considering the many advantages of secured holiday loans.

The Advantages

The first major advantage of taking out secured holiday loans is how, relatively, straightforward the process is and the ease of access they represent. Unsecured borrowing of any real size is increasingly difficult to get your hands on in the UK and holiday makers who need help in the form of loans may find that it is impossible to get an adequate unsecured product. Lenders of secured holiday loans are far more likely to sit down with you if you, as they know you are prepared to offer an asset as proof of your responsibility and commitment to repayments.

Not only that but, believe it or not, in many cases, secured borrowing is a cheaper option than an unsecured loan. While many, many people will purchase a holiday on their credit card without so much as a blink, those same buyers would never consider taking out secured loans to pay for the same purchase. Yet the rates on credit cards are frequently much, much higher than those attached to secured loans. By going with the option that is generally perceived to be the less risky one, buyers are putting themselves into the line of fire for a bad credit rating by hitching themselves to big interest percentages.

Secured holiday loans are also likely to be granted with little provision or requirement for the manner in which the borrower spends the money. If you are taking on unsecured debt in order to fund your vacation it will generally require you to limit your credit use to certain areas (tickets, accommodation, etc.) A secured loan will usually be unrestricted, so you can spend the money on whatever element of your vacation you believe is necessary.

Another method many people have for paying for their holidays which is generally perceived to be less risky but can, in fact, be much more damaging than taking out secured holiday loans is to spread the price of the holiday across a number of different sources: a little bit on their credit card, a little bit from a small personal, unsecured loan, a little bit on their current accounts overdraft. Taking on these multiple debts means taking on multiple interest rates, due dates, terms and conditions which makes the repayment process incalculably more difficult and frustrating. Secured holiday loans give you less to worry about - a single monthly payment and a single rate of interest until your debt is clear.

Things to Look out for

Of course, the final decision on how you fund your holiday is up to you. If you are able to budget without taking out any kind of loans at all then, of course, you should do that. The important thing is that you really consider all your options and the complete ramifications of the choice you make. While unsecured debt always sounds like the best choice, when you work out the entire budget it often turns out to be a false economy. Does this mean secured loans are the only choice for your vacation?

Not at all, but they are certainly worth considering. They do come with risks and you need to be aware of what they are. As your assets are now on the line, repayment is vital and budgeting should be done realistically and honestly. Don't fool yourself into thinking your borrowing power is stronger that it really is because you want that dream vacation.

When you take your vacation you want to get the most from it. Sometimes this means borrowing a little extra. Secured holiday loans allow you to do that. Consider them as a way to add to your travel budget.