As curious Australian travelers turn to credit cards and Buy Now Pay Later (BNPL) options, the cost of supporting our wanderlust is sending many of us more and more out of pocket. Because of this, personal loans can be a game changer for your clients.
Aussies love to travel, and there’s no doubt about it. So much so that a studies show turns out we value travel almost as much as we value food! As previously reported, “Analysis of credit card spend shows that travel ranks fifth, just behind things like food and transportation.”
In fact, the travel bug is one of the top reasons Aussies are in debt, who will be reaching for a credit card. But the appeal of BNPL is also on the riseparticularly among younger travelers, with several airlines jumping on the bandwagon and offering customers the option to buy now and pay later, including Qantas, Virgin Australia, Jetstar and Cathay Pacific.
They might seem like a great option, but it costs a pretty penny if we miss out on BNPL paybacks.
Bill Tsouvalas, Money Expert at Savvy, agrees;
“These new types of payment options are obviously attractive. It really lowers the barriers to impulse buying, which is great for sellers, but for consumers it’s an easy way to accumulate debt that can become expensive debt.”
So what to do?
Cheaper than a credit card without the hassles of BNPL, a personal loan is an excellent alternative for your clients to finance their next dream vacation.
To fund major purchases like a vacation, it’s often best to apply for a personal loan with a competitive interest rate. The main benefit is that these forms of credit have fixed repayments and a fixed end date, so you know exactly how much you owe and when the loan term ends.
Not sure where to look?
While most lenders offer travel loans, a broker offers more choice and equips you and your clients with the information they need Compare personal loans before you decide The best option. To get started, here are a few questions you can ask them to help them calculate the total cost of their next vacation:
From post has tools to help calculation basic international coverage for medical expenses abroad and fully comprehensive insurance for travel abroad for other costs. You can also check out Smartraveller.gov.au for the latest Step-by-step guide to travel planning around COVID-19.
And sure, some may cringe at the idea of spreadsheets (props to those of us who love it), But in the end, the money and stress your customers save with that little bit of extra prep work is seriously worth it! And they will thank you.
As Confucius once said, “Success depends on prior preparation.”
So tell your clients to start planning today, and then go for it get it Compare personal loans. Thanks to you, they are on their way to your next one (get it!) Dream holiday.