When I started out to write a blog about Vacation Loans I thought it was going to be easy. But, as I got further into my research, I realized it wasn’t going to be the cakewalk I had originally envisioned. There is some disagreement out there on whether or not “Vacation Loans” are a good thing or not. One web site even went so far as to say “Any financial advisor worth their credentials would give an emphatic ‘no’ to using loans, or in other words, go into debt, to go on vacation.” What?? I was shocked. I’ve worked here almost 30 years and I’ve always thought they were a valuable option for our members. But, let’s face it… it does make a little sense.
In general, vacations should be paid for with money you already have, or that you save up until you do. However, the more I read the more I realized that ECU Credit Union’s vacation loans were not the evil products some were trying to make them out to be. For starters, our vacation loans come with a repayment plan and a low interest rate. They must be paid off in one year. So, if you compare our vacation loan to say charging the trip on your credit card, the vacation loan may cost you less in the long run because they impose discipline and payback deadlines.
Yes, saving up for your vacation in advance and paying with money you already have is ideally the easiest and least expensive way to fund a trip. However, under the right circumstances, it may make sense to take out a vacation loan. Perhaps a close friend or relative is getting married or maybe a family reunion you want to attend. The more I thought about it, the more convinced I was that an ECU Credit Union's Vacation Loan was an excellent option. Keeping the amount you borrow low so you can pay it back easily within a year is a great alternative to adding to credit card balances. There are a lot of loan options out there and many lenders are not always looking out for your best interest. That’s why I’m glad we continue to offer vacation loans to our members. Even after all my research, it’s still a product that I can stand behind.
AuthoredBy: Nancy Preising
