As eager Australian travelers turn to credit cards and Buy Now Pay Later (BNPL) options, the cost of supporting our wanderlust is sending many of us further and further out of pocket. . That’s why personal loans can be a game-changer for your clients.
Australians love to travel, and there’s no doubt about it. So much so that a studies reveal revealed that we enjoy traveling almost as much as shopping! As previously stated: “Analysis of credit card spending showed that travel is number five, just behind things like food and transportation.”
Indeed, the travel bug is one of the biggest reasons Australians get into credit card debt. But the attraction of BNPL is also on the riseparticularly among younger travellers, with several airlines jumping on the bandwagon and offering customers the option to buy now, pay later, including Qantas, Virgin Australia, Jetstar and Cathay Pacific.
They may seem like a great option, but it costs a pretty penny when we miss BNPL refunds.
Bill Tsuvalas, money expert at Savvy, agrees;
“There is a clear appeal for these new types of payment options. It really lowers the barriers to impulse buying, which is great for sellers, but for consumers it’s an easy way to rack up what can become costly debt.
So what to do?
Cheaper than a credit card without the quagmires of the BNPL, the personal loan is a great alternative for your clients to fund their next dream getaway.
Often the best option available to finance a larger purchase, such as a vacation, is to apply for a personal loan with a competitive interest rate. The main advantage is that these forms of credit have fixed repayments and a fixed end date, which means you know exactly how much you owe and when the loan period will end.
Don’t know where to look?
While most lenders offer travel loans, a broker offers more choice, providing you and your clients with the information needed to compare personal loans before choosing the best option. To get started, here are some questions you can ask them to calculate the total cost of their next vacation:
AusPost has tools to help calculate basic international coverage for overseas medical expenses and comprehensive international travel insurance for other expenses. You can also consult Smartraveller.gov.au for the latest step-by-step travel planning guide around COVID-19.
And of course, some may cringe at the thought of spreadsheets. (props for those of us who adore it), but in the end, the money and stress your customers will save with the little extra prep work is well worth it! And they will thank you for it.
It’s like Confucius once said, “Success depends on advance preparation.”
So tell your clients to plan today, then head over to Clever to compare personal loans. Thanks to you, they will be on their way to your next (wise!) dream getaway.