Practical Ways to Budget for Your Next Vacation

A vacation is undoubtedly an exciting and fun way to spend time with family and friends, relax, and let off some steam. However, it can also be costly, depending on the trip you have in mind.

If you travel with family or prefer to leave the country, costs could be much higher. Sean Martin D. Plantado, head of customer service at, notes that with inflation continuing to escalate, many Filipinos are struggling to pay for vacations, with most scaling back and searching for other ways to travel cheaper.

Are you planning a trip but unsure if you can pay for it? You do have the option to finance your trip with a travel loan –

A travel loan must be treated as a last resort and only be applied if you’re confident you can pay it back on time. However, it could also be a decent option to help you pay for that urgent travel or a once-in-a-lifetime trip.

You must always try saving and budgeting before taking out a loan. If you believe taking out a travel loan is the ideal move for you, there are numerous trusted lenders out there to help you.

What is a Travel Loan?

A travel loan is an unsecured personal loan that you can take out to help cover your travel expenses.

You can get this loan from any lender that provides personal loans. These loans can be utilized to cover any travel expenses, such as food, lodging, transportation, and entertainment.

Nonetheless, travel loans must only be utilized for special occasions such as emergencies or honeymoons, as they can impact your finances and credit score. Only take out a travel loan if you are confident you’ll pay it back on time.

As travel expenses continue to increase in the Philippines, travel loans will likely become more typical. The cost of domestic travel and overall travel spending in the country is also expected to increase over the next few years.

What Are the Pros and Cons of Using Travel Loans?

Travel loans can help you take the travel of your dreams sooner than later, but they must be considered a last resort unless your trip is an inevitable emergency.

Before considering a travel loan, try to save up and budget for a trip so you can afford it on your own. But if you’re considering taking one, consider the pros and cons first.


  •         Help fund your emergency travel

Are you taking a trip out of necessity than pleasure? Perhaps it’s time-sensitive? Then a travel loan could be an excellent option to allow you to travel quickly.

  •         Potential for lower interest rate

Depending on your credit, personal loans have lower interest rates than credit cards. A travel loan could be a lower-interest option if you’re planning to use a credit card to pay for your vacation.

  •         Fixed monthly payments

With fixed payments, you can pay the same monthly amount, making it simple to plan. How cool is that?


  •         It can affect your credit score if you don’t make the payments

Do you often pay late on your payments or end up deferring them? Your credit could take a serious hit.

  •         There are monthly payments

Taking out a travel loan means you’ll be on the hook for monthly payments until it’s paid off. Taking out a loan is certainly a long-term investment

  •         Fees can increase the cost of borrowing

Most lenders charge a series of charges. Look into the fees first before applying for a loan.

7 Helpful Ways to Budget Your Next Trip

But before you start taking out a travel loan, consider the following alternatives.

  1.   Wait until the offseason

Prices are often higher in certain areas during particular times. For instance, it’s costliest to go to Baguio during the colder months than it would be to go during the summer months. Consider visiting your preferred destination during the offseason to enjoy the lower prices and less crowded spots.

  1.   Pick a less expensive trip

If the trip you are planning is turning out to be too costly, you may wish to consider a small-scale vacation or changing your destination to a less expensive area.

  1.   Look for discounts

There are often discounts available if you only know where to look. Do your research to find the cheapest hotel rooms, flights, and travel packages. There are always deals online.

  1.   Travel with a bigger group and divide the costs

Traveling with a group and sharing the travel and accommodation expenses can help cut your costs substantially.

  1.   Save

If you’re determined to take a vacation, saving early is always a smart idea. Set aside a predetermined amount from every paycheck to go toward your travel fund. Setting a travel budget will make it simpler to determine how much and for how long you’ll need to save.

  1.   Use reward and travel cards

Most credit companies provide reward programs and perks for traveling. Look for a credit card that enables you to build up travel points as you spend. That could help you cut travel expenses. Other card providers even award airline miles as you spend and pay off the card.

  1.   Always budget

Planning accordingly will help you save money on your vacation. Spend time looking for the cheapest lodging and travel options, and look up tips and tricks for cheap travel to specific destinations.

Making a budget and finding options that fit your budget is the best way to save money on your trip.

Final Thoughts

Despite the increasing costs, Filipinos are ready to travel after the pandemic. Increasing inflation makes travel more challenging, but there are still many ways to reduce costs and keep your vacation budget on track.

If you cannot save up but are assured you can pay back the loan, a travel loan could be an awesome way to finance your upcoming vacation. Nonetheless, always do your research and compare different financing options before deciding.

Saving up and finding deals is always better than taking on debt. We wish you good luck!

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