As wantful Aussie travellers turn to credit cards and Buy Now Pay Later (BNPL) options, the cost of supporting our wanderlust sends many of us deeper and deeper out of pocket. That’s why personal loans can be a game changer for your customers.
Aussies love to travel, and there’s no doubt about it. So much so that a studies reveal revealed we value travel almost as much as our groceries! As previously reported: “Analysis of credit card expenditure has shown that travel comes in at number five, right behind things like food and transport.”
Indeed, the travel bug is one of the top debt-inducing reasons Aussies will reach for a credit card. But the allure of BNPL is also on the rise, particularly among younger travellers, with several airlines hopping on the bandwagon and offering customers the opportunity 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 repayments.
Bill Tsouvalas, money expert at Savvy, agrees;
“There is obvious appeal in these new kinds of payment options. It’s really lowering the barriers to impulse buying, which is great for sellers, though for consumers, it’s an easy way to rack up what can become expensive debt.”
So what is one to do?
Cheaper than a credit card without the mires of BNPL, a personal loan is an excellent alternative for your clients to finance their next dream getaway.
The best option available is often to finance a bigger purchase, such as a holiday, is 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, meaning you know exactly how much you owe and when the loan period will finish.
Not sure where to look?
While most lenders offer travel loans, a broker provides more choice, equipping you and your clients with the information needed to compare personal loans before choosing the best option. To get started, here are a few questions you can ask them to help calculate the total cost of their next holiday:
AusPost has tools to help calculate basic international cover for overseas medical expenses and international comprehensive travel insurance for other costs. You can also check out Smartraveller.gov.au for the latest step-by-step travel planning guide around COVID-19.
And sure, some may cringe at the idea of spreadsheeting (props to those of us who adore it), but in the end, the money and stress your clients will save with the little bit of extra prep work are seriously worth it! And they will thank you for it.
It’s as Confucius once said: “Success depends upon previous preparation.”
So tell your customers to get planning today, then head to Savvy to compare personal loans. Thanks to you, they’ll be on their way to your next (savvy!) dream getaway.
