Guest post by Lauren Wiseman. Lauren is a marketing specialist and regular contributor to bizzmarkblog.com. She is also a passionate traveler who recently became digital nomad! Find out more about Lauren here.
3 Smart Reasons to Get a Travel Loan
Living as a digital nomad, you get to experience some amazing work and travel opportunities. This unique lifestyle allows brave individuals to travel across the globe with nothing more than a backpack and a laptop and finish their jobs anywhere with a decent internet connection.
However, as extraordinary as this style of living might be, achieving it is not always as simple as you might think it is.
Buying the airplane ticket and getting the necessary paperwork is often more than enough to burn a hole through the average pocket and we’re starting to see more and more individuals, whether digital nomads or not, decide that applying for a travel loan might be the best idea.
It’s more practical than a credit card loan
Credit cards have been and always will be far better when it comes to short-term expenses that you can easily pay off by the end of the month.
Using them for long-term expenses and financing big purchases is simply a bad financial move.
Instead, they should only be used for various daily expenses or monthly bills.
Credit card loans are one the most expensive ways of self-financing, as interest rates tend to rise to double digits for those whose credit scores aren’t absolutely spotless.
Furthermore, credit cards have a debt limit and they are often unsecured, meaning they are not backed by any collateral.
Personal loans, on the other hand, may or may not be secured, yet they offer significantly lower interest rates when compared to credit cards, especially for those with a solid credit score.
There’s a big difference between the way you pay off debt between personal and credit card loans, with the former one being referred to as “installment debt”. This means that you get a lump sum of money that you pay off over time in equal payments that often include interest and principal.
It’s one of the stepping stones for digital nomads
Travel loans are generally the preferred method of obtaining quick cash by digital nomads.
The lack of permanent home leads to some very interesting restrictions.
Namely, you can get a loan before you leave your home country, but getting one abroad usually turns out to be a bureaucratic nightmare.
Granted, as a digital nomad, you’re not only traveling the world, but also working no matter where you end up residing at the moment, but you want to have a financial safety net to protect you in case anything goes wrong financially.
This is why many digital nomads rely on personal online loans, as they can easily be paid off using their savings.
Among the many different benefits offered by online loans, fixed payments are probably one of the most useful options: they make budgeting plans a lot easier to plan and execute, particularly for those who choose to pay them off over a period of a couple of years.
You’d never miss a good travel deal
Travel expenses are notoriously high. Even if you spend up to a year in a single place, you will still be moving to a new location once per year.
Traveling internationally often includes paying for paperwork such as visas and covering various travel costs. Finding the best ticket deal becomes a real priority and getting an online travel loan helps take advantage of the best travel opportunities the moment they become available and avoid international fees that usually accompany the use of credit cards abroad.
The life of a digital nomad is not complete without a way to generate some income while on the road. But there’s often little to no guarantee that everything will go according to plan.
Personal online loans provide digital nomads with a financial cushion in case anything goes wrong and allow them to continue pursuing their passion for traveling without having to worry about compound interests, international fees, and end-of-the-month balances.
This lifestyle is hardly for everyone, but if you want to try out your luck but you don’t have any disposable cash or have a poor credit score than online travel loans might be an ideal solution to your problem.
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