How to enjoy your holidays without falling into debt

04/06/2026

The warmer weather and holiday season are approaching: that eagerly awaited time of year when we finally take a break, enjoy a change of scenery and give our minds a chance to unwind. However, if you need to borrow to pay for your holiday, it’s important to keep a cool head and plan wisely, no matter how excited you may be. Before rushing to book flights and hotels, remember that a holiday should not leave you carrying a financial burden for the rest of the year.

Revolving credit cards are a prime example. They allow borrowers to choose a low monthly repayment, but this can mean that most of each instalment is used to pay interest, with only a small share going towards repaying the amount borrowed, leaving you tied to the debt for years. Always check the APR before taking out a loan, as it reflects the true cost of borrowing, including interest and any associated fees. A high APR is often a warning sign that the overall cost of the financing may be significantly higher than it seems at first glance. Always check the terms, interest rates and repayment periods before taking out any loan or deferred payment arrangement.

It is good financial practice to set a realistic budget based on your income, resist the temptation to borrow more than necessary and consider saving for a few more months rather than getting into debt. And, of course, keeping a small contingency fund can help prevent any setback from spoiling the experience.

Holidays should be a time to relax, not a source of financial stress. By planning carefully and making informed decisions, you can enjoy them to the full.