Travlang Travel Guide

Travlang's Guide to International Travel

Can’t Afford Scuba? The Pros and Cons of Taking a Personal Travel Loan to Go Scuba Diving

 

Money’s in short supply for many Americans.

Indeed, household debt’s at an all-time high. Last year, US consumer debt reached and exceeded a mind-blowing $13 trillion.

Financial times are tough. People around the country are finding it hard to cover even basic expenses. The idea of affording ‘luxuries’, like vacations and fun activities, can seem laughable!

Scuba diving arguably fits that description. As incredible as it is, the costs involved can be a stumbling block for aspiring divers.

Thankfully, there are ways that anyone can assemble the money required to do it. A personal travel loan is one such example.

However, there are numerous advantages and disadvantages to these loans to consider first.

Trying to decide if this is the best way for you to afford scuba lessons? Read on to learn the pros and cons involved.

Advantages of Personal Travel Loans

Let’s start with the good stuff. The following reasons explain why travel loans can be the perfect way to afford to scuba dive.

1. You Get to Scuba Dive!

First thing’s first:

That personal travel loan means you get to fulfill your dream of scuba diving. You may have wanted to do it for years, but never had the financial means. Finally, the time has come to tick it off your bucket list.

That fact highlights a significant benefit of any personal loan. They provide you with the resources to make memories. Life is about more than money!

The true value of the holiday it pays for can far exceed its financial worth. Going on vacation can reduce stress levels, offer a change of scenery, and live on in memory for years to come.

2. It’s Quick and Easy

There’s always something to be said for saving.

But, let’s face it, sometimes we want instant gratification.

Travel loans enable you to avoid the time and effort involved with saving up for a holiday. Instead, the money can be available to you in moments.

That’s of immense benefit if you need a holiday in a hurry.

You might wonder if your credit score would get in the way. The simple answer is that it might! Nonetheless, certain providers can offer bad credit personal loans too. Those scuba dives don’t have to be off-limits!

3. Lower Interest Rates

Time to turn to practice personal loan incentives.

Firstly, many of them offer lower interest rates than alternative forms of debt. Credit cards are a prime example. Anyone in credit card debt knows how debilitating the enormous interest payments can be.

In contrast, personal loans come at a reduced cost. Lower interest means a cheaper loan. Of course, your bank balance won’t thank you for it. But, compared to credit cards, it’ll be far better off.

4. Fixed Term Setup

Here’s another bonus of personal travel loans over credit cards:

The debt is usually fixed term in nature.

That means you know upfront exactly how long you’ll be paying it off. There’s a reassuring light at the end of the tunnel; a level of predictability that helps you plan your finances elsewhere.

By comparison, credit card debt repayments can go on indefinitely! Minimum payments, compounding interest and missed repayments create a snowball effect. Paying down credit cards can feel never-ending.

Disadvantages of Personal Travel Loans

Alas, it isn’t all good news. You should always keep the potential cons in mind too. Here’s why travel loans are always worth thinking hard about.

1. It’s More Debt

There’s no escaping it:

Personal loans mean increasing your burden of debt.

That’s bad news if you’re already in financial dire straits. As we saw in the intro, debt is a ginormous struggle for millions of households in the US. Taking out another loan can feel like adding fuel to the fire.

In an ideal world, you’d find the money for scuba diving elsewhere. From saving up, cutting back, taking on a second job, selling your things, and (ironically) paying off your debts!

2. Short Term Gain, Long Term Pain

The ‘best’ debt is always taken on to buy appreciating assets.

In essence, always try and take out loans to pay for things that get more valuable in time (real-estate is a prime example of this). This approach makes debt worthwhile; the financial risk amounts to leverage.

In other words, you borrow money in order to make more of it in the future.

Vacations are the total opposite. It’s a one-off expense that offers nothing tangible in return. The benefits are purely emotional and spiritual, as opposed to financial.

It may seem totally worth it, and who are we to say it isn’t?!

Nonetheless, there’s no escaping the fact you’ll be paying for that one-time, zero-return purchase for years to come. It begs the question: are those scuba lessons really worth it?

3. It Can Get Expensive

Finally, it’s worth remembering that you don’t just pay the loan amount back.

Obviously, it’s loan amount plus interest. Unfortunately for you, that loan can get expensive.

Imagine a hypothetical situation where you borrow $2,500 for your vacation and scuba lessons. Assuming 10% interest and a 5 year fixed term contract, you’ll repay $53 per month and a total of just under $3,200.

That’s approximately $700 more than you borrowed! The more you borrow, the higher the true cost of the loan.

Time to Decide on That Travel Loan

There you have it: the pros and cons of getting a personal travel loan for scuba diving.

Peoples’ finances are, to put it mildly, a little stretched in the US right now.

We’re living through challenging economic times. Americans are struggling under heavy burdens of debt and inadequate monthly income. Living paycheque to paycheque, doing anything other than getting by can feel off-limits.

Vacations and scuba diving can seem to hold a permanent place in dream-land. But, as we’ve seen, they don’t have to.

Personal loans, despite their potential downsides, can provide a solution to the problem. By providing quick access to the necessary cash, you can be diving in no time.

Like this article? Looking for diving inspiration to get through the financial challenges? Check out the ‘Travel and Trips’ section on the blog now.