Here's how to do it right: it's time to start planning your summer vacation

You do not need us to give you a reason to go on your next vacation, what you do need is for us to reveal to you how you can finance it in the most affordable way

In collaboration with ICC

14/04/2022

Thursday, 14 April 2022, 07:10 Updated: Tuesday, 26 April 2022, 11:44

• Share on Facebook

• Share on WhatsApp

• Share on Twitter

• Share on Email

• Share on general

• Comments

  Comments

A well-known saying claims that it is better to collect experiences instead of objects.

And it's even scientific.

As early as 2011, an article was published in the prestigious Journal of Consumer Psychology that claims that happiness lies in the total experiences we collect and not in the objects we acquire.

This is of course not the first time they have addressed what really causes happiness to human beings (hint, this is not shopping).

Also during 2015 a study was published that was conducted for about two decades at Cornell University in New York and the inevitable conclusion is that the key to happiness lies in the accumulation of experiences, and not in the accumulation of objects.

Now that we've figured out what makes us all happy, we'll turn to planning our next summer vacation.

True, a quick look at current expenses and the cost of living reveals that this is not a simple task for most households in Israel, but - it is not a matter of luxury or unnecessary pampering.

I mean, it's also a treat of course to go on vacation, but it's mostly a human, family, personal need.

An almost basic need to disconnect, enjoy, hang out, change atmosphere.

So there is a reason to go on vacation, and now we will reveal to you that even if at the moment a little stressed in terms of cash flow - you should not give up on the dream because there are great financial solutions for exactly these moments of life.

It is commonly thought that a loan is only taken out when there is a crisis or difficulty, but it is actually a great tool to finance dreams - and a vacation is definitely a dream that can and should be realized, and beautiful one hour earlier.

A vacation is definitely a dream that can and should be realized, and beautiful one hour earlier (Photo: ShutterStock, PR)

The first step is to understand from whom you are taking a loan.

There are several entities from which you can borrow money: banks, credit card companies, finance companies, pension funds, provident funds, social organizations and private entities.

For example, through ICC you can apply for a loan of up to NIS 200,000, at an interest rate starting from prime + 1%, up to 84 payments, and within about three days.

Usually organizations like banks or pension funds run more slowly when it comes to approving loans.

What else is important to know?

As in any field - it is important to conduct a market survey.

What do you get, under what conditions, what do you return, when, how much, is there an early departure point and the like.

Just as you learn about your vacation destination - so you should go deeper and learn about the loan that will finance your dream vacation.

In an age where it is possible to get a generous loan at the push of a button, it is worth knowing what each decision means.

Because if even the decision to go on vacation is an informed decision, it is easy and material that the decision on how to finance it should be made responsibly.

It is important to understand what the interest rate is and what the principal is, and what is returned when.

These are basic concepts that are worth learning (and even teaching children that smart financial management is the key to success in life).

By and large, it is said that interest is the price of money, it is the consideration you pay for the use of money at the moment - in exchange for its return in the future.

Therefore this figure is super significant to understand the costs.

To calculate the total loan amount, add up all the money you received against all the money you repay.

The website of the Ministry of Finance has a calculator for calculating a loan and it is worth using it.

Find out, research, ask - and finally adjust the loan to your repayment ability (Photo: ShutterStock)

How to return?

Usually a loan is repaid in regular and convenient monthly installments.

This is why a loan is a convenient product - you get a necessary amount of money at once but repay little by little, plus interest.

Regarding the repayment - consider the matter of arrears and fines that may result in not only an additional payment but also a damage to the credit rating.

Think you can repay the loan sooner?

This too has meanings.

Important Tip 1 - Do you work for a large public or business entity?

Check if you have benefits.

Many credit card companies and banks provide loans on more favorable terms to those who belong to a strong body.

Important Tip 2 - Have you heard of a credit rating?

Well not only companies and countries have credit ratings but also people.

In fact, it is a measure that measures a customer's compliance with its credit obligations.

Important Tip 3 - Compare.

Many will be happy to give you a loan so you should compare to get the best terms for you.

Any amount you earn from the move can be used as a pampering budget for the upcoming vacation.

And most importantly: find out, research, ask - and finally tailor the loan to your repayment ability.

This way you can enjoy a quiet vacation in advance, without worrying that you have taken on too much of a commitment.

Having said all that, we do not know what to do with you, but with us you can already smell the sea, hear the sound of the waves and fantasize about ice cream by the pool.

Failure to repay the loan may result in a charge of arrears interest and enforcement proceedings.

Lender: Cal Financing Ltd. Subject to the company's terms and compliance with the underwriting conditions.

• Of money

• Our money

Tags

• Visa Cal

• Loans