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Travellers Loan....

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1. Posted by tom_kirk (Budding Member 23 posts) 11y

Hey Guys,

I'm going on a round the world trip in Nov for 6 months and its gonna cost 5000 pound but the only problem is i'm a bit stuck for money at the moment and might need to borrow about 2000. I read a post on a different site about a Travellers Loan where you can borrow then start paying it back in installments When you come BACK from your travels. Has anyone else heard of this if so any feedback??

Tom

2. Posted by Sam I Am (Admin 5588 posts) 11y

Hmm, I've never heard of this, unless the loan is coming from parents which is very common LOL

Does sound like something which would be out there though. Travellers that go away for a long period are generally pretty young and still have a long working life in front of them so pretty low risk for anyone loaning them the money... I'm guessing this is a UK thing though and would be hard for an international company to be offering.

Sam
ps. I'll feature the thread as I'm curious to responses!

3. Posted by amandy (Budding Member 26 posts) 11y

Hi
Some banks offer a Career Development Loan.
My friend took one of these, borrowed the money to pay course fees to do an MSc course then started paying it off when she finished the course (about 18 months later).
I get the impression that these loans are if you want to take a sabatical from your job to do something that will further your career.
Its possible it may include travelling (i think if you can prove that by travelling, it will mature you to settle into a career it may sound better)
If i remember right it was barclays bank that gave her the loan, so stay with 'high street' banks, i think they are safer all around
Hope this helps
amanda x

4. Posted by Brendan (Respected Member 1824 posts) 11y

I would rather postpone the traveling until I have the money I need, or at least very close to. Loans in general are not a good idea if you can avoid them.

5. Posted by bob flinn (Full Member 173 posts) 11y

One thing that you must know about these loans, the interest starts on the day you take the loan and accumulates surprisingly quickly, you might find that a quick calculation will show that your £2000 loan could be a very expensive pay back one or two years later. A one year delay might be the better idea.
My advice to both of my sons was to save more than their planned budget and leave in their bank at home enough to cover a flight home from anywhere on their travels, just in case something went wrong, lost airline tickets or staying beyond the expiry time on the round the world ticket etc. Both did this, one found the airline in USA would not honour the extension granted by their office in Australia and he had to pay for a ticket from Chicago to home.
On the other matter of finance during an extended trip I gave each of the a credit card on my account for any emergencies if they need money. One of them used it once, to pay a $14 Australian hospital bill. Never-the-less it gave them, and me, peace of mind.

6. Posted by FionaNZ (Respected Member 903 posts) 11y

Tom,

I'd be very wary of getting a loan to fund a RTW, how do you presume to pay it off when you get back if you are going to university & not out into the workforce? Why don't you cut back on the destinations & leave some for later on. I have been in debt from travelling before myself, but I had an establised career to fall back on to repay it. But I vowed then never to get in that sort of situation again. Life's too short to be living hand to mouth & struggling to pay the rent.. as great as the travels are, they don't help then You don't say what your itinery is, perhaps if you let us know, we could come up with some cheaper options for you.

Fiona

7. Posted by nicoledean (Budding Member 31 posts) 11y

HI,
i understand everything everyone is saying about maybe just putting it off until you have saved enough but i've been in the same position and that is really hard to do.
What i did is take a loan over a long period of time (low payments whilst you are away), one which is flexible so that you can make overpayments as you wish (when you get a job when you're home) and no early repayment charges (if you dont spend it all, you can pay it back without being charged).
I took a loan for 3k, over 10 years so that when i was away my payments were £32.00 which was really manageable, when i got home after 7 months, i looked for a job, and after 2 months home i was able to make overpayments of £250 for 11 months and my loan was paid off.
I only paid £144 interest in total,and had it all payed off in 20months, less than 2 years in total.
The interest is £8 a month.
It all depends on the person and how tolerant you are to pay it back.
Also bear in mind if you want to stay longer etc

Northern rock have the exact same deal on with the rate of interest at 5.7% if applying on the net.
Good luck in whatever you choose to do!

8. Posted by newguy (Full Member 197 posts) 11y

In Singapore, a certain local bank operates its own travel agency offering 'travel first, pay later' schemes on selected packages. If you are a credit card member, they claim that you can get to stretch the repayment over a period of 6 months, interest free. Generally, i'm against the idea of taking a bank loan to travel because where i come from, there's a credit bureau that tracks your credit application and repayment records. Although taking a loan just to travel doesn't accurately reflect an individual's credit worthiness, but to a certain extent, it does reflect that person's financial standing. If i'm a poor paymaster, it's gonna seriously affect my chances at getting a bigger loan, say that house, in future.
Hey, to each his own. If someone is confident that he/she can repay the loan on time, then maybe it's not a bad thing to have that bit of debt.

Tom, do your due diligence and hope you can work something out soon and start travelling. All the best!

9. Posted by james (Travel Guru 4136 posts) 11y

Quoting tom_kirk

Hey Guys,

I'm going on a round the world trip in Nov for 6 months and its gonna cost 5000 pound but the only problem is i'm a bit stuck for money at the moment and might need to borrow about 2000. I read a post on a different site about a Travellers Loan where you can borrow then start paying it back in installments When you come BACK from your travels. Has anyone else heard of this if so any feedback??

Tom

Yep, it's called a Visa card

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