Buy Now Pay Later Travel – All the information you need!

Financing a holiday is expensive! Thanks to the buy now pay later travel plans available, however, you can still get to go on holiday without breaking the bank!

What is Buy Now Pay Later travel?

• This is a travel loan that divides your purchase into a series of smaller and more manageable payments with the first payment due at checkout.
• The BNPL lenders partner with travel services and airlines to offer this loan option on the provider’s website, and the lender’s website.
• Once you sign up, you pay off your travel loan over a fixed term at a set annual percentage rate. This rate includes interest and any fees. The best part is that there are no upfront fees!

Here are some great tips to help you decide on when to take your next buy now pay later travel loan.

1. Your BNPL loan is an easy-to-manage personal loan

• The payment period for your BNPL travel loan is determined by your credit listing and the payment company. If your listing is good, your payments can be spread out over several months or years with little or no interest charged. You also don’t have to pay anything upfront.
• Also, you can take this loan after you have planned everything so that you know exactly how much you need and whether you will be able to pay it back.

2. Your BNPL plan can help you manage your finances

• If you use your buy now pay later travel plan well, it can actually help you to manage your finances better. This is because you will be forced to manage your cash flow so that you keep up with your payments and avoid falling into debt.
• If you finish paying up in time, your credit listing is not affected in any way.

3. Don’t get tempted to sign up for too many BNPL plans

• With the increase of lenders enticing customers with their easy payment plans, it is likely that you may be tempted to sign up for a BNPL travel plan when you already have other debts elsewhere.
• To avoid this, keep track of your debts. If you don’t have any debts, then you can go ahead, making sure that you do not miss any payments. Missed payments attract high rates, which will cost you even more. Avoid getting into a debt trap as much as you can. If you already have other things you are paying off, let the travel plans wait.

4. Consider what taking a BNPL travel plan will do to your financial plans

• Do you have other financial obligations that you are taking care of? If you decide to take a travel plan to go on holiday, will you still be able to meet your other obligations, or will you have to borrow to make ends meet?
• Look at your current and future financial obligations before you sign up for a travel plan, to see whether you can fit in the extra payments without sacrificing any of your other obligations.

5. Come up with a holiday budget before you sign up for any plan

• Make a list of all the things you need and all the activities you intend to indulge in during your holiday, and how much they will cost. You can then do the math and see if you would be able to handle monthly payments if you take a BNPL travel plan.
• If the numbers look good and you can handle the monthly payments, go for it! If taking this holiday will cause you financial stress, postpone it until you are able to pay for it without straining yourself financially.

Below are a few examples of BNPL travel companies that you can check out.

a) Klarna

• Klarna offers a smooth and safe way to pay for your holiday. It offers an instant credit decision, flexible payments that work within your budget, and a choice of 3 different payment plans.

b) Afterpay

• Afterpay offers very friendly terms for anyone who wants to go on holiday. This company does not charge interest, only requiring that the loan amount be paid in 4 installments over a period of 6 weeks. Also, if you pay on time, you are not charged anything!

c) Affirm

• Affirm allows you to pay for your holiday at your pace if you take a BNPL travel plan from them. You don’t have to worry about hidden fees – only look at your budget and decide which payment plan works best for you.

d) Uplift

• With Uplift, you can buy your holiday upfront and pay for it in fixed monthly payments that you decide on based on your budget. You only need to pick the payment plan that suits you best.

Buy now pay later travel plans are great ways to pay for your holiday without having to pay large sums of money upfront. With a bit of shrewd financial planning, you can definitely make the most of a BNPL travel plan!