Planning to pay for a well-earned break

26 July 2010

Images of palm-fringed beaches, turquoise seas and beautiful people sipping pina coladas against cloudless skies can be too much of a temptation for some consumers.

Before they’ve weighed up the financial implications they’ve signed on the dotted line and are buzzing with excitement about their forthcoming holiday.

And why not, you may say. Going on holiday is a high point of the year for most people. But many decide the need for a break outweighs the need for financial caution and borrow to fund their get-away.

And with one in three borrowing to pay for their break this summer, this could lead to a bigger hangover than holiday cocktails.

Planning can help avoid expensive emergency measures to pay for holidays. And when it comes to protection, having a robust plan to ensure the family is covered could be the difference between survival and ruin.

Irrespective of their financial situation, many people feel they have to take a holiday even if they can’t afford it. So borrowing is a tactic they are prepared to use even if it means taking an extra few months to pay it off.

But how would they feel if their income stopped due to illness or redundancy? How could they pay for their break?

This is a good time to talk to clients to ensure their all-important holiday is something they can look forward to no matter what the future brings.

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