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BRAND POST: While those eager to travel had hoped that international borders would be open across the world by the end of this year, this is looking more and more complicated - and for those game enough to take a flight, prices have risen to all-time highs as demand outstrips supply.

As a result, the best way to holiday is in our own backyard - be it at one of our many holiday destinations or doing a ‘big lap’ of the country (border restrictions permitting.)

Travelling domestically is one of the safest ways to travel - and if you want to take the Aussie trip of a lifetime, you should consider a leisure personal loan.

So much on offer
State and Territory Governments are conducting a charm offensive on Australian holiday makers encouraging them to spend time in the little explored regions of our own country. Western Australia’s Golden Outback is being spruiked as a must-see destination, with 21 epic road trips on offer. The Northern Territory Government has also awarded Indigenous Australian tourist operators grants to help people seek authentic experiences with Aboriginal people on country.

All of this can cost a lot - and one of the ways to find yourself a great Australian tourist experience is to explore as much as possible. Leisure is a non-essential purchase (not in the way electricity and food is) and many people often spend up big on their credit card - though it’s certainly an option, it’s one that will cost you more in the long run.

Why a personal loan is better than credit cards
A credit card is good for occasional small purchases when you don’t have the cash on hand - and even better if you can pay for the purchase within your interest free term (which is usually 40-55 days). Otherwise, you’re hit with huge interest as soon as it ticks over into the interest period.

Personal finance expert Bill Tsouvalas, Managing Director of finance broker Savvy says that putting $5,000 on the credit card and only paying the bare minimum can cost you more than double that amount over time.

Tsouvalas advises “credit cards are convenient, but they also cost a lot for the convenience.

“If you spend $5,000 and your interest rate is 22% p.a., which is at the modest end, you’d end up paying $11,460 in interest if you only paid the minimum amount, since the minimum means you won’t pay off the entire debt for many years to come! Not only that, you’re also slugged with annual fees and other account keeping charges, even if you never use the credit card again.”

Tsouvalas says taking out a personal loan is more cost-effective and manageable, as repayments are fixed and each month or fortnightly payment you make gets you closer to a zero balance.

He notes “taking out the same amount for a holiday with a comparison rate of 9.9%p.a. means you’ll pay back $6,359 over a five-year period. That’s less than the monthly minimum on your credit card and almost a tenth of the interest, standing at $1,349.”

Tsouvalas says that you should also look for comparison rates when rate shopping, adding “these include most fees and charges included in the interest rate so it’s easier to contrast two loans. If you have trouble looking for loans or just need some help, it’s best to consult a broker or financial professional before making a decision.”

Image: Kakadu National Park.

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