How To Make Your First Foreign Trip More Enjoyable, Care-Free!

Funding your holiday overseas is easy due to the funding options, and the credit card. But do scout for low rates, and bargains 

- Clifford Alvares

Your first foreign holiday ought to be an enjoyable, and care-free, time — of fun and adventure. But, though it’s easy to keep anticipation and excitement high, you are most probably keeping a close watch on your wallet, too. Foreign holidays don’t come often and, yes, aren’t exactly inexpensive, either.

A typical US trip — a 6-day, 7-night package — could start at a price tag of Rs 1,13,785 an adult, which probably includes the usual features such as tickets, visa, boarding, meals and sightseeing. If you want more adventure (and include some exotic destinations or an Alaskan cruise or a trip through the Grand Canyon), the tab could rocket up substantially. And, that does not include some of the expenses you would naturally incur on souvenirs and gifts for family and friends back home.

As these holidays go, you don’t want to miss out on the fun. So, you have to trawl through the tedium of financing your tour pretty early, and keep a buffer for spur- of- the moment spending. A typical family of four could require about Rs 4 lakh at the least for a decent top-end holiday to a foreign destination.

The Travel Finance Checklist

You can finance your travel through personal loans or credit card EMIs 

Normally, the interest rates on a personal loan vary between 12 and 18 per cent. However, it could be higher for people with low credit history 

Credit card EMIs also come handy and the cost of interest may be slightly higher than a personal loan 

Watch out for processing fees and prepayment penalties which are normally in the range of 0.5-2 % 

Planning a travel holiday in advance? Opt for a recurring deposit with a bank in which the cost of travel is split in 12 equal installments 

Keep a tab on interest rates for large-ticket items like foreign travel where the total interest cost adds to significant sums