Every ninth person plans to take out a loan for a trip to the sea
About 7% of Russians this summer plan to take out a consumer loan for a period of one to three years to pay for a long-awaited vacation, it follows from survey of a popular platform. Another 5% of respondents admitted that they intend to buy a tour using a credit card with an interest-free period of up to three months. In fact, every ninth Russian plans to purchase a trip not with previously accumulated funds, but with borrowed funds. Why do people go into debt for years to get two or three weeks off? Is a vacation on credit a step towards a financial abyss or a vital necessity? “MK” looked for answers to these questions from experts.
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“It’s difficult to answer this question unambiguously: everyone has their own situation. Considering the high rates on consumer loans, taking them on vacation does not seem like the most financially savvy thing to do. However, we must also take into account the high stress Russians experience due to the constantly changing reality. There may also be uncertainty about the future, a desire to enjoy the “here and now.” In addition, the key rate of the Central Bank at the upcoming meeting, according to most analysts, should increase by 1-2 percentage points. Therefore, many people want to be in time before this increase — then the interest on the loan will be even higher.
The situation is also affected by the significantly increased cost of travel both within the Russian Federation and abroad. Not all Russians have seen comparable income increases. There are categories of people whose income remains unchanged for a long time, in contrast to the prices of goods and services. At the same time, the request for leave from the majority of workers has not decreased. Over the past 4 years, there has been a pandemic, the cancellation of direct flights to many destinations, the rise in the value of foreign currencies, inflation — all this has postponed long-awaited vacations for many citizens. Of course, going somewhere to rest is not a primary need, but many are simply tired.
Meanwhile, a person simply needs to rest, otherwise there will be a process of burnout, decreased efficiency at work, depression, and so on. But it would be more correct to choose the vacation format that best suits your financial capabilities. Including vacation homes and travel destinations in the region where you live.
If you follow the principle of “we live once,” you may face the fact that the quality of your life for a long period may decrease dramatically — after you follow the lead their own financially unsupported desires.”
“The desire to maintain the level of consumption and take out loans for something is a certain human reaction to a stressful situation. When a person does not want to save, but considers it right to borrow money from the bank but afford the purchase, this indicates his unwillingness to accept reality. The Russian consumer has been living in difficult conditions since 2020, when the pandemic began. During that period, there was a sharp increase in spending on online entertainment, games, alcohol, goods for the garden and sports… This was justified, since a lockdown was declared in the country — people were looking for ways to diversify their leisure time. About the same thing is happening today: people see an increase in the cost of tickets, accommodation and tours, but not everyone wants to give up their habit of going on vacation abroad or traveling around Russia. And therefore we are ready to take on new loan obligations.
But it’s worth noting that not everyone takes out loans for vacations. According to some reports, about 70% of Russians said that they will not travel outside their region this summer. They choose to relax in the country, in the countryside, travel to nearby cities or to nature in their car. This also clearly demonstrates the change in consumer behavior in recent years: the desire to save, the transition to a crisis consumption model (save more, spend less).
It is unwise to take out a loan for a vacation if you know for sure that it will be difficult for you to pay it back if there is no financial safety net. Then you should refuse the loan and choose an economical vacation option. This could be a trip to the country, to a tourist base, or a tour of locations in your region.
You need to have a rest, but you should plan your vacation based on your real financial capabilities. Otherwise, the vacation will turn into a new level of stress when the understanding comes: you have to pay the loan, but there is no money for it. It’s better to avoid this and make informed decisions.”
“The idea of taking out a loan and having a grand holiday, despite financial difficulties, is extremely risky. The economic situation may change for the worse, and such loans may become an unbearable burden. It is better to save money and plan a vacation based on real possibilities.
What can be done in advance? Determine the amount you can save monthly for vacation and start saving.
Try not to take out loans for vacation so as not to increase your debt load. In general, the fact that a person cannot afford to go on vacation at his own expense is an indicator of financial instability, and it is worth carefully weighing all the pros and cons before deciding to go into debt before going on vacation.”
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“I see two main reasons why Russians take out loans for vacation. The first is due to the fact that spending on summer vacations exceeds the financial capabilities of the family. Given the high key rate, which makes consumer lending extremely unprofitable, a dangerous situation is created when a vacation takes only one or two weeks, but you have to pay for it over several years, significantly overpaying and denying yourself something necessary. In this case, I would recommend considering alternatives to an expensive vacation. That traveling abroad (according to opinion polls, they are chosen by 18% of Russians), or vacationing on the Russian sea (preferred by 44% of compatriots) cannot be called budget options.
The second is due to the fact that the decision to a vacation may be taken spontaneously, and the family does not have the appropriate financial savings to implement it. According to experts, on average a Russian needs to save for 6 months this year to secure a summer vacation. That is, it can be classified as a large projected expense. Given this approach, you should start saving for vacation around the beginning of the year. Then this will not result in an unexpected summer loan obligation that will put a debt burden on the family. By the way, it’s worth booking hotels with tickets in advance, which will allow you to save money.”