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I've planned to have a vacation, but for some reasons didn't put much money for that and now I see that the only mean to have a trip is to borrow some money for it. Should I do that or this is inappropriate?

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Dilemma I have here is that I will have significant shortage of expenses in summer, and probably will have quite more money than I need for a trip, but now, I don't have them and because I didn't save enough money and recently bought tickets and equipment I even experiencing insufficiency of money right now.

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Tickets can be returned almost for no charge.

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    How confident are you to save sufficiently in summer. Also whats the amount of loan you plan as a percentage of your monthly income and as a percentage of available cash(monthly income less of mandetory expenses). If the numbers are good, then it would make sense for the loan
    – Dheer
    Commented Apr 27, 2011 at 11:32

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Some very general advice.

Lifestyle borrowing is almost always a bad idea.

You should limit your borrowing to where it is an investment decision or where it is necessary and avoid it when it is a lifestyle choice. For example, many people need to borrow to have a car/house/education or go without. Also, if you are unemployed for a long period of time and can't find work, charging up the credit cards seems very reasonable.

However, for things like entertainment, travel, and other nice-to-haves can easily become a road to crushing debt. If you don't have the cash for these types of things, my suggestion is to put off the purchase until you do.

Note: I am not including credit cards that you pay off in full at the end of the month or credit used as a convenience as "borrowing"

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No is and should be the standard answer. When your vacations have been planned ahead, why didn't the money saving start ? You should treat it as a punishment and forgo your vacation.

But human beings aren't always that sensible so we go for plan B. Did you purchase your tickets/hotels or anything ? If yes, then check out the cancellation charges. Does the cancellation charges exceed the borrowing amount, then probably borrow and go on a vacation. But you should also consider, how the borrowed amount is to be paid. Is it within your means and your timeframe ? Does paying back the amount now, hamper your next vacation plans or other required spendings ?

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Never borrow money to go on vacation. It is not worth getting into debt for one week worth of fun. Remember a vacation is a 'want' not a 'need'. You want to go on vacation but you don't need it! Wait until you are able to pay for it in cash and save up then go on your vacation! You will thank me in the end.

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As a personal advice, its best avoided to take a loan for a vacation.
Having said that it would also depend on the amount of loan that one is planning to take and the duration for repaying the loan and the rate of interest.

One has to also consider if you borrow; when you are paying the loan back, is that money comming out of something else that was budgeted. Say paying this loan means that you can't save enough for the downpayment for your house you plan to buy next year or will mean less contributions to retirement savings. If so then its definately advisable to forego the vacation travel. You can still take the holiday and enjoy at home doing something else that of meaning.

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