We all need a break from work from time to time. After all, what’s the point of earning a huge salary or generating a high revenue from a business when you don’t use it for your own pleasure?
Speaking of pleasure, Holidays offer a great opportunity for travel fun, especially in foreign countries. After all, nothing beats the experience of learning about new cultures, people, traditions and beautiful places that are thronged by people from all corners of the world. However, what about the money?
Financial Planning for Holidays
Foreign trips can be expensive. Depending on where you are going, the two-way flight tickets can alone be in lakhs. Then there are other major expenses such as accommodation, dining, local traveling, shopping, etc.
A personal loan is a good option for funding your foreign trips. They come with low interest rates, can be obtained easily, and you don’t even need to offer collateral. Besides, a number of public and private banks offer special travel loans that are easily affordable including packages for Thailand, Spain, UK, etc. But what about the foreign currency?
You need the local currency of the country you are visiting, at least of some amount or the other. It’s natural if you think of only these 2 options- cash and credit cards. So, which one is better? The answer, unfortunately, isn’t quite simple.
Talking Money: Cash Vs Credit Cards
One thing should be absolutely clear to you, which is that you must have an appropriate amount of cash in the foreign currency depending on the foreign country you are going to. This is because you can’t pay for everything through online or card-based payment methods. Plus, you also need some cash in case there is an emergency and you don’t have other means of payment. So, in other words- carrying some amount of cash is a must.
Now, lets’ come to credit cards. Shouldn’t they offer more convenience and safety than physical cash? Well, they can but at a huge cost.
The thing is that when you use a credit card in a foreign currency then you can easily end up paying a huge currency conversion fee every time you make a payment. If you need to withdraw cash using the credit card, then the service fee charged can be as ridiculously high as 4%! Thus, it’s not a good idea to use a credit card.
Enter Forex Card
An alternative to a credit card which is also highly recommended by financial experts is a forex card. It’s a type of prepaid or debit card which is loaded with the foreign currency of your choice. So, it’s just like any regular debit card that you use, but contains balance in a foreign currency.
The reason why getting a forex card is a good idea when going abroad is that it eliminates the hassle of carrying a large amount of cash and is cost-effective at the same time. This is because compared to credit cards, forex cards don’t incur currency exchange fees as they are preloaded with the foreign currency. What’s more, you can load multiple currencies on a single forex card depending on its type.
Another big advantage of getting a forex card is that you can apply for it at a time when the currency exchange rates are the lowest. So, the money is locked at the exchange rate of that particular time.
The majority of top banks in India including Axis Bank, ICICI Bank, HDFC Bank, offer forex cards. You can compare their application process, fees involved etc. and get yours well before in time so that there are no last-minute losses.
Summing it Up
Your holidays can be a lot more comfortable and cheaper if you plan accordingly. Remember,Apart from fung arrangement There are other things to take care of as well including travel insurance, foreign currency(s), flight bookings, etc. And the sooner you get these over with, the more comfortable your experience shall be. Happy holidays!
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