Should I take out a vacation loan for post-Covid travel expenses? | Smart change: personal finance

What was once meant to be a relaxing and enjoyable getaway after Covid can quickly turn into a costly decision that can hurt your credit and your wallet.
4. You can put yourself in a debt trap
If you take out a vacation loan, you can check off an item from the bucket list now, but find yourself in a debt trap later. You can avoid this by following responsible lending practices; However, you may find it difficult if you need more money before your original loan is paid off.
For example, let’s say you want to take a family vacation every year. If your loan has a two-year repayment term, you’ll still owe money when your next vacation comes the following year. This can make it difficult to purchase another trip, so you might be keen to take out another loan to help cover the costs.
Not only will you have one year left on your first loan, but you will also need to make payments on your second vacation loan if you decide to take one. Using loans in this way can quickly increase your debt, making it difficult to pay off your monthly payments and leaving you in a spiraling debt trap that you can’t seem to escape, not where you want to be.
Alternatives to vacation loans
The risks associated with vacation loans are not worth the financial consequences. There are other strategies you can use to save money, take a dream vacation, and avoid taking out a personal vacation loan, including: