The True Cost of Financing a Vacation

Personal loans for vacations typically carry 8–18% APR, and many charge origination fees of 1–8%. This means you'll pay more than the vacation itself. A $5,000 trip financed at 12% over 2 years costs roughly $5,625 — that's a $625 premium. Setting aside $250/month for 18 months lets you pay cash and save the interest entirely.