Vacations are meant to refresh the mind and create beautiful memories. Yet, for many, those memories are coming with a heavy price tag that lasts long after the holiday ends. In recent years, the trend of borrowing to fund travel has become increasingly common. Banks, credit card companies, and travel platforms encourage customers with offers of instant loans, easy EMIs, and buy-now-pay-later schemes. The booking process looks effortless, but the repayment journey often turns into a financial burden that lingers for months or even years.

The biggest issue with holiday loans is that they do not create value. When you take a home loan, you build an asset. When you take a business loan, you invest in income-generating opportunities. Even a car loan adds convenience and sometimes supports productivity. But a holiday loan is different. It funds a memory that vanishes in days, while the debt remains.

This problem is not new. More than a decade ago, a bank employee recalled being stunned when a client asked for a loan of eight and a half lakh rupees for a trip to New Zealand. At that time, it looked unusual. Today, it has become normal. According to surveys, nearly one in three personal loans in India is now taken for holidays. That number has even overtaken loans taken for medical expenses or home renovation.

Why are so many people falling into this trap? The answer lies in both marketing and psychology. Travel agents and credit card companies present debt as convenience. A family package is advertised with the option to “pay in simple EMIs.” A swipe at checkout converts your bill into instalments without you even noticing. Buy-now-pay-later schemes add another layer of temptation by making borrowing look casual and commitment-free. Add to this the influence of social media. Seeing friends and colleagues post photos from Europe, Bali, or Dubai creates pressure. Vacations are no longer just about rest; they have become symbols of lifestyle and status.

The financial consequences, however, are serious. A two lakh rupee trip booked on a credit card can balloon to two lakh sixty thousand or more if not cleared in time, thanks to annual interest rates of over thirty percent. Even a personal loan at fifteen percent interest adds forty to fifty thousand rupees in cost, not to mention processing fees and late penalties if repayment falters. This means the actual cost of the trip is far higher than what was initially planned.

The hidden cost is even larger. Every EMI paid toward a holiday loan is money that could have been invested. Over time, investments grow through compounding, building long-term wealth and financial security. By using that money to repay holiday debt instead, individuals are not only losing money today but also giving up on the wealth they could have created in the future.

There is also an emotional dimension. A vacation should bring joy and lightness. But when it is funded through loans, the bills that arrive later can turn happy photos into reminders of debt. Instead of looking back at a trip fondly, people end up associating it with stress. This emotional weight is often ignored when signing up for loans, but it hits hard once repayments start.

The numbers reveal a national habit. Research shows that more than a quarter of Indians now borrow to travel. For lenders, it is a growing business segment. For borrowers, it is a growing financial risk. The convenience of a swipe today creates a liability that quietly follows you back home, taking away the peace of mind that the holiday was meant to bring.

A trip lasts for a few days or weeks. The repayment, however, can last for years. And with every EMI, the true cost of the holiday becomes clearer. You are not just paying for experiences once; you are paying many times over with interest, with lost opportunities, and with the unease of knowing that yesterday’s fun is today’s liability.

Before signing up for a holiday loan, it is worth asking one simple question. Am I willing to keep paying for yesterday at the cost of tomorrow? If the answer is no, then the wiser choice is to plan, save, and travel debt-free.

 

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