As the Australian economy begins to exceed pre-pandemic levels and optimism returns to our finances, it appears there are two popular paths we’re considering taking: spending on home or on travel.
While the latter may not have rebounded completely given the current restrictions on international travel and on-and-off again border closures, intent to spend on travel is up again according to Commonwealth Bank (CBA).
The latest CBA Spending Intentions report for May shows that travel spending intentions are higher year-on-year. All travel spending categories have, understandably, increased from May 2020, with a rise in visits to the following:
- Camper and RV dealers
- Motor homes and RV rentals
- Tourist attractions
- Trailer parks and campgrounds
And one personal loan lender is looking to assist Aussies by supporting their love of travel. Symple Loans announced a partnership with Qantas Frequent Flyer that sees customers earning 1 Qantas point per $1 borrowed (up to 50,000 Qantas Points), when approved for a personal loan.
Traditionally, travel rewards have been found through credit card rewards programs and even as a sign-up perk from some home loan providers. Personal loan borrowers may now be able to borrow money to fund their travels and earn Qantas Points in the process.
But even greater than travel is our desire to spend on homes at the moment. RateCity’s 2021 Survey found that almost half (48 per cent) of respondents did not have the funds for a holiday this year. Instead, respondents who opted not to travel were directing their savings into items for home (16 per cent) and home renovations (15 per cent).
CFO of online lender Alex, Craig Fenwick said of the split between travel and home spending: “Historically, borrowing for travel is often associated with big trips in Australia and overseas.”
“With borders still shut it could be some time before we see people borrowing for their next big overseas trip,” said Mr Fenwick.
“For Alex customers, small renovation loans are popular at the moment. Our competitive risk-based interest rates along with quick turn-around times allow our customers to focus on the new kitchen rather than the loan approval.”
Whether you’re contemplating a new kitchen appliance, a full bathroom renovation, or want to hit the road and “holiday here this year”, a personal loan may help you to achieve your financial goals.
To help you compare personal loan options, RateCity has listed some of the top-rated personal loans for June 2021.
RateCity’s personal loan leaderboard ranks the top five personal loans using Real Time Ratings™, a world-first rating system that ranks products as you use the site, making them as up-to-date as possible.
(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)