You're dead-set on a holiday – but you’re not sure how to pay for it. Here are some suggestions to help you make the plane – or the train – more quickly.

Give me the main points

  • Saving to a 'Holiday' account is the time-honoured way to do things.
  • A travel loan can help you take advantage of specials and deals.
  • If you're disciplined, make the most of your credit card’s interest-free period.
  • If you’re well ahead with your loan repayments, a loan redraw is also an option.

You've thought about it, you've talked about it, you've dreamed it and now you're itching to book—now you're ready for that hard-won holiday. You've worked out where you’re going and what you’re doing when you get there—only now you have to pay for it all.

But there are more ways to pay for your trip than you think.

Save hard

Saving for your holiday helps you really feel like you've earned it. At least that's what grandparents have said since the dawn of time.

Certainly if you’re a good saver—and you're on a good income—this is the way to go. Set up a separate savings account, set up your direct debits each payday, and get cracking.

However, the downside of a savings-only approach is that it can take ages. In the meantime, you might miss out on cheap flights and bargain travel packages. Though one should never question the wisdom of elders, sometimes you want to hurry things along.

You might need that holiday sooner rather than later.

Apply for a travel loan

There are those moments, of course, when you just have to get away. It might be a pressing family emergency—or celebration—or it might simply be that you need a break. Perhaps you've saved enough for your flights, but you've still got to cover your accommodation and spending money (remembering that three cheap suits from Bangkok still cost a bit). Or maybe it's a last-minute holiday that sounds too good to miss. This is where a travel loan can help.

We offer loans for as little as $5000 at competitive rates. You can also choose a loan term that'll suit you.

Use your credit card

If your credit card has interest-free days, or you’re just good at paying it off, think about using it to pay for some (or all) of your trip.

If you use one of our premium credit cards or flybuys Rewards credit card, you can also get complimentary travel insurance. Spend just $500 on your flight (or train, or bus, or ship or accommodation) on your credit card and you'll qualify. Please view our NAB Card Insurance Policy Information Booklet for more info.

You can also—over time—pay for your trip with frequent flyer points. Put your everyday purchases on your NAB Velocity Rewards Card or NAB Qantas Rewards Card and start acquiring points. Then use them!

Redraw from your loan

Are you ahead with your scheduled repayments on your home loan? If you’ve put in a bit extra each week and are in the black, you could consider a loan redraw.

While it's a less common way of paying for a trip, it’s money you’ve already managed to set aside.

Depending on the loan, there can be restrictions. For instance, you can’t redraw from a fixed-rate loan so check your eligibility with your banker.

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