If you’re dreaming of your next holiday. Why not lay-by it?

Traditionally lay-by was limited to your wardrobe and home appliances but now the concept has been extended to the travel industry.

A recent study by Suncorp Bank showed one in three Australians don’t save at all for their holidays and one in five are still paying off their holidays up to three months after they return home. As a result, a handful of travel companies have introduced flexible payment options to help holiday-goers avoid post holiday debt.

Seabreeze Resort Samoa has introduced a monthly lay-by payment plan for all bookings, according to Global Travel Media. Seabreeze owner Wendy Booth said that the hotel introduced a lay-by payment plan as they knew it could be very daunting for people trying to save up the money to pay for a holiday.

“Often while saving, the money ends up being spent on something else and dreams get put aside with your chance of a romantic getaway disappearing,” Booth said.

The lay-by option is also available for those looking at purchasing expensive flights. STA Travel offers lay-by on flights so you can lock in the price when it’s hot with a deposit and pay it off over time.

As with all money saving products, it's wise to check the fine print so you know the terms and conditions of the pre-paid travel plan before signing up. And don't get caught out paying high international transaction fees while you're on holiday, look at prepaid travel cards and credit cards that have no or low foreign exchange charges before you go.

Dreaming of your next holiday? Visit Mozo’s travel money hub here to find the best travel money deals in the market.