Aussies are ready to jet-set but have you got your overseas spending sorted?

By Sara Borman · · 3 min read
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airplane flying over sunset sky on an international flight as borders open

Since overseas borders opened in February 2022, Australians have embraced international travel with a renewed enthusiasm. 

May numbers from the Australian Bureau of Statistics (ABS) reveal that the pandemic halt on travel has begun to revert to pre-pandemic conditions as more and more countries ease restrictions. May 2022 saw the highest travel numbers in three years, with a monthly increase of more than 270,000 additional international departures. 

With even the last remaining borders beginning to open and testing requirements easing, travel hesitation seems to be a thing of the past. In support of this claim, NAB insights revealed that their customers spent $46 million on overseas travel in May 2022, with a total $157 million spent between the 1st of January and the 31st of May. 

Motivating the savings of thousands of Australians, travel is a major monetary decision. If you’re ready to jump on that next flight to Fiji, it’s important to get your spending plan sorted.

How can I fund my trip?

There’s no hard and fast answer to the correct way to spend money on travel. In an ideal world, we’ve got more than enough stretch in our budget to make room for that trip to Thailand.

If you need to supplement those savings, you might look to a travel loan or a travel-friendly credit card.

What is a travel loan?

A travel loan is a form of personal loan that you can use to pay for travel expenses - think flights, accommodation, transportation, food and travel insurance.

These are a great option if you have a set budget and know how much you want to spend. Looking for a fixed loan with a lower interest rate allows you to have a clear idea of how much you will be paying, provided you are on-time with repayments for the duration of the loan.

A personal loan might not be the right choice for you if you’re looking for a smaller trip or to supplement saved up money, as they tend to start at around $4,000. They are also approved on the basis of a credit check, which can be a factor to consider if you have bad credit or no credit.

Travel loans

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 236 personal loans.
Last updated 15 December 2024 Important disclosures and comparison rate warning*
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.75% p.a.to 26.95% p.a.
    6.75% p.a.to 26.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023 & 2024^'

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.

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  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.76% p.a.to 24.03% p.a.
    6.55% p.a.to 24.98% p.a.based on $30,000
    over 5 years

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.76% would cost $35,173.52 including fees.

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  • Low Rate Personal Loan

    Excellent Credit, $5,000 - $75,000

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 8.39% p.a.
    7.19% p.a.to 8.75% p.a.based on $30,000
    over 5 years

    Competitive low rates for borrowers with excellent credit on 1-7 year loans from $5,000 up to $75,000, plus free extra repayments. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

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What do I look for in a travel credit card?

There are many reasons you might choose to pay for a holiday via credit card - for the flexibility or the rewards on offer - but it’s important to carefully consider which credit card you choose.

Low or zero interest rates are a great option for travel spending, but often come along with hefty monthly fees or large late charges. If you are starting a new card, watch out for introductory offers that revert to much higher rates after the first period - especially if you’re planning to be away for a long time!

Keep an eye out for travel credit cards that offer a 0.00% foreign exchange margin, charging no additional fees on top of the foreign exchange rate. This allows you to spend with ease abroad.

Rewards are at their peak during travel. If luxury is a major factor for you, you might be tempted by rewards cards that offer perks like lounge passes, travel insurance or bonus points that can be used for flights and hotels.

Credit cards can be prone to complicated terms and conditions, so it’s important to be thorough before you make a choice. High foreign exchange margins, fluctuating interest rates and large annual fees are all things to consider.

Ready to take flight? Check out our Travel Money 101 and our guide to avoiding overseas fees to keep confident on your next trip.

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

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