If you take out a loan to book a holiday early it could save you more money in the long run than if you paid for it later without using the loan.

But I still stand by my earlier point that this feature only really makes sense if people can set a target date for their pot goal.

(Alan) #123

As someone that once paid for holiday on my credit card, expecting to pay it back quickly, then to break my foot and be out of work. Paying interest on a loan for a holiday I’d already had (where it rained) was soul destroying, i was really depressed about it and wished I’d never bothered with the holiday.
If anyone is ever tempted to do the same, please reconsider. To use it as an example in an advert I find quite upsetting from a company that set out to be different, to be a good bank.


That implies that people are living on the financial edge - Not to mention the numerous cheaper options available to people (when considering the APR), and finally… This

(Alan) #125

I’ll just add that the credit card was 4% cheaper than this loan and although it’s sad to say this, one of the happiest moments of my life was when I cleared it. It really affected us.
The only way I could pay it off while struggling to work, was to exist rather than live for a whole year. My biggest regret

(Jordan) #126

And I think this is why the FCA and FOS are very tight on HCSTCs because it can really adversely affect people if used incorrectly, and by advertising it in a place where it shouldn’t really be increases the risk that people get into some real trouble.

  • Not necessarily. Some people might put a fixed amount in their savings/investments and don’t want to use that amount to pay for a holiday early.
  • I’m sure there are better loan options, I was mainly talking about the act of taking out a loan to pay for a holiday.
  • It might not work for all people in all jobs - just because similar didn’t work for @AwesomeAlan doesn’t mean it won’t work for others. Each person can make the choice themselves

  • If someone doesn’t want lending promotions, they can disable them from the app Settings.


To be fair, I’ve just looked into it a bit more, and didn’t realise there was such a big “loan for a holiday” market - Call me sheltered, but I’d never even consider it.

(Alex Sherwood) #129

Exactly you might have money to hand, other people don’t.

((╯°□°)╯︵ ┻━┻) #130

I don’t understand why are people arguing whether Monzo should offer a loan to achieve your savings goal? Loads of companies push finance these days, no matter what size the loan:

  • Cars
  • Holidays
  • TVs
  • Mobile phones
  • Sofas
  • Clothes

It has been like this for as long as I can remember.

Some people like to save before hand and buy outright, others don’t mind getting a loan and paying off a bit each month. Each to their own. We shouldn’t be arguing over what is acceptable for a loan, holiday or not - that is for the individual to decide based on their circumstances.

I’m in agreement that it could be better placed but there is nothing wrong with advertising that you’re eligible for a loan, in my opinion.


Isn’t the whole point of Monzo to change this though. To stop these predatory companies pushing you expensive loans getting you into debt and to control your money better?

((╯°□°)╯︵ ┻━┻) #132

One dismissable popup, come on. That’s a bit extreme…

(Alan) #133

The difference is monzo elevate themselves as being different.
The excuse that some people need to get a holiday loan as they don’t have money is a void one. If they don’t have money now to save for a holiday, then where will the money come from to pay for a loan? Buy now pay later is a deception, that the old banks have made billions from. I learnt the hard way. Monzo seem to want to profit from another generation doing the same


Yeah, again, it’s not the specifics of borrowing for a holiday - That was just a byproduct of the initial conversation of where the loan was being advertised.

At the risk of repeating what has been said a thousand times, it’s where this “friendly little encouraging” advert has popped up which is the issue.

I have a “you can borrow £1,000” in my Monzo app already - If I need it, I know where it is, and I can take it out.

I see little reason to encourage borrowing in the place where people are trying to save (life threatening examples aside).

(Alex Sherwood) #135

If you don’t have time to save up for a holiday & you need to take a break, this is perfect.

((╯°□°)╯︵ ┻━┻) #136

I think we’re going to have to disagree.

I don’t see any issue with booking a holiday and paying it off over a period of time. It’s just the reverse of saving up but you pay a little more for getting it sooner.

It’s not just banks either. Every company offers this - you can even buy clothes on by now pay later :roll_eyes:

I personally wouldn’t do the latter but I can see situations why others might.

(Alan) #137

So that next year you’ll have even less time as you’ll be paying off your debts too??

(Richard Cook) split this topic #138

A post was merged into an existing topic: Removed Posts - 5/3/19

(Richard Cook) split this topic #139

A post was split to a new topic: Removed Posts - 5/3/19

((╯°□°)╯︵ ┻━┻) #140

You can start paying it off before you go away… have a think about it from some other perspectives with people in different financial situations. Not everyone can scrape together thousands of pounds before the summer for a well deserved family holiday.

They don’t have to go on holiday every year either!

(Splodf) #141

A solution, I can thinly agree with.

Perfect is a poor choice of words.