We all love the sound of a dream holiday – whether that’s a beach escape, a cruise or a backpacking journey.
Plenty of us are happy to fork out extra cash to take our trips to the next level, booking an upgrade of a lavish dinner.
But how many of us would take out a loan in order to finance such a luxurious experience?
It has now been revealed that Gen Z travellers are taking out loans for up to £25,000 to pay for their dream holidays.
The first app in the UK built solely for personal loans has just gone live and already received over £50 million in applications.
The app, called Kravings, allows customers to access loans ranging for important life purchases.
It provides a secure, end-to-end lending experience that lets users check eligibility, apply, access, and manage loans through a single mobile platform.
The platform has been overwhelmed with Gen Z (and Millennial) requests for loans ranging from £1,000 to £25,000 to cover items such as holidays.
We all love the sound of a dream holiday – whether that’s a beach escape, a cruise or a backpacking journey
It has now been revealed that Gen Z travellers are taking out loans for up to £25,000 to pay for their dream holidays
David Yalland, founder and CEO of Clay Technologies, the tech platform behind the Kravings app, said: ‘Younger borrowers aren’t reckless — they’re just out of options.
‘Many don’t want to rack up 25-30 per cent+ APR credit card debt or get caught in the cycle of Buy Now Pay Later.
‘Kravings offers a smarter option: fixed monthly payments, fair rates, and no hidden fees.’
He went on to say: ‘Our Gen Z and Millennial applicants are full-time professionals with strong credit scores and above-average incomes — they’re simply looking for more flexible, transparent ways to manage their cash flow.’
Holiday financing is the second most popular loan purpose for this cohort [Gen Z and Millennials] among Kravings applicants.
Plus, the average (requested) loan size for holiday financing is approximately £3,000.
Holiday loans actually come with some of the highest credit scores across all application types.
It scored similarly to weddings and auto finance, and just behind home improvements and debt consolidation.
Holiday financing is the second most popular loan purpose for this cohort [Gen Z & Millennials] among Kravings’ applicants
Gen Z, or Generation Z, is the demographic cohort generally defined as those born between 1997 and 2012.
As the first generation to have grown up with the internet, they are known as being particularly digitally savvy.
Their approach to travel and lifestyle differs from older generations.
For example, it has been revealed that Gen Z are ditching pints at the airport in favour of healthier options such as smoothies and juices.
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Gen Z taking out loans for up to £25,000 to pay for their dream holidays
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