Interest-free holidays offered by travel agency Escape Travel

TRAVELLERS can book interest-free holidays in the same way you can buy fridges and televisions under a travel agency's new deal.

Holiday-makers will be able to book trips six-months interest-free. Picture: Supplied

TRAVELLERS will be able to book interest-free holidays in the same way you can buy fridges and televisions under a new deal from one of the country's biggest travel agencies.

Escape Travel has introduced the new six-month interest-free finance option, which lets travellers pay off their holiday in a series of repayments.

The deal is available on holiday packages over $999 when they apply for a Lombard 55 Visa card.

Daydream Island in the Whitsundays also launched an interest free holiday marketing campaign last year and online company MyHolidayCentre has a similar offer on holidays to Fiji and Bali, but this is the first major agency to offer the deal nationwide.

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Escape Travel general manager Mark Hodgson said many people couldn't afford to pay for trips upfront and it was more manageable to make weekly, fortnightly or monthly repayments.

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"You can purchase a lot of products, such as white goods and TVs, on interest free finance and we wanted to bring that flexibility into travel," he said.

"We have had finance product in the past but it was interest variable straight away so people were paying interest from the moment they took out finance.

"We think it's pretty important, particularly for families who are planning a holiday.

"Quite often in travel the earlier you book the cheaper the price so this allows people to secure the cheaper price and have time to pay it off."

Mr Hodgson said the repayments default to a "credit card-style" interest rate of 25.9 per cent after the six months are up.

"Most customers in travel will book three to four months in advance so we didn't feel the need to go beyond the six month interest free period," he said.

But Tom Godfrey, who is spokesman for consumer advocacy group Choice, said people should beware the charges could add up.

It costs $60 to apply for the Lombard credit card which has monthly account fees of $2.90 as well as other fees and charges.

"The deal isn't as great as it sounds," he said.

"My advice would be to save up and put the money in a savings account instead and you will be much further ahead."