Revolut is encouraging it, but a digital asset is a better purchase.

We got an email this week from Revolut, the newer deposit-taking neobank operating in Australia, and it’s worth talking about, not because it’s unusual, but because it’s a textbook example of a marketing message that sounds harmless and is actually a pretty terrible financial idea for most people.

The pitch was simple: apply for a personal loan of up to $50,000, comparison rates from 6.99%, terms of 1 to 7 years, approved and deposited into your account “instantly.”

The angle they lead with isn’t debt consolidation, isn’t a car, isn’t even home renovations. It’s a holiday. Spend it in 150+ countries, get airport lounge access, take your “travel buddy” along for the ride.

Why Borrowing for a Holiday Is One of the Riskiest Money Moves You Can Make

Let’s be blunt about what’s actually happening here. A holiday is a consumable experience. Once it’s over, it’s over.

There’s no asset left behind, nothing to sell, nothing that generates income, nothing you can claim as a business expense.

All that’s left is the loan, quietly accruing interest for up to 7 years, while the memories fade a lot faster than the debt does.

Do the maths on a 7 year term at even a modest interest rate and you’re not just repaying $50,000, you’re repaying $50,000 plus thousands of dollars in interest, for a trip that lasted a couple of weeks.

That’s the trade-off being marketed here, wrapped up in slick travel photography and phrases like “budget boost” and “stop putting that holiday on hold.”

What $50,000 Could Do Instead: Build a Digital Asset

Here’s the comparison we think is worth making. What if, instead of a loan for a holiday, that same $50,000 (or even a fraction of it) went toward building a digital asset, something that still exists, still has value, and can still generate income long after the initial spend?

A professionally built website with a full digital marketing setup, done properly, with

• WordPress,
• Google Ads,
• SEO,
• email marketing and
• social media

all set up and taught to you, isn’t wildly different in cost to that “instant” holiday loan. The difference is what you’re left with at the end.

• A holiday leaves you with photos and a debt
• A digital asset leaves you with a website, an audience, a marketing system, and the skills to run it

One depreciates to zero the moment it’s over. The other can keep paying you back for years.

 

This Is Exactly What Our Digital Marketing Courses Are Built For

If the idea of putting real money toward something that builds ongoing value appeals to you more than a loan for a fortnight overseas, our Your First Website + Complete Digital Marketing Training Course Package is built exactly for this.

It includes a professionally built website, full training and support across WordPress, Google Ads, Google Analytics, Mailchimp, Facebook and conversion optimisation, plus 6 months of mentoring from an experienced digital marketer to help you plan and measure your campaigns.

It’s a genuine alternative use of capital: instead of borrowing to fund a temporary experience, you’re investing in a business asset that you own outright, with no interest and no repayments hanging over it.

Worth noting too: interest on a loan is only tax-deductible if the borrowed money is genuinely used to produce assessable income, such as funding a real business or income-producing asset, not simply because what you bought happens to be “digital.”

 

A holiday loan doesn’t meet that test under any circumstances, which is exactly why the comparison matters.

And once that online business starts generating income, you’ll want to actually manage the books properly too, which is where a solid grounding in Xero or MYOB bookkeeping comes in handy, so your new asset doesn’t just make money, it’s accounted for properly from day one.

The Real Question to Ask Before You Borrow

Before you take on any personal loan, holiday or otherwise, it’s worth asking one simple question: will this money still be working for me in a year, or will it just be gone?

A loan for a holiday answers that question pretty clearly. A loan (or savings) put into a digital asset, a website, a course, a skill, at least gives you the chance of a very different answer.

This article is general commentary on marketing and business strategy, not personal financial advice. If you’re weighing up a loan or a big financial decision, it’s worth speaking with a licensed financial adviser about your specific situation.