Finally, summer is here in full swing, and many have either already gone on vacation or have it coming up very soon. Hopefully, you have many pleasant summer plans to look forward to, and perhaps even a vacation trip planned or already booked?
In our last newsletter, we mentioned that the economic situation in Sweden appears to be improving, and this is reflected in our travel habits this summer. The previous reduction of the policy rate has led to a decrease in household costs for loans and mortgages, resulting in more disposable income for consumption. This surplus is often used to plan trips, and more Swedes are planning to travel abroad compared to last year.
How people choose to use their travel budget naturally varies based on individual circumstances and preferences. Countries that are perceived as cheaper to travel to and stay in, such as Turkey, are particularly increasing in interest among Swedes. At the same time, other, more expensive destinations have also become more attractive due to favorable exchange rates. For instance, Japan, with its depreciated currency, has become a more affordable destination. Moreover, increased disposable income can mean the ability to invest in higher quality travel, with better accommodations, more activities, and destinations that offer more luxury and comfort.
Climate change and scientists' warning forecasts about extreme heat also make sustainability an increasingly important factor in travel decisions. A greater range of eco-friendly trips and destinations that offer sustainable tourism options can influence both the choice of destination and travel routes. Reports of an extremely hot summer around the Mediterranean this year also make it more likely that more people will choose to travel abroad outside the peak season. This, in turn, can affect the price of travel.
With a better economic situation, the ability to save money over time also increases. These savings can be used to finance future trips, which affects both travel habits and choice of destinations. Additionally, remote work has become more accepted after the pandemic, giving Swedes the opportunity to combine work and travel, for example, by spending the winter in a warmer country while working remotely.
Despite the increase in overseas travel, there is still a continued interest in vacationing within Sweden. For those who want to avoid extreme heat while also taking advantage of an improved economy, Sweden is an attractive option. After all, there are few things that beat the Swedish summer!
No matter if, where, and when you choose to travel, we hope you have a really wonderful summer! We at SaveLend are, as usual, available on weekdays and are here to help you with anything you need!
Here we present as usual the total average return for Balanced and Yield for July 2023–June 2024. The Balanced savings strategy has delivered an average return of 7.09% the past twelve months and Yield has delivered 8.12% accordingly.
Invite your friends and get a chance to win up to 40,000 SEK in a Yield depot! Participating in the competition is easy: log in to your account and retrieve your unique referral link. Share the link with your friends through any channels you prefer, and make sure your friends create an account and make a deposit by September 1st. The highest number of new accounts with deposits wins. Ten people will share the total prize pool, with the top winner receiving 40,000 SEK. Everyone who refers more than three friends will receive a consolation prize. Read more here!
On Monday, July 8, 2024, we will implement certain changes to the terms. Consumer loans with an 80% forward flow agreement will have an interest rate of 16.09%, while the corresponding rate for consumer loans with a 100% forward flow agreement will be 8.69%. This change is part of our efforts to achieve a clearer risk-adjusted return, where higher risk is rewarded with the potential for higher returns, and vice versa, to a greater extent. Another important measure to achieve this has been our work to reduce consumer loan losses. However, these changes have had some negative impact on the company's earnings. Hence, a small reallocation of the interest rate between the company and the investors will be made.