I love family vacays. It is always a refreshing, relaxing, and bonding time. Okay. Personally, I have no experience with BTC backed loans, but I got the time to read up on it during the bankruptcy case that came up against Celsius and heard the stories of those who borrowed against bitcoin pre-bankruptcy case. One of the things they loved about Celcuis over their competitors was they had lower interest rates compared to other platforms. One person in particular didn't like that to borrow against bitcoin, one has to lock in more bitcoins than the amount you have to borrow. But I understand, because the borrower gotta be protected against market volatility.  

I wouldn’t touch any of these platforms tbh. If you need FIAT just sell your other assets if you have any. If you have everything in btc, then you are doing it wrong anyway. You need to diversify your wealth into different assets  and you should definitely hold some FIAT. 10% is a good start and 15% ideal imo. Not too much, not too less. It won’t drag your portfolio down and it will have enough buying power to purchase a vacation or some health emergency.

I never take any Bitcoin backed loans, so I didn't have any experience with that.

But, there's a good thing for you, you can ask a loan in this forum, just post the amount you required, rate, how long the loan and mention if you use Bitcoin as the collateral, post on this section Lending

I don't know if there is any such thing as bitcoin backed loans but I can speak of using your bitcoin as collateral when borrowing from someone who knows the values of your bitcoin but perhaps a lot of people wouldn't want that to be the case because it's might be hard to be sure you're the right owner of the assets in a wallet if evidence not tendered.

High interest rates and liquidation are the side effects of taking loans from those Defi so if you don't have any other source then you're left with no option than to take their offers.

But why would you have extra funds to fund your lifestyle? It's absolutely against the methodologies which we have in bitcoin AFAIK, you must have at least an emergency funds that can last for at least 3 - 6 months and if you did that you wouldn't be caught out with situations like this, and perhaps it seems yiu don't have another source of income to facilitate your desires, the solution here is find someone closer loan/ borrow from em then you pay back when the time is due.

Bitcoin has a volatile price and it's not suitable for a collateral, even though some lenders might accept it as a collateral.
I've never tried borrowing crypto because I don't need loans. I'm pretty OK financially and I hate being in debt.
Nobody is going to give you low interest rates, when it comes to borrowing/lending cryptocurrencies. The risk is higher, so the interest rates are higher as well. I remember some BTC lending platforms from 5 years ago(Like BTCJam, if I remember the name correctly), but all of them disappeared. I assume that the crypto lending business model isn't sustainable in the long run.
Why don't you try to get fiat loan or a credit card?

Sounds very risky to me. Many DeFi have questionable decentralization, while Wrapped Bitcoin require you to trust company behind it. I'm not expert, but have you looked for loan offered by conventional banking/financial service? Depending on where you live and financial condition, you could get offer which doesn't require collateral.

You can do this easily via the Binance, KuCoin, or other popular exchange platforms that provide lending features. They will give you a loan quickly with just your Bitcoin as collateral, and you can immediately get the money directly into your account. However, entrusting your Bitcoin to a third party means you lose control of your Bitcoin, and whenever they change their rules, your assets could be affected. So consider again if you want to borrow from a third party with your Bitcoin as collateral, because if you don't understand the risks then you will be the one who will be harmed.

First thing I want to ask you.  Is this REALLY a priority, can you not live with out this vacation while trying to save more Money for the next one?

I would personally not trust my Bitcoin with these.  Wrapped Bitcoin is not Bitcoin.  I would keep my Bitcoin in my Bitcoin Wallet only.  Not locked up on some Shit Coin platform that promises to give me returns.

Is there no way you can get money other than throwing your Bitcoin into the pot?

The matter of loans when it comes to your relatives or friends is from the fact that you're going to not just be loaning their money but also their trust of you and it's a really difficult thing to break for you because once you do break it, it's over for you, that trust won't be mended so easily once broken, that's why loans should be the least of your priorities, as best as you can, you should never consider it if you can find a way for yourself to make some money.