Vacationing and having debt

[kamik86]

I took my last vacation with some credit card debt and my next will as well. We messed up a bit and got into a bit of debt... then had the opportunity to go to England and I have always wanted to go so we are taking it. The CC debt is small and managable. It is also at 0 interest at the moment. We are making the payments on that while saving for the vacation and will pay the card off before the interest thing ends. Our only other debt is a mortgage and my student loans. No car payment. We aren't big into cars.

Oh also since my DVC sale got an offer we accepted unless something happens to make that fall through the CC debt will be paid off, the trip fully funded, and we should still have several thousand left to put towards the mortage, student loans, or other savings... So yeah really not worried.

 

[AutismMom2006]

I think each family has to do what is best for them. If we waited until we were 100% debt free to go on vacation our kids would be in their 30's by then, and I want to enjoy one or two trips while they are little. We are making progress getting our situation right -- using cash, paying off debt, building up savings and saving up to pay cash for our trip.

 

[FINFAN]

we have traveled w/out debt, w/debt and 2x's when the trip added debt. If we had waited until our house, cars, college were paid off, the only vacation we would have ever taken was from the kitchen to the back yard. Our kids would be in the late twenties before we could have taken a family trip. I can't enjoy my vacation from the inside of an urn, so we travel (within reason) once every 2 years, and twice if we can pull it off. I find my mental health is more important than my bank balance, especially since I am turning 54 next month..my days of being active and able to travel easily are starting to stare me in the face.

 

[FINFAN]

I think each family has to do what is best for them. If we waited until we were 100% debt free to go on vacation our kids would be in their 30's by then, and I want to enjoy one or two trips while they are little. We are making progress getting our situation right -- using cash, paying off debt, building up savings and saving up to pay cash for our trip.

lol...just posted the same

 

[BCV2003]

I make it my goal to try to fund my Disney trips with other sources. For our trip in October, our rooms are covered by our DVC (DVC is paid off and just have our maintenance dues year), Flights are covered by SW points, Tickets we have 10 day non-expiring tickets purchased last year that will last us a few more years, so all that is left is dining and incidentals. For the dining and incidentals, I get awards at work that can primarily only be cashed out for gift cards, I have $300 in rewards saved already and expect a few hundred more so that will come close to covering everything else if not all of it depending on the awards I get. It at least makes me feel like my trips don't cost me much at all.

 

[threeboysmom]

I personally could not take a vacation and enjoy myself if I had credit card debt. Pay off the credit card in full and then enjoy a vacation.

I think the more telling sign of whether to take that vacation or not is how you will pay for it. If you don't have the cash for it and are charging the vacation to a credit card, then no, you absolutely should not be taking that vacation.

 

[Nebraska_Disney]

I personally could not take a vacation and enjoy myself if I had credit card debt. Pay off the credit card in full and then enjoy a vacation.

I think the more telling sign of whether to take that vacation or not is how you will pay for it. If you don't have the cash for it and are charging the vacation to a credit card, then no, you absolutely should not be taking that vacation.

100% spot on !

 

[Nebraska_Disney]

Debt is debt. Some people justify it, calling it "good" or "bad" but all debt is money that you are losing each month due to not living within your means, plain and simple.

There is a reason why people have debt, and mostly it is having too many "wants" compared to "needs" . Sure, a place to live is a need and a mortgage is debt that many have (myself included) but you need to do your best to cancel even that debt as fast as you can. No 30 year mortgages (go with 10-15 years) and even then, pay them off early. Look at your mortgage statement, and see how much goes to interest every month and add up what that is over 5 years. It will scare you. Credit cards should only be used if you are paying off the balance every month in full, don't fall into the trap they can create. Have money budgeted for emergencies, then start a vacation savings plan. I'd argue that most people with debt don't have a budget at all, which is not a great way to live.

I could not go on a vacation knowing that by the time I paid for it, it would have cost way more than what I had spent. Interest is only good when it is working for you, not against you. We go on a big vacation about every other year, and they are paid in full prior to us walking out the door. If this is not possible, we scale back our trip to what we have saved for it.

Finally, pay yourself first. Your retirement savings and emergency savings should be addressed every month, like clock-work. When you get a raise or bonus, allocate that money to making sure things are taken care of. It is possible, but for many it will be hard lifestyle change.

off my soap box now.........

 

[mi*vida*loca]

If we waited until we were debt free to go on vacation we would never go. I have no regrets.

None of our vacations have ever been put on a credit card. I pay cash for all vacations.

 

[Ngwira]

Debt is debt. Some people justify it, calling it "good" or "bad" but all debt is money that you are losing each month due to not living within your means, plain and simple.

There is a reason why people have debt, and mostly it is having too many "wants" compared to "needs" . Sure, a place to live is a need and a mortgage is debt that many have (myself included) but you need to do your best to cancel even that debt as fast as you can. No 30 year mortgages (go with 10-15 years) and even then, pay them off early. Look at your mortgage statement, and see how much goes to interest every month and add up what that is over 5 years. It will scare you. Credit cards should only be used if you are paying off the balance every month in full, don't fall into the trap they can create. Have money budgeted for emergencies, then start a vacation savings plan. I'd argue that most people with debt don't have a budget at all, which is not a great way to live.

I could not go on a vacation knowing that by the time I paid for it, it would have cost way more than what I had spent. Interest is only good when it is working for you, not against you. We go on a big vacation about every other year, and they are paid in full prior to us walking out the door. If this is not possible, we scale back our trip to what we have saved for it.

Finally, pay yourself first. Your retirement savings and emergency savings should be addressed every month, like clock-work. When you get a raise or bonus, allocate that money to making sure things are taken care of. It is possible, but for many it will be hard lifestyle change.

off my soap box now.........

I respectfully disagree with the first part of your response. When you have six figures in student loans based on your college/graduate school education, that is certainly NOT a want. That was a need, the need to want to better yourself and further your education. Also, when you need to live somewhere and you buy a sensible house and take out a mortgage, that is NOT a want or "living above your means". You need to live somewhere and in certain areas, buying a house is cheaper than rent. Everyone can't afford to pay cash for their homes. My point is, debt is necessary sometimes. You can't just paint a broad stroke and categorize all debt as "bad" or as a result of "living above your means".

We have mortgage and student loans, and we live frugally for the most part to take nice vacations. They are paid for in cash, but I will be darned if I didn't take a vacation because of debt. YOLO, kwim? There are ways to vacation without breaking the bank. Spending frugally in most areas to spend lavishly in others..travel is that area for us. Moderation is key.

 

[Nebraska_Disney]

I respectfully disagree with the first part of your response. When you have six figures in student loans based on your college/graduate school education, that is certainly NOT a want. That was a need, the need to want to better yourself and further your education. Also, when you need to live somewhere and you buy a sensible house and take out a mortgage, that is NOT a want or "living above your means". You need to live somewhere and in certain areas, buying a house is cheaper than rent. Everyone can't afford to pay cash for their homes. My point is, debt is necessary sometimes. You can't just paint a broad stroke and categorize all debt as "bad" or as a result of "living above your means".

We have mortgage and student loans, and we live frugally for the most part to take nice vacations. They are paid for in cash, but I will be darned if I didn't take a vacation because of debt. YOLO, kwim? There are ways to vacation without breaking the bank. Spending frugally in most areas to spend lavishly in others..travel is that area for us. Moderation is key.

My wife and I also financed our own education, 100%. We took out loans and had them paid off, in full 5 years after being out of school. We lived in an apartment (crappy one, as we look back on it now) but it allowed us to get out from under the debt of those loans. Luckily, my graduate work was paid for as I was an RA, but we paid for my wife's graduate work out of pocket. We also worked almost full time in college and only borrowed for tuition. Again, choices we made to stay out from under the cloak of debt. Our first real vacation came after we paid off our student loans, we enjoyed it a great deal.

Yes, you only live once, but you can also live once and still make good financial decisions. Why do you think we had the housing bubble and why do you think stories come out that more than 80% of Americans could not get by a $1000 financial emergency? People are living well beyond their means, or they expect to live a certain way and can't afford it. My wife and I both came from nothing, and it is great to open up financial statements and see that the decisions we have made from our early 20's to early 40's have put us in a very good financial situation. Hard work, well thought out financial decisions, and a budget have done wonders for us. You can disagree all you want, but I know for a fact that what I propose works, 100% of the time.

 

[Marionnette]

My wife and I also financed our own education, 100%. We took out loans and had them paid off, in full 5 years after being out of school. We lived in an apartment (crappy one, as we look back on it now) but it allowed us to get out from under the debt of those loans. Luckily, my graduate work was paid for as I was an RA, but we paid for my wife's graduate work out of pocket. We also worked almost full time in college and only borrowed for tuition. Again, choices we made to stay out from under the cloak of debt. Our first real vacation came after we paid off our student loans, we enjoyed it a great deal.

Yes, you only live once, but you can also live once and still make good financial decisions. Why do you think we had the housing bubble and why do you think stories come out that more than 80% of Americans could not get by a $1000 financial emergency? People are living well beyond their means, or they expect to live a certain way and can't afford it. My wife and I both came from nothing, and it is great to open up financial statements and see that the decisions we have made from our early 20's to early 40's have put us in a very good financial situation. Hard work, well thought out financial decisions, and a budget have done wonders for us. You can disagree all you want, but I know for a fact that what I propose works, 100% of the time.

 

[Ngwira]

My wife and I also financed our own education, 100%. We took out loans and had them paid off, in full 5 years after being out of school. We lived in an apartment (crappy one, as we look back on it now) but it allowed us to get out from under the debt of those loans. Luckily, my graduate work was paid for as I was an RA, but we paid for my wife's graduate work out of pocket. We also worked almost full time in college and only borrowed for tuition. Again, choices we made to stay out from under the cloak of debt. Our first real vacation came after we paid off our student loans, we enjoyed it a great deal.

Yes, you only live once, but you can also live once and still make good financial decisions. Why do you think we had the housing bubble and why do you think stories come out that more than 80% of Americans could not get by a $1000 financial emergency? People are living well beyond their means, or they expect to live a certain way and can't afford it. My wife and I both came from nothing, and it is great to open up financial statements and see that the decisions we have made from our early 20's to early 40's have put us in a very good financial situation. Hard work, well thought out financial decisions, and a budget have done wonders for us. You can disagree all you want, but I know for a fact that what I propose works, 100% of the time.

Wow, your comments make lots of generalizations and assumptions. Why do you think that one cannot make good financial decisions AND still have debt? Are the two mutually exclusive? No, they are not. Having debt does not mean you are not making "good financial decisions". Certainly the type of debt one has needs to be examined before making such characterizations about someone's choices.
As I said in my first post, most people do not wish to be in thousands of dollars of debt due to massive student loans. Do you think people want to take out a mortgage to finance education? Some have NO CHOICE, if they want to go to school to get somewhere in life and obtain a good job.
Some are saddled with medical debt, that was NOT of their choosing. Maybe a cancer diagnosis or a lapse in health coverage due to a job loss caused them to be uninsured/under insured and incur large medical bills. THOSE scenarios are NOT voluntary choices that cause some to get into debt. So are you saying a mother of a pediatric cancer patient shouldn't go to Disney World because she has debt? She should wait until all her medical bills are paid off to spend quality time with her child who may not live another few years? That's crazy!
I'm happy that you and your wife are in a good financial position but you should count your lucky stars. Not everyone is so fortunate. LIFE happens and when it does, you cannot control what happens to you. You should really be more compassionate at those less fortunate and not judge. Different strokes for different strokes. Life isn't always about choices, I like to assume that most people are doing the best that they can with what they have.

 

[piccolopat]

We take vacations and will continue to do so with our mortgage remaining. We did so even when we had car payments and student loans. When we were young, we went when we had high credit card balances as long as we could comfortably pay more than the minimum. Now I would recommend not spending on big vacations when you have credit card or other revolving / LOC debt. Even if you are saving separately for vacation, that is money that could go to pay off your credit cards which often carry high interest rates. We never thought of it that way and paid way too much in interest. What a shock when you really add that interest up over time. Instead, take inexpensive trips until you have no credit card debt and an emergency fund. Then start to save or increase your savings for retirement. Once that is done, then plan those bigger trips. Whether you spend a little or a lot for a vacation, the important thing is to take a break from work and life to recharge your batteries. If you can't afford anything for vacation, find free things to do in your hometown and make up your own free vacation. Go to the park or a local garden. See a free concert in your town square.

 

[Nebraska_Disney]

We take vacations and will continue to do so with our mortgage remaining. We did so even when we had car payments and student loans. When we were young, we went when we had high credit card balances as long as we could comfortably pay more than the minimum. Now I would recommend not spending on big vacations when you have credit card or other revolving / LOC debt. Even if you are saving separately for vacation, that is money that could go to pay off your credit cards which often carry high interest rates. We never thought of it that way and paid way too much in interest. What a shock when you really add that interest up over time. Instead, take inexpensive trips until you have no credit card debt and an emergency fund. Then start to save or increase your savings for retirement. Once that is done, then plan those bigger trips. Whether you spend a little or a lot for a vacation, the important thing is to take a break from work and life to recharge your batteries. If you can't afford anything for vacation, find free things to do in your hometown and make up your own free vacation. Go to the park or a local garden. See a free concert in your town square.

Well said, and I agree with your thoughts/comments.

 

[MichiganScott]

How dare you be considerate and agreeable on the internet!

 

[RyansMum]

I watched as my neighbor refused to vacation until all debt was paid off. He and his wife worked their butts off year round to pay off the mortgage and cars early and looked forward to the day they would be free. He retired at 55 and we all admired his dedication and hard work. Until he died of a massive heart attack 4 days into retirement.

I vacation NOW. It's all paid for in cash before I go but I do have a fair amount of debt.

 

[Marionnette]

We're leaving Tuesday for a delayed 30th anniversary cruise of Italy and Greece. It was postponed shortly before this thread was started 1.5 years ago because my husband had to have open-heart surgery. Even with great insurance, our OOP cost was just north of $4K. I set up a payment plan with the hospital and I've been slowly paying it down. However, the money we had set aside for that 2015 cruise was for vacation and not for medical bills. And if the hospital had been willing to give me a discount for paying in full at the time the bill was rendered, I would have paid it all off from other savings. But since it doesn't cost me anything to draw out the payment process over time, we're carrying just under $1K in medical debt as I write this.

So, I'm going on vacation - with outstanding debt - and I don't care! Some people seem to think that this is a one-size-fits-all society and the reality is that what works for someone does not work for another person. And what works for you at one point in your life may not be the best choice at another time.

 

[DLgal]

Debt is less important than security of income. If you have a secure income (i.e. money that comes in regularly, like a pension, or guaranteed employment regardless of "circumstances"), then having debt is not a big deal at all. Take vacations. Why not? That's how we roll. We have debt. We take vacations. Mostly our debt is due to our vacations. LOL! We make use of our excellent credit rating (gotten from so much use of our credit cards) to snag amazing 0% balance transfers with 1% fees. I haven't paid an APR over 0% in over 15 years...and at most, I've paid 3% balance transfer fees.

No mortgage. Paid off cars. No student loan debt. Total debt is less than 5% of our "assets". We don't sweat it at all.

 

[RyansMum]

We're leaving Tuesday for a delayed 30th anniversary cruise of Italy and Greece. It was postponed shortly before this thread was started 1.5 years ago because my husband had to have open-heart surgery. Even with great insurance, our OOP cost was just north of $4K. I set up a payment plan with the hospital and I've been slowly paying it down. However, the money we had set aside for that 2015 cruise was for vacation and not for medical bills. And if the hospital had been willing to give me a discount for paying in full at the time the bill was rendered, I would have paid it all off from other savings. But since it doesn't cost me anything to draw out the payment process over time, we're carrying just under $1K in medical debt as I write this.

So, I'm going on vacation - with outstanding debt - and I don't care! Some people seem to think that this is a one-size-fits-all society and the reality is that what works for someone does not work for another person. And what works for you at one point in your life may not be the best choice at another time.

Oh I'm so happy for you two!