HELP pay in full due in 2 weeks. Need advice!

Discussion in 'Disney Cruise Line Forum' started by TheWescotts, Aug 1, 2013.

  1. lilpooh108

    lilpooh108 DIS Veteran

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    There are usually some pretty serious tax implications and penalties for doing so. I'm no CPA, but I'm almost certain that this is a really really bad idea.

    And there is no pickle if she takes away the pickle -- ie, cancel the vacation. Disappointment, yes. Dire financial straits? No. Problem solved.

    And guess what, I've been on an end of Oct cruise. Not packed at all. Schools are in session, still hurricane season, not on any kind of holiday weekend. My guess is she might even see a VGT rate after PIF.
     
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  3. neg58

    neg58 DIS Veteran

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    Borrowing from a 401k and paying yourself back is only done if you have an account through your employer. If OP is talking about commissions, I don't think he's an employee. He could cash out some retirement funds, but would be taxed and penalized. NOT a good idea.

    OP added some info in a later post that his Disney Chase card already has some medical charges that he needs to pay off. Emergencies happen and it's great to have a credit card to get you through the crisis, but don't add more debt until it is paid off.

    I usually don't comment on other people's spending or financing questions, but this thread is really bothering me. I don't care if people spend $500 for a cabana or $275 on a tea party IF they have it. "Have it" to me means all other obligations for the year have been paid (or accounted for)- college savings, retirement IRAs or 401k, mortgage, credit cards. You get to spend what is left over at Disney, not what's needed for everyday expenses. Lots of ways to fund a vacation including working more or having a garage sale, but charging it isn't a method I'd use.

    Nancy
     
  4. lilpooh108

    lilpooh108 DIS Veteran

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    Good to know, and well there you go. Bad financial idea.
     
  5. MND

    MND DIS Veteran

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    I don't know what kind of car OP drives, but how about trading it in for a less expensive one. For example, if your car is worth $15,000 swap it out for a $10,000 one. You pocket $5,000 and your insurance may drop as well.

    Mike
     
  6. Mystery Fan

    Mystery Fan Mouseketeer

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    I know this may sound harsh but since you asked....cancel the cruise and pay the card off. The crow you eat when you tell the two other families isn't going to taste very good but YOU CAN'T AFFORD TO GO, period.

    On the other hand, pull from your retirement accounts and see what the IRS does to you next year. Maybe you can send the IRS a note and explain that your peers pressured you into going and see how that flies.

    Personally, a few years back our family left for a Disney cruise at Thanksgiving and we didn't have the money, so we stayed home. Once had to cancel a booked cruise because of work related issue too.

    It happens. :welcome:
     
  7. MND

    MND DIS Veteran

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    I like the note to the IRS, that could work. Wait a minute, many retirement plans allow for a loan. I'm not a tax adviser, but you may not run afoul of the Man if you go that route.
     
  8. NokOnHarts

    NokOnHarts Mouseketeer

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    This thread reminds me of when I used to watch Suzy Orman "Can I afford it?" I think what bothers me the most about this is that (I assume) there is not any kind of emergency savings fund anywhere to be found? I figure if there was, OP would dip into that until they could pay it back from the commission. Granted, I don't feel a vacation is a valid reason to dip into an emergency fund, but if it's true that there isn't 2-3K in an emergency fund, I don't think the cruise is even something that should be being considered (IMHO). I don't believe anyone can afford any item / trip they want to purchase if they don't have MORE than that amount already in an emergency fund set aside. Having at least 6 months of living expenses saved up before buying ANYthing that wasn't a true necessity is the advice I would give. We live on one modest income in an expensive-to-live state so I know how hard it is but as harsh as it sounds, it all comes down to self-control. Spend below the check you bring home and be patient to save for the fun stuff! I know from experience it can be done and it's so much more rewarding. :)
     
  9. omalley1118

    omalley1118 DIS Veteran

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    I'm sorry you are in this situation. It's certainly a tough one. You have to do what's best for you. As many have said, I would have a brad time enjoying myself knowing we went into debt for it. It sounds as though things may pick up for you shortly. With that in mind, I would cancel and rebook when it was easier to do so financially.
     
  10. Seamama

    Seamama Mouseketeer

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    I'm not sure how old your kids are but if they're old enough to understand (and if you decide to cancel), I would explain the financial situation and tell them that it breaks your heart too but you don't believe in spending money you don't have on an luxury like a vacation. It's awful to have to cancel and disappoint everyone but I think it's an honorable decision and a really good money management lesson to model for your kids.
     
  11. ruadisneyfan2

    ruadisneyfan2 DIS Veteran

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    To me, this is the key words. I've never worked on commission but the idea of "hoping" money will be coming in would make me uneasy. Like the saying goes, don't count your eggs before they hatched.
    That said, I do love the 0% that the Disney visa offers but if you can't pay it off in 6 mos you'll still be stuck with interest. For $2500, that would be over $400/month. In the end, it's your choice.

    FWIW, the prices of all categories are locked in when you first booked. The price you see now online for a lower category may not be the price you'd pay if you changed categories. I would at the very least downgrade to the cheapest category. We've had cruises on a tight budget where we only spent $50 more than gratuities.
     
  12. martikus

    martikus Mouseketeer

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    It is probably not the answer you want, but you cannot afford a vacation. You should cancel.

    No one with credit card debt IMHO can afford a vacation. If you do not have a 6-8 month emergency savings account you cannot afford a vacation.

    Living within your means is no fun, especially when most of america does not so we all see our neighbors/friends leading these fun lives.

    Based on what I read on here and other boards I think my opinion is in the miniority but that is my 2 cents.
     
  13. Twofebboys

    Twofebboys I wish I was going....

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    You can not go. You can not afford it. You are living on the edge of a complete disaster waiting to happen.

    Do you know if you borrow from your 401k at your current job the tax implications? Usually your current tax rate plus 25%! (My numbers might be off a bit.) And if you leave that job or get fired you usually have to pay it back in a very short time (30 to 90 days).

    Then, there is your piece of mind. What if something really bad happened...loss of job, accident, etc?

    You know why I know? Because I have been there. I was robbing Peter to pay Paul for years! I just had to do things and have things because I wanted them. I never saved a dime. Then, we changed our ways. DH & I took a class and changed our ways. Our life changed completely. Not just finances, but our marriage, too. Now, we control our money it does not control us.
     
  14. TwinPrincessMermaids

    TwinPrincessMermaids DIS Veteran

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    I never tell anyone what they can or can't do. Going on my parent's anniversary trip wasn't in the budget but it's the one thing they have talked about all yr because they thought they would have to go by themselves and we surprised them. sometimes timing stinks. Sometimes family is more important and sometimes taking trips isn't reasonable. The only person that can decide what to do in this instance is the family, even if they have asked for suggestions. Its probably a bad idea to splurge on extra luxury and upgrades but in the end, whatever you decide is your choice.
     
  15. Twofebboys

    Twofebboys I wish I was going....

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    I disagree. Sometimes timing does stink. And sometimes others have a clearer picture. But, having a secure future for your family outweighs a family vacation, which is a luxury. Memories can be made anywhere without spending money you simply do not have. There is a huge difference about going on a vacation and having the money to pay for it and not having the money. Also, if you have children they are watching. Mine did! They know we are debt free except the house. They know we pay cash for things. They know the difference between a need and want. A few years of being tight equal a lifetime of security and I am changing our family tree!
     
  16. TwinPrincessMermaids

    TwinPrincessMermaids DIS Veteran

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    We both agree that 'sometimes timing stinks'...(That's why I said it.)

    That's a fine decision for you to make for your family. It doesn't necessarily mean its the only decision for the family making the decision to decide.

    They are asking for suggestions but ultimately it is their business, and not for us to arbitrarily say they have to this or have to not that.

    I wish the OP the best, and I'm glad that you are debt free.

    I'm also glad no one ever told me I had to miss my parent's anniversary. Nothing is 100% cut and dry, that's all.
     
  17. Justacruiser

    Justacruiser Military Veteran

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    I doubt that the October 27 cruise is going to fill up real soon. So, with that, I would cancel and then re-book when you have the cash in hand. I wouldn't tell the kids anything about the situation. If for some reason you positively can't go you let them know. If you want to tell them, the plan is to go on a cruise on October then fine. The don't need to be concerned about your finances. IMHO
     
  18. luv2sleep

    luv2sleep DIS Veteran

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    Cancel and rebook when you can pay it. It seems like you really don't have a choice. Even if you downgrade you still won't have the money. A guaranteed rate may come out anyway saving you money in the long run.
     
  19. TheWescotts

    TheWescotts Mouseketeer

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    Thank you for all the advice everyone. We are still trying to make it work. My wife is picking up extra hours. As a nurse this add up very quickly.

    I would like to say that the idea of borrowing from retirement was not mine, and not something I ever even considered. That is just one step above getting a payday advance from a "check into cash" type place. Not gonna do it.

    We sat down last night, and we think we will make it. Probably downgrading room type and upgrading later. It will be tight, but bills will be paid and there will be food on the table...one other expense we had slated for this month we were able to push back to a "pay what you can when you can"

    I am still thinking of canceling and hopefully re-book at a GTY rate...but that is risky and my wife is not totally on board yet. We are not going to make any final decision until the 10th.

    Thanks again.
     
  20. precious2200

    precious2200 "I give myself very good advice. . . but I very se

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    I totally agree with you. Coming home from a vacation without a credit card bill is an amazing feeling. Just because someone can afford the payments, doesn't mean they can afford it. Save up and pay for your vacation when you have the cash. Its liberating!
     
  21. TwinPrincessMermaids

    TwinPrincessMermaids DIS Veteran

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    Great planning and strategy. You will know the right thing to do by the PIF date.

    Also, that hard working nurse wife of yours definitely deserves a vacation. :cheer2:

    I hope other commissions come through too. Come on economy!
     

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