Vacations with Debt

Discussion in 'Budget Board' started by mb_uh, Jun 26, 2011.

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  1. mb_uh

    mb_uh DIS Veteran

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    This seems to come up a lot. And I see all ends of the spectrums from the Dave Ramsey NO DEBT folks to the Disney even if they do not have a job :confused3

    So my question is do you think it is ok or would you to Disney or any other vacation if you had any credit card debt.

    Assuming:

    Great retirement plans for both spouses
    Some savings
    Debt less then $5000 managable payments
    Good rates on all debt and well within families means in secure positions with marketable skills and education.

    Vacation would be paid in full from cash and would be less then amount to be fully debt free. Vacation is discounted and while it has lots of perks bugeting will limit finaicial impact.

    So would you see this as okay or do you think it is foolish?
     
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  3. RabbitFood

    RabbitFood Mouseketeer

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    We don't carry credit card debt. The card gets paid off every month--period. If taking a vacation meant we carried a credit card balance--we'd stay home.
     
  4. ozziejen2000

    ozziejen2000 Earning My Ears

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    What type of debt is the $ 5000.00? If it is credit card, I would say do not go. What is small savings? Do you have an emergency fund? If so, then I would go.
     
  5. papamouse1

    papamouse1 Still... Papa "MooMoo"

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    If the $5000 represents debt you can eliminate in 1 year max, and making monthly payments is not stressing your budget, we would "consider" going. I am total agreement, we prefer to be out of debt but here's the thing, my experience with my kids at WDW will not be the same 2-3 years from now. I don't like debt, but I refuse to miss those special moments with my kids while they are kids. ;)
     
  6. si-am

    si-am DIS Veteran

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    I have credit card debt and I go on vacations. It would be one thing if I couldn't pay my credit card bills, but I can, and I do. No biggie.
     
  7. Where'sPiglet?

    Where'sPiglet? DIS Veteran

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    I think it would be preferable to pay off the debt first and then go. If you are capable of saving up the cash for the vacation, then you are capable of throwing more than the minimums at the debt each month and knock it out. Then you could save up the cash for the vacation and go without the debt hanging over your head.

    However, if there is some sort of legitimate urgency to taking this trip now, then I'd do what you plan and pay cash for the trip. When I got home, I would really try to knock that debt out and build up your savings some more.

    Personal finance is just that....personal. You need to figure out what you are comfortable with doing and then follow through with it and accept the consequences (good or bad) of your choice.

    I think in your situation I'd be very tempted to take the vacation considering the assumptions you listed!
     
  8. disykat

    disykat DIS Veteran

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    Personally, I would not a vacation if I was regularly using credit cards to finance my expenses. However, that doesn't sound like this is the case.

    If you have a small amount of debt, with a plan in place to pay it off that is WORKING, and are not taking on debt on a regular basis, I think a carefully budgeted trip is reasonable.
     
  9. furb & dez

    furb & dez City Bear Jamboreers

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    Any credit card balances get paid off prior to each vacation. Usually, the only thing on the card is vacation prep (flights, hotel, tickets, etc.).

    Having credit debt for any other reason means you're living outside your means, in my eyes.
     
  10. disykat

    disykat DIS Veteran

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    Yikes! :scared1: You may have your credit situation under control, but there are a lot of people who don't understand that just paying the minimum amount they must pay on a credit card bill, while it may keep creditors at bay, isn't keeping things under control!

    "No biggie" could be true for someone who is very careful with the way they use credit and keeps an eye on the bottom line, but the same thing could also be a BIG BIGGIE to someone who is not savvy and thinks they are doing fine because they pay the minimum while continuing to dig themselves into larger amounts of debt.
     
  11. Disneyliscious

    Disneyliscious DIS Veteran

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    OP, I have learned a few things during my tenure on the DIS....

    The DIS population seems to have lots of rich folks with hundreds of thousands of dollars in various types of savings

    The DIS population seems to have a lot of wealthy people who never make bad financial choices or splurge

    The DIS population seems to be made up primarily of people who never take a vacation if they have any debt

    The DIS population seems to be primarily made up of perfect people who never make mistakes, break a rule, or do any wrong

    The DIS population seems to consist of many people who feel entitled to everything, including being entitled... to being entitled

    Its like everyone who is wealthy, perfect and debt free flocked to the DIS and made their own little community. Therefore....

    The DIS population does not represent me or my household.

    If you can afford a vacation then YOU know it. Not someone on a message board who may or may not be from the advice giving background they claim. If people waited until they had no debt to take a vacation, travel services and tourist locations would be non-existent because there would be no one to bring in revenue.

    Sharing your household finances here will only bring out the Desperate Housewife types who would scold you for going on vacation if you owed $10 on a bill that wasn't even due yet.

    Take your vacation and enjoy it while others sit here and bicker back and forth about why you shouldn't.
     
  12. tasha99

    tasha99 DIS Veteran

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    Yes, I would. I wouldn't do it often enough to get deeper into debt, but I wouldn't put my life off in order to save money. You can scrimp and eat beans and never do anything, but that still doesn't mean you're guaranteed a tomorrow.
     
  13. Gisele

    Gisele Luv honey.Not the sting of bees Luv HM gumispiders

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    Very well said, and I most heartily agree. :thumbsup2

    Also in agreement. :)
     
  14. Beezle2

    Beezle2 DIS Veteran

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    So true Disneyliscious, it's annoying financial one upmanship. And who cares if someone on a message board thinks I can't afford a vacation. I go when I think I can afford it.

     
  15. Marionnette

    Marionnette Children see magic because they look for it

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    IOW, if someone chooses to answer to OP's question with an opinion that is contrary to your own, they are being sanctimonious, judgemental, perfect people with huge amounts of wealth, no debt and never squander a penny on frivilous purchases?

    Just asking so that we're clear on this.

    Seems to me that for someone who views others as being judgemental, you're doing a lot of judging yourself.
     
  16. GinnyEmma

    GinnyEmma DIS Veteran

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    The op asked for opinions. So People should be slammed for giving them? That makes a lot of sense. People post on subjects they feel strongly about. If someone has deal wit cc debt (I did. I was really stupid after college) or were raised where debt is disdained, they are going to feel strongly enough to answer. No biggie. They are merely opinions of strangers. Who truly cares what a stranger thinks?

    Op, we don't carry debt but I think of one isn't just paying minimums on their cc debt that it isn't a big deal. If you were just eeking by, I'd suggest waiting.
    We've had to postpone due to financial emergencies, illness, and work problems. It sucks, but I just start planning the next vacation, and realize that just making time for the simple things like family and fun are the important part.
     
  17. NYEmomma

    NYEmomma DIS Veteran

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    I say go, for sure!

    I may be in the minority in this opinion, but I think there's such a thing as being in a healthy financial position even WITH credit card debt and being in an unhealthy financial position.

    If you're regularly making significant payments towards your credit card debt (i.e. not the minimum), can comfortably pay all the rest of your bills & can save enough to take a vacation w/o going into further debt to do so, I say go & ENJOY LIFE!! :hippie:

    We've got about $7500 in credit card debt and we're going to WDW in October. We're paying for it in cash with the money that I make doing my part-time WAH job... the condition of saving for vacation was that half of my paycheck would go to the vacation fund & the other half would go towards our credit card debt.

    It's taken us over a year to save for it & this is the first vacation we've taken in about 5 years. Yes, credit card debt is bad... but for me, life is just too short to spend anything less than 100% of my time doing my best to enjoy it within reason. We wanted to go while DD was still under 3 and would be free (she'll turn 3 the end of December) and we wanted to take DD on her first vacation before having another child (we're going to TTC in September).
     
  18. gracie1

    gracie1 DIS Veteran

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    I have credit card debt and I go on vacation :scared1:
    :laughing::laughing::laughing:
     
  19. GinnyEmma

    GinnyEmma DIS Veteran

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    Also, I figure that the op has an understanding if the opinions that will be expressed. She states in the op that these issues come up with feeling. Op you are of course welcome to tell me I am wrong! ;)
     
  20. tweedlemom

    tweedlemom DIS Veteran

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    Enjoy your vacation!:thumbsup2
     
  21. Marionnette

    Marionnette Children see magic because they look for it

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    And to answer the OP's question:

    I'm sorry, but the $5K CC debt would be a deal-breaker for me. Other debt (mortgages, car loans, student loans) don't get on my nerves as much as CC debt does. I think it's because I've seen a couple of my siblings allow CCs to ruin them financially (more than once for one brother!).

    I wouldn't be able to comfortably vacation knowing that I had that hanging over my head. If I had extra cash, it would go towards paying off those CCs before it would go towards a vacation, no matter how good the deal was. I know that there are a lot of people who don't feel the same way (see above posts). But that's the way I feel about the subject.
     
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