Do people really pay those Disney rates?

[Brian Noble]

For those of who hold credit, its important to have as little as possible show up on your credit report.

I guess I just do not feel the need to do this. My current situation is such that adding an extra loan here and there has no material impact on my credit score or the rates I obtain. And, I'm not one of these no-debt-ever sorts of people. I have a conventional 30-year mortgage. My wife still has a few loans left over from medical school. We don't buy cars very often but we'll even finance some portion of that purchase for the right rate. It's not as though I never borrow money; I do. But only in very limited circumstances.

From my perspective, paying less for the same thing is always better than paying more for it. If I'm not willing to put my house up on the loan to reduce the rate, that could only mean that I thought there was a real possibility that I could not repay it. And, in that case, I would not feel comfortable buying DVC, even with cash. That might mean putting off a DVC purchase. It might even mean cutting back on vacations a bit to help increase my cushion. That's not the end of the world, and might be prudent in some situations.

I don't quite understand what home value trends have to do with any of this, as long as you don't plan to sell anytime soon. If you do envision moving, then you have to make sure you keep a decent equity cushion. But, if you're set in your current home for quite some time, then either you have sufficient equity to borrow against, or you do not. If I did not, that might be yet another sign that, perhaps, I should not be undertaking the obligation of DVC at this time.

Again, there's that whole 31 flavors thing, so your mileage may vary, and different people have different levels of tolerance for debt and risk.

 

[logan115]

Not sure exactly how we will finance. I do know that we will not use our Home Equity Line, we save this line of credit for actual "house stuff." If it isn't house related we won't put anything on there.

Isn't DVC a "home away from home" and therefore fit your criteria of being "house stuff" ?

May also want to consider buying a small resale contract now that let's you buy as little as 25 points, then add more as you're comfortable doing so. This way you won't be "throwing away" as much money on OOP ressies for the next few years.

 

[Dannielle_1]

Isn't DVC a "home away from home" and therefore fit your criteria of being "house stuff" ?

I wish it did in my mind...

 

[nwhitehead1214]

The point is not that a family whose income is $40,000 per year does not deserve a nice family vacation, rather that maybe we are looking down on those that are staying at the Pop Resorts. DVC is in my estimation a high-end vacation. We as consumers are responsible for this economic mess. Over the last 10 years, our society made a huge shift toward material posessions as a way of defining ourselves. We saw middle class people moving into bigger and newer homes. We saw those same people choosing a Mercedes or Cadillac over a Honda or Chevy. Nobody is suggesting that people should stay in their homes and not go on vacation. When my family went to WDW we stayed off property at cheap hotels when I was growing up. To suggest that somehow the memories of a DVC vacation are somehow better than those who stay off property or in a budget resort is just the same kind of thinking that put our country in the place we are today. I disagree that it is not anyone's business how you spend your money. When some of these people who have no money for retirement can't work anymore, they will live off the government. Last time I checked, that requires more tax dollars which come from those who have earned and invested wisely. Now on to fun topics

Well said Or Disney could apply for a bailout-- why not.

 

[nyck]

The point is not that a family whose income is $40,000 per year does not deserve a nice family vacation, rather that maybe we are looking down on those that are staying at the Pop Resorts. DVC is in my estimation a high-end vacation. We as consumers are responsible for this economic mess. Over the last 10 years, our society made a huge shift toward material posessions as a way of defining ourselves. We saw middle class people moving into bigger and newer homes. We saw those same people choosing a Mercedes or Cadillac over a Honda or Chevy. Nobody is suggesting that people should stay in their homes and not go on vacation. When my family went to WDW we stayed off property at cheap hotels when I was growing up. To suggest that somehow the memories of a DVC vacation are somehow better than those who stay off property or in a budget resort is just the same kind of thinking that put our country in the place we are today. I disagree that it is not anyone's business how you spend your money. When some of these people who have no money for retirement can't work anymore, they will live off the government. Last time I checked, that requires more tax dollars which come from those who have earned and invested wisely. Now on to fun topics

And the day that you gain a political office and decide to make this a utilitarian society, then you can judge others and tell them how to spend their money. Debt and riches go hand in hand. Recession will always make a come back due to human nature. Historically this happens every 40-50 years and it will happen again, so telling people what to do with their cash never stops the cycle. A new generation that has not experienced it will do the same thing. The "kind of thinking" that puts our country where we are today has nothing to do with DVC, but everything to do with the fact we never look in the past and learn from generations before us. This is not new, it repeats itself. And even those that invested wisely are going back to work because the money they have will not last due to their life expectancy and instablity of the market, which back in the 50's people were not living as long as they are today. I mean, what is next, we are telling people you can't have kids unless you have a FICO score of 700, a couple of $1000 in the bank, a Bachelor degree? Sorry, when you earn MY money you can tell me how to SPEND my money.

 

[nwhitehead1214]

And the day that you gain a political office and decide to make this a utilitarian society, then you can judge others and tell them how to spend their money. Debt and riches go hand in hand. Recession will always make a come back due to human nature. Historically this happens every 40-50 years and it will happen again, so telling people what to do with their cash never stops the cycle. A new generation that has not experienced it will do the same thing. The "kind of thinking" that puts our country where we are today has nothing to do with DVC, but everything to do with the fact we never look in the past and learn from generations before us. This is not new, it repeats itself. And even those that invested wisely are going back to work because the money they have will not last due to their life expectancy and instablity of the market, which back in the 50's people were not living as long as they are today. I mean, what is next, we are telling people you can't have kids unless you have a FICO score of 700, a couple of $1000 in the bank, a Bachelor degree? Sorry, when you earn MY money you can tell me how to SPEND my money.

Funny how two people could read the same entry and get different takes on the entry. The "kind of thinking" I thought s/he was addressing is this "rich/poor class warfare type argument". The poster was responding to someone who was offended that they too could not vacation at WDW (at 40K) and they were doomed to stay home by the rich who judged (at 200K). However, this is a direct assault on those who do stay at value resorts (as this poster does sometimes) as if their vacations are not worthy and you are somehow being punished for staying at the Value. The only vacation that counts is a DVC one. I like the Pop and consider myself blessed when I am able to vacation anywhere on the WDW property. We can act so spoiled sometimes. Quite frankly I am quite happy to watch the market play out as it has for generations before us. I do get a bit squimish however when taxpayer dollars start bailing out people and not the consequences of behavior. Nobody is telling people how to spend their money, but please once you have made your decision (not you personally this is just a hypo) don't cry to the government for help if it was a bad one and ask for money from someone who was content (and quite happy) to stay at the Pop because DVC did not make sense to them in their financial situation. The original post asked posters thought on financing, people do need to stop taking things so personal. This is not a "class warfare" assault. There are great examples of when financing works.

 

[CarolAnnC]

Since this discussion has veered off track more than once and now has political overtones, it is now closed.