Do you vacation when you have bills?

[mrsklamc]

Not sure about any of the others posters, but I don't plan to retire with debt. I just don't plan to stop living until then.

Besides, what does having debt have to do with living on social security??

There are people who have made comments like 'I'll always have debt' and 'no matter how I budget I'll never get ahead.'

If they can't save money no matter what, what do they plan to live on if they become unable to work, was my question.

 

[bevgray]

What about quality of life? There really has to be a balance between work and play. Besides, "retirement" is a recent concept (post-Depression/WWII). Prior to the 1930s, most people worked until they dropped. If someone is counting on retirement, then by all means prepare for it. The argument between the grasshopper and ant approach is as old as Aesop. Most of us are not mature or disciplined enough to be ants though and must find a happy medium between the ant and grasshopper. Crickets still have fun but we stay within our budgets and, aside from some thought to the future (such as a work supported 401K plan) don't spend a lot of worry on a retirement that may never come to be.

To me, if the OP is even questioning the resources for a Disney vacation then she probably is wise to wait. As an alternative, what she might consider doing is pushing her trip out a year or two and start the actual planning. There are a lot of great ideas on this board alone for saving up for a trip. By making a planning strategy, that will make the trip more "real" and the entire family can really focus on planning and saving. This way, she can also set milestones. For example, save first for the hotel stay. When that sum is reached, book the hotel. It's a slow way to achieve the dream but it also keeps the dream from breaking down into the "we'll never get to do this" stage.

 

[ccgirl]

There are people who have made comments like 'I'll always have debt' and 'no matter how I budget I'll never get ahead.'

If they can't save money no matter what, what do they plan to live on if they become unable to work, was my question.

I don't think they are saying they can't save $$. I think they are saying they have debt. Do you have a mortgate? A car payment? Then you have debt too. People could easily say don't go on vacation until the car is paid off. How is a car payment different than credit card debt? You are paying interest on both.

What about quality of life? There really has to be a balance between work and play. Besides, "retirement" is a recent concept (post-Depression/WWII). Prior to the 1930s, most people worked until they dropped. If someone is counting on retirement, then by all means prepare for it. The argument between the grasshopper and ant approach is as old as Aesop. Most of us are not mature or disciplined enough to be ants though and must find a happy medium between the ant and grasshopper. Crickets still have fun but we stay within our budgets and, aside from some thought to the future (such as a work supported 401K plan) don't spend a lot of worry on a retirement that may never come to be.

To me, if the OP is even questioning the resources for a Disney vacation then she probably is wise to wait. As an alternative, what she might consider doing is pushing her trip out a year or two and start the actual planning. There are a lot of great ideas on this board alone for saving up for a trip. By making a planning strategy, that will make the trip more "real" and the entire family can really focus on planning and saving. This way, she can also set milestones. For example, save first for the hotel stay. When that sum is reached, book the hotel. It's a slow way to achieve the dream but it also keeps the dream from breaking down into the "we'll never get to do this" stage.

This is a great post and is my mantra. Do I have debt? Sure. Do I have an emergency fund? Sure. Do I have a 401K? Sure. Do we have more debt than we can afford on just one income (even though we have two)? NO. Do we still vacation with the debt? Absolutely. But....we pay with the vacation with cash and stick to a budget. Depending on the $$$ amount we have. We could use the cash to pay down our debt further. Instead, we choose to use the money for vacation.

It comes down to what both DH and DW can agree on (if married). As long as you are not going to lose your house, have a car repossessed etc...I don't see why you shouldn't take a vacation.

I see the OP has decided not to go to WDW. Sounds like they made the decision together so that is great. What is right for one family is not right for another. We all need to make the choices that we feel are best for us.

 

[crisi]

I think there does have to be balance. You shouldn't spend every minute of your workday working. But that balance has to be relative to your means. i.e. its possible that in order to live within your means your vacations aren't Disney, but a weekend at a local waterpark, or a drive to Chicago, or a tent in a state park. I'd love to go to Europe again next year - I'm really really considering it....but is regular European travel "within our means" - we were just there last summer? Your means might include a $100,000 wedding - or it might be a cake and punch reception at a park. My means might be a BMW, or I might need to drive a used Civic.

But I do think its important not to place too much value on vacation for your memories. Time, yes. People, yes. I remember the dark green carpet in my grandparents living room, with the Christmas tree, and the smell of ham and playing hide and seek with my cousins. That memory is as strong - stronger - than the view from the Eiffel Tower.

 

[SarahKate]

I will be going to WDW the next time with debt, and that is just how it's gonna be! We aren't going into additional debt by going, it will all be paid for in cash. Sure, taking the money and applying to my debt would be a great thing too. But I'm with other people on the board - you have to have a balance. We don't go on other big trips throughout the year, so this is our main splurge.

Some of my fondest memories growing up were the trips we took. Not to Disney, but just getting to go places. Yes, some of those memories were from just being at home. But the majority of things I remember as a child are the settings we were in and what we were doing, how we got there, etc.

I have a cousin who went to FL with us wayyyy back in 1990. I was 16, she was 11 or 12. That was my first time to Disney, just a one-day thing. You know, that was her ONLY vacation ever. She didn't have a great childhood, and my dad wanted to take her with us so she could experience it. Luckily, she turned out well! But she said she remembers that vacation so fondly and now it's a really important thing to her to be able to provide some opportunities for her own children now that they're getting older. I just think it's a priceless thing.

 

[marie1203]

I don't think they are saying they can't save $$. I think they are saying they have debt. Do you have a mortgate? A car payment? Then you have debt too. People could easily say don't go on vacation until the car is paid off. How is a car payment different than credit card debt? You are paying interest on both.

I think there is a big difference between a car payment or a mortgage and credit card debt. If you sell you house or the car the you can pay off your debt with credit card debt there is nothing backing it up. Other very big difference is a mortgage interest rate could be very low ours is at 3%. Same thing as car interest rates are usually a lot lower than credit cards that are usually over 8%.

 

[mrsklamc]

In general, I think people were saying they have debt. There were a couple of specific people that I thought were implying that debt was something you just ALWAYS have and I think there's a big difference.

So even though OP has already answered for her family, I guess my factors would be

1) how my spouse felt about it
2) if we were making progress on the debt, or drowning in it / living on credit

 

[jessrose18]

I vacation with bills. Keep it within budget and enjoy the memories, you only live once. That being said I also knew I always had money to pay the bills, maybe not in full but little by little I think its ok. If you waited until everything was squared away it might never happen, something always comes up. Everytime we get out cc bills payed off, I swear something happens where we just cant get ahead, but thats life.

 

[ccgirl]

I think there is a big difference between a car payment or a mortgage and credit card debt. If you sell you house or the car the you can pay off your debt with credit card debt there is nothing backing it up. Other very big difference is a mortgage interest rate could be very low ours is at 3%. Same thing as car interest rates are usually a lot lower than credit cards that are usually over 8%.

If you sell a car, depending on how much longer you have the loan and depreciation, you may not get enough money to pay off the loan. Actually, my credit card rates (0%/1.9%)are lower than my car loan (and mortgage). When it comes down to it, a loan is a loan and you are still paying interest. All comes down to what each individual person is comfortable with.

 

[Colleen27]

Other than a mortgage and a car payment I wouldn't go on vacation if I owed money.
How do you rationalize adding to the debt for fun? to me that is just irresponsible.

Yeah, but different people will draw that line in different places. We know quite a few people who have more student loan debt than they ever will have mortgage debt, and I wouldn't judge them irresponsible for not putting life on hold to pay off such a large, long term debt when they can handle the payments and still afford extras like travel.

 

[Planogirl]

Personally, I will go on vacation if I have debt but only if it's controlled debt and I don't add to it. I have been taking low cost vacations for this reason for a while and we will soon be out of debt in spite of that. We could have paid off the debt a month or two early but I believe that enjoying life is important too. Within reason of course.

 

[ReneeA]

Personally, I will go on vacation if I have debt but only if it's controlled debt and I don't add to it. I have been taking low cost vacations for this reason for a while and we will soon be out of debt in spite of that. We could have paid off the debt a month or two early but I believe that enjoying life is important too. Within reason of course.

This is us, too. We had a very, very large debt due to me being in nursing school full time and only working part time. DH was laid off for almost a year, and finally went back to his job...but is only getting part time hours.

We have spent almost a year paying down the debt and we are about halfway through now. We took a "budget" 10 day vacation to WDW in Aug/Sept. We didn't add to the debt - paid cash for it. We plan to continue to pay off the debt and still take a vacation next summer...by that point, it should be totally paid off or close to it. If it's not, we are going anyway. I'm fine with adding a month or 2 to my payoff schedule for a vacation.

 

[talulabelle]

Update post #15

We want to go back to Disney in 2011, we have credit card bills and medical bills. We've vacationed before when we have bills but this time I'm having a hard time justifying the trip because I feel bad for DH being the only one working and how hard it must be to see bills come in and not being paid off. He does a good job at paying them down and I help out by watching the shopping. We always use our income tax refund to pay for Disney but that money could be used to pay down the bills. The reason we might take the trip is the kids will be little only once, we're all healthy right now so why not take the trip and enjoy it while you can?

I haven't read this whole thread, but I'm sure it has been colorful....

To answer the OP - No, I have never and will never vacation, or spend on anything frivolous when i have debt (outside of my morgage).

Even when I don't have any debt, i still vacation on an extreme budget. I have only carried credit card debt for a few short months in my life, and that was during a down swing in my husband business and right after Christmas. I got out of debt that year by not taking any vacations. I HATE being in debt and try never to be. At that time my kids were little (they too were only little once) but then again they were little, so they didn't even notice that we didn't take a vacation. Oh, yeah, I wanted to go to Disney that year, and have wanted to go every year (FYI, EVERYONE in the nation, including homeless people "WANT" do go to Disney - we just all can't afford it) ....but I never buy anything unless I have the cash to pay for it. ( I use credit cards for the convenience and records they send me, but I know how much money I have in the bank and don't buy something with my card unless I know I have the money in the bank to pay for it that month. ) and This was a very good lesson for my kids at that age. If they asked for something I said, "I don't have the money for that right now, we will have to save for it". My kids know that they can't buy a pack of gum if they haven't saved the money in their bank...they would never think of going into a store and saying "but I want the gum now, can I have it and pay you next week when I get my allowance" They know they have to have cash in hand, and I know this too. No money, no stuff. It is pretty easy. We all "want" stuff. but it won't kill you or your kids to go with out it. In fact it will make you stronger as you realize that you have the strength and willpwoer to resist your "whims". It will give you better finacial status and releive much more pressure on your family than a vacation would. You will just be putting more pressure on yourself and be more in debt wit a vacation, and next year, guess what, you will still "want" a vacation and your kids will still be "little once" and you will be in more debt and begin a bad spiral.

 

[cm8]

You can vacation on a budget or outrageously. I've gone to Orlando on a shoestring and I've gone on a whirlwind. I think if you go on a budget, knowing your limitations and can continue paying your bills on time, you can do it.

agreed!

 

[luvsJack]

I think part of the difference of opinions comes from reading the question differently.

It was my understanding that she asked would you go if you debt, but that she did NOT mean she would be adding to the debt with the vacation.

Going and paying cash even though you have some debt is much different than going on the trip on credit while you already have debt.

The other part is simply that different people find different things to be most important in their lives. That difference is what is going to make this question get as many different answers as there are people answering.

 

[crisi]

And that depends on how you figure "adding to debt" I don't know about your budget, but have ONE balance sheet and ONE net worth, I can use income to pay bills or do something else. There isn't a magic "credit card salary." If I do something else with it - I am adding to my debt - particularly if that 'something' doesn't result in a 'real' asset (like a car or a house). So even if I pay cash for a vacation, if I could be paying down debt with that, I think I'm using debt.

 

[talulabelle]

I think part of the difference of opinions comes from reading the question differently.

It was my understanding that she asked would you go if you debt, but that she did NOT mean she would be adding to the debt with the vacation.

Going and paying cash even though you have some debt is much different than going on the trip on credit while you already have debt.

The other part is simply that different people find different things to be most important in their lives. That difference is what is going to make this question get as many different answers as there are people answering.

In my opinion - when you owe money, whether it be to a corporation, a bank or an individual - it is your duty to pay them that money when you have it.Not to get some money, and say, "well, I want to continue to have a little fun, so I will use the money for me and pay you later when I feel like it".

My friend has a house she rents out and the tenent was way over due with rent and was always singing the blues about how she didn't have money. My friend was very understanding and patient with her and would let her have extra time. So she called the house one day when the rent went unpaid for yet another month and the teenage son of the tenent answered. He said they didn't have the money, but his mom would have to get pack to her when she got back from a trip to England to visit a friend. My friend said "I think I know where my rent money went this month" See, to the tenent, they were "maintaining a standard of living" while not "adding to their debt" as they paid cash for the vacation....but that was money that was owed to my friend. She could have been investing the money due her and making a profit, but was not allowed to as the tenant cared more about herself. What if my friend was as irresponsible with money and was counting on it to pay a mortgage? The tenant was wrong and selfish to act like the money was her own.

To me it is just immoral to continue to use money like it is yours when you really owe it to another, and it doesn't matter if it is a bank or a person. It is just wrong.

Of course, this is why I live debt free, and many others don't.

 

[angierae]

For me, it depends on what the debt is. Credit card debt? No way, that needs to be paid. (We don't carry balances on our credit cards, and if we needed to charge something in an emergency and couldn't transfer money from savings to pay it, we would definitely be funneling most if not all of our "fun" money towards paying it off until it was gone.)

Now, debts I have arrangements to pay already? Car loans, mortgage, even medical bills that I've made payment arrangements on? Those are being dealt with in a way that is agreeable to both me and the entity I owe money to, so I wouldn't count those as "pay it off before you go on vacation" debts.

But if I was five or ten grand in credit card debt like some Americans are? There's no way I'd be spending $3k on a Disney vacation.

 

[tlbwriter]

In my opinion - when you owe money, whether it be to a corporation, a bank or an individual - it is your duty to pay them that money when you have it.Not to get some money, and say, "well, I want to continue to have a little fun, so I will use the money for me and pay you later when I feel like it".

To me, all you owe the creditor is to make your agreed payments on time. If I owe a creditor $1000, and I've agreed to pay them $250 a month, and I'm making those payments on time, it is not wrong for me to take $500 cash and spend it on a vacation, since I am still fulfilling my agreement with that creditor. The tenant you talked about was not doing this - she was making her payments late. And that's definitely wrong.

 

[talulabelle]

To me, all you owe the creditor is to make your agreed payments on time. If I owe a creditor $1000, and I've agreed to pay them $250 a month, and I'm making those payments on time, it is not wrong for me to take $500 cash and spend it on a vacation, since I am still fulfilling my agreement with that creditor. The tenant you talked about was not doing this - she was making her payments late. And that's definitely wrong.

While I understand your position - and it is true that you are not breaking any law as long as you are making agreed payments on time - I can not even fathom not paying down the debt asap. I can not imagine having to indulge myself so badly that I would be ok with continuing to pay a high interest rate on the money. I would want that compounding interest gone and gone yesterday. Again , for me, it would just be immoral to let the interest continue rather than pay down the debt.