DVC and Oprah's Debt diet, I need advice.

[TaraBoss]

I want to thank you all so much for your advice. We are paying off old debt, that as you all know, doesn't just go away. We make a decent living and don't buy luxury items. I've already cancelled online blockbuster and other things that we don't need, but we don't overspend like a lot of the families on Oprah, so it's harder to find things to cut. I've also made a list of meals so that we don't keep so much extra food around "just because". Now I find out our dog has a liver problem-boy when it rains it pours. I'm still toying with selling, which breaks my heart, but it would knock out a whole credit card, but may just rent them out for now and see how our money saving plan goes. Thanks again all, I really appreciate your opinions.
Tara

 

[mfin]

I haven't followed what's going on with the Oprah debt diet but believe that David Bach was one of the folks she had on her program and have read several of his books. Me - I just bought into DVC after much thought even after doing Bach's Latte Factor. Why - family values, which he does speak about in his books. I much rather have vacation time with my daughter and will cut out expenses elsewhere; brown bag-it for lunch, dine out less frequently, coffee in the office, consolidate shopping/errands to keep fuel costs down, hit the library for books, work out at home not the gym. Two things I won't give up - DVC & my cable modem (which costs me big $$$ but the tradeoff allows me to work from home on days my girlie is sick or if I want to go in late so we can have a less rushed morning and not take a paycut) Life is too short - many years ago before my daughter - my LATE husband (died at 42) would have agreed, sacrifice on the small stuff listed above that won't make a difference but time with the family is priceless! He valued his vacation time with his daughters and couldn't care less about having the newest "whatever". I wouldn't recommend buying if you need to clear up debt but if you already own DVC - make it work - cut elsewhere.

 

[MrShiny]

Definitely try renting! Look at it this way, if you rent all your points out for 10 years, you'll get back your investment most likely, plus still have years of vacations left!

 

[MrShiny]

And remember - no one every said on their death bed, "I wish I would have worked more."

 

[aclov]

I also thought of selling my DVC to pay off debt but decided to rent instead. At first I thought it would be difficult but you have the power to rent to whomever you want to. I had even contacted the TTS, which responded the next day. Having my DVC has enabled me to take wonderful trips with mine and DH's family and our friends. It is something that has brought a little bit of happiness and I love looking forward to knowing that I will be back at WDW. If you decide to rent you will also be passing on the magic to someone else. Some people can't afford staying on-site at wonderful resorts by paying rack rates. I just made the decision unless I'm starving, I won't part with it!

 

[Disney1fan2002]

I will sell the cars, and even the house before I sell DVC.

I have a different attitude about about Disney, many people may think it is the wrong attitude, but, I really don't care. Disney is an obsession with me, and I LIKE it. So, with or without DVC, we would still be going to Disney, and DVC saves us money. So, when I have to look at our debt, and "buckle" down, DVC is not even considered, because I don't view it as a debt, I view it as a money saver. We bought in 2002, financed it for 10 years, but doubled the payments, and it will be paid of in October of this year. So it only took us 4 years to pay it off. Our dues are taken out monthly, so we don't have that big bill to pay at once.

My attidude on life has changed, since losing 2 brother's and a dad in a 15 month period. Be as happy as you can be, because you may not be here tomorrow. Disney makes me very happy.

I don't worry about my debt with that attitude, because you don't take it with you. I am getting better at controlling our debt, and paying it down, but I have enough life insurance to pay everything off, including the house, and my Dh will still have enough left over to raise the kids, send them to college and give them big weddings!

 

[ttepsich]

I agree with you Disney1fan2002. Life is short and Disney memories last forever. Our family has been going to Disney since 1988. We always wanted to become DVCers but felt we couldn't "afford it". college to save for mortgages to pay ) We also thought the kids would lose intrest as they got older. Well............. I have 2DD and 1DS (22,15, and 20 respectively) The 22year old DD chose Disney as her college graduation present. (She had the option of anywhere she wanted) Now I'm actively looking for a contract of my own because frankly, the magic never ends. This year we are trying the BCV for the first time by renting points through an owner. I now have stepped up the intensity of the search process after attending the funeral of a 38 year old friend of mine. Her fondest memories are of vacations with her children, especially at Disney. Disney and the magic was mentioned several times during her funeral service. They just recently returned from a Disney cruise and pictures of their vacation were everywhere. Life is too short to worry about a few bills or debts. I want to be able to pass on the magic to my children and grandchildren. At 50, I'm ready to take the plunge because it's never too late.

 

[WDWorld2003]

We should sell our DVC to pay our debts as we've had a loss of income the last few years (right after we purchased).... but we've decided not to after much discussion. Our contract came with banked points so those were rented out and paid for three years of maintenance fees. Recently, I sold points to help pay for a spring break trip and still had enough points left to have a room for the week. If you can rent your points and hold onto DVC, do it. There may be other ways to cut your debt. If not you can always sell and repurchase when your finances are in better shape.

We don't want to wait to take these trips. We just turned 50 and know way too many people our age with health problems or that have passed away. Our kids are 18 and 15 and we're hoping that they still want to travel with us and if not, we will certainly use the points. It's nice to know that in the late winter we have a place to escape to and since we know it so well, it's pretty much a hassle free vacation. You should have seen my DD navigating the parks this last time - she's a pro.

We'd love to be debt free and will sell if we have to - but, the years go fast and kids are only young once. My mom always said go while you can - while you have your health, your youth and someone to go with. That's what we're doing as later in life she did not have her health or youth and rarely went anywhere.

We could just rent a room but I know we would not... it's kind of like the someday I'm going to sail around the world. Unless you have the boat and the time off you're not going to do it. We have the boat and we're going to sail! Hold on to yours if you can.

 

[crisi]

And remember - no one every said on their death bed, "I wish I would have worked more."

But my brother in law did say while divorcing his wife - "we might still be married if she could have managed money better."

 

[eliza61]

All I can say is, Quality of Life.

What is important to you? Sure there has to be balance, but at what cost. Being debt free is good, but not if it works you into an early grave.

Could not have said it better. We financed our DVC purchase (I paid down the 10 year contract to 6 years) I have 2 months living expenses in a 3 month cd for emergencies, I contribute 7% of my income to my 401K, I'm saving in a 529 plan for my kids college tuition, I try to help the less fortunate and yes I have some consumer debt that I can easily make the payments. Vacations are not a luxury for me, they contribute to my quality of life. working to get only what you absolutely need is not living to me, its exisiting so if I have to pay some interest to go some place I absolutely love, hey I can live with that

 

[J and R's mom]

Since your situation in no way sounds dire, I'd say DON'T SELL. It seems so tempting and sounds like such a "quick fix" to sell, but I imagine that you'd deeply regret it later on down the road. You've already invested 7 years into it. There are only three years left.

 

[Mickey Fliers]

What does Oprah Know about Debt!?!

It's like Dr. Phil telling me about marriage and his failed!

Work and No Play!

j

Dr. Phil's marriage failed? The current one???

I am way out of the loop

 

[DiznEeyore]

Dr. Phil's marriage failed? The current one???

I am way out of the loop

Nope, not the current one. His first one, back in college. (I can't believe I even know this ... )

 

[evaready51]

Don't Sell! Life is just too short. You have three years to go, if you sell you will surely regret it. Try renting points and you might consider a home equity loan.

Oprah has some good shows but she also has the scare factor at time too. Try and figure out why you charged things that you did....maybe you can cut some expenses there.

 

[pogopossum]

We bought ou points and add on and paid them off in 5 years, while still racking up debt on credit cards and loans, paid some of it off, still paying others off, and I would not sell, even though use of points against cost mmay be break even proposition. I happen to think that using points is better than break even.

We would still go on vacation every year, every other year a Disney vacation, and would have to pay for lodging, or stay with relatives. I treat the points as a budgeting tool, spread the cost out over 12 months (dues), instead of our old method, which was to charge and try to pay off in 12 months or dedicate 2 to 3 paychecks at vacation time to pay for lodging, which then throws off paying bills. So for us it makes sense to keep points, in order to budget vacation more effectively.