Who said you have to vacation every year? I just don't get it personally UNLESS I am debt free, have an EF in place, putting the %s in my retirement, college for kids started and I've actually saved up money in my vacation fund!
I would pay the $5K off on my credit card from the $23K you have in savings, assuming its not retirement, etc.
So now you have $18K. IF you have NO other debt [car loans, 2nd mortgage, Sears, etc.], then you can go on vacation.
Leave the rest in your EF.
IF you do have other debt, no vacation YET...
pay it off as soon as you can...build up an EF in case someone is laid off and then go on vacation!
We took our first expensive vacation when our oldest of 3 was 6 years old. We survived! Really....Until then we camped and did little weekends here and there. We went to WDW of course! LOL. And only spent $3K TOTAL on family of 5 with air etc. We went again 1.5 years later with the code last year and only spent $3600 TOTAL with air, etc. and nicer digs to boot.
We take them camping in the summer. They love it too. We're hoping to do Mackinac this summer for 4 nights and spending $1K+ which we've saved.
You save up and go on vacation. It's not a necessity, it's a luxury. You asked for opinions. That's mine.
I haven't read any responses but I'm sure most told you to go, this is the DISboards afterall. So, I'm guessing you're going to WDW.
Enjoy! Have a great time!
I'm editing because I read the above poster and it ticked me off...sorry. I was asked my opinion and I'm giving it. It doesn't make sense to me to have credit card debt and make PAYMENTS to someone other than ME when I have money sitting there. I use a credit card and earn points. I just received $500 in the mail for my points thank you kindly. We pay EVERY month. We don't charge unless we have money in our account. I don't pay interest because I don't carry balances not because I received a 0% offer in the mail. If OP gets laid off and they have now charged the vacation + the $5K on the 0% credit card and they're a second late it's no longer 0% and it could even be double or more what they thought because now the credit company thinks they're 'a risk' since they paid late....do you think they'll be better off? Do I think I'm better than you CarolA? Not at all, but I've been where you are and where I am and I feel safer here. And I read the whole of OP's post..yeah for me!
I know for me personally when I am so excited about something I want everyone to feel the financial peace I have...it's like when you get a great deal on a camera an exercise program or a disney trip or even when I find a great book, I want everyone to experience it too. I do understand that there are some circumstances where a a vacation or something that may not make finanical sense really is better to do now [child with illness, grandmother's last trip, a brother's wedding, something like that] but those situations are few and far between and I have done my share of justifying trust me. I like to think that I'm not just older...I earned these crows feet, I'm wiser too.
Trish