for the love of mickey and all things disney, would you ever???

[alicia1506]

so you all know i struggled at the end of last year and the beginning of this year. we came back from our trip all happy & excited, and i'd had a few bouts of sickness, but nothing too bad. then whammo. over the november -march period, i was hideously ill all the time, in & out of hospital, almost lost my job, i think i paid for my doctor's youngest kid's trip to france .... so that was 5 mths of practically no income for me, living on just carlo's income and struggling financially -- and we've already pre-booked our dream disney vacation for this year and some of you have been kind enough to follow our 'how will he pop the question' suggestions thread... so this is a big trip, our wonderful over the top, first trip as a couple trip .... but...

no matter how i work the numbers or scrimp or save, i cannot make this trip any cheaper than it is, and it will likely blow out if the us dollar rises against the aussie dollar, which knowing my luck, it will do.

we're not at the 'do we or don't we cancel' stage ... yet. but each pay that we can't quite meet the savings plan i've drawn up... my stress levels rise a little more, and we fall just a little further and further behind our ideal savings target for this trip....

but today i was browsing the interwebs and saw an ad that got me thinking... which is a little dangerous, but still... some people take out loans or get credit cards to help defray some of the upfront costs of a holiday, and then pay it back over time.. with the dreaded interest...

is it something you would do so that you didn't have to cancel your trip plans? we are still able to put $$ away every week for our trip, but i'd love to have the peace of mind of having just a little bit extra in the pocket to be able to cover those expenses.

would you do it? do you think it's smart? has anyone taken out a loan to pay for/help pay for a holiday?? thoughts/ ideas/help anyone

 

[Ms. Shuttergirl]

Alicia - you certainly have had a rough time of it. I'm sorry that you are still experiencing stress over this holiday.

I don't really have any advice for you, without knowing your financial situation. It's hard for any of us to know whether taking out a loan or credit card debt for you to have this holiday is a wise course of action or not. You seem to be a very dedicated saver which is a plus. I would hate to see you slip into debt though even for such a fabulous holiday.

It really comes down to what you are comfortable with long term. Then you will know what is right for you.

Good luck working it out.

 

[alicia1506]

i'm pretty comfortable with having some debt in my life... i mean, that's usually how the financial institutions measure worth is how well you can pay off any debt that you incur...

and it's not like we would be knocked back or it would cause us extra strain to add in a loan payment or credit card payment...

just being in the finance industry, i hear people talking about taking out loans or credit cards all the time for holidays... just wondered if others on here had done it or whether we are all just dedicated savers ??

 

[Caroline NZ]

We don't take out a loan as such. But we do put the trips on the mortgage. And then our annual work bonuses also go into the mortage and hopefully pay for a large portion of the trip. Note though that the interest rate on the mortage is only around 5%, I am guessing the loans you are talking about will be at a higher interest rate than this?

 

[WAMUMOF4]

Alicia I'm hearing you loud and clear I want to get a credit card DH doesn't want to come home from our trip with debt i totally get that. We seem to have expenses cropping up in all directions but before we get to the point of needing a credit card we will change our trips and reluctantly the cruises will be the first thing to go the kids don't know about these. If i could count on our tax and FTB reconciliation things would be different but since that will all be being processed whilst we are away and if DH got an audit this year as well then that money is gone for 12 weeks min

If i remember correctly you guys haven't booked your flights yet is there anyway you could change your dates or cruise out of LA instead to save on money. There is a really good price on the Wonder IGT LA to Miami 14 night repo cruise in Dec.

The first thing i looked at when DH lost his job was changing our flights but because we paid for them in Oct we had to have all our travel completed by then so it was pointless as we weren't going to really benefit.



As Ms. Shuttergirl said taking on debt is something you have to be comfortable with but how will you feel when you come home and have a debt to pay and are saving for your 2013 trip as well only you guys know the answer to that.

Good luck with whatever you decide

 

[battymum]

I guess we are all really in debt for our holidays if we hold a mortgage elsewhere - we could always use that holiday money to pay it down -.

But I know thats not what you were thinking -

As for getting a loan or credit card specifically for a trip - I dont know if I would do it personally -but if its either that or cancel, maybe- How is your health now? Is your job secure? If that is good, then I would maybe take a personal loan, with a fixed repayment amount- better than a credit card where you might be tempted to use it again but I would always have a credit card for a back-up.

Keep in mind that this will set you back in your savings plan for future trips / weddings.

We didnt use credit for our trip - but there were a few other major expenses that came up that we had to use it for, and I seem to be constantly playing catch up with it - I pay it off (mostly) each month - but in the meantime something else comes up that I have no savings for.

 

[alicia1506]

we saved for our entire trip last time from cash... we took the c/card as back up and used it occasionally... but we paid it off and got rid of it after the last one...

my health is good now and my job is back to being great... but still... i'm hesitant... we wouldn't have issues paying it off and it wouldn't be a big deal to still save next year for the upcoming trip...

but the idea of putting that much on a credit card is so i'm leaning towards a loan... but then that's a loan to pay off...

maybe i'll hold the idea in reserve and see how our tax returns deal for us...

we just looked at RCI instead of disney... and no. we're sticking with disney. we don't want to compromise our dream trip ... so now i'm still a little stressed...

 

[BecBennett]

My sister and her boyfriend got a loan for their holiday when they came to our wedding. They could have just come for the wedding and then gone home like my parents and brother did and not gotten a loan, but decided that they wanted to see the sights a bit, so they did San Fran and went skiing at Whistler, and to do that they got the loan.

Personally I would have preferred that they not do it that way, because she delights in telling me that she's still paying off my wedding, but I'm glad they made a holiday of it...

 

[lwake]

Hi:

I hate to sound dismal and negative, but if you need to take out a loan of any kind for a vacation or holiday, then the trip isn't worth it. Keep saving until you have the cash to pay for the trip. This, people, is why our countries are in so much debt. People want it all now at any risk. You will feel better if you wait and go when you can really afford it. We've been to WDW seven times and have done DCL Dream, too. We are headed back in September and cruising in April 2013. We never stay at value resorts, generally deluxe, and have never gone into debt for a vacation. We plan accordingly and pay as we go. If it looks like we can't afford it, then we extend the date of our trip until we can afford it. You may want to rethink your plan. You will feel better about your trip. Trust me!

 

[Aussie Wendy]

I'm a Libran so all for compromise-can you still do a scaled down trip that is cheaper and you can afford with only minimal $ put on a low interest loan (not a credit card as their interest rates are awful)? As others have said this depends on the security of both of your jobs, your other financial commitments etc. I would only do it if I was confident I could realistically repay within 3-4 months on return without compromising anything else needed to live on.

When we were young our first big trip overseas was mostly paid for up front (airfares, bus tour, campervan hire, all the major accommodation) but some spending money was borrowed as we had bought a block of land 6 months earlier and used spare cash on all the up-front costs but we both had secure jobs we were returning to and had budgeted we could afford to repay house and trip loan and rent. If you did this I would set a limit of $x with a plan it will be paid off at $y/week within eg 3 months or 6 months of returning home. Depends on who you are-do you have huge credit card bills each month you have to try and pay, do you over-estimate what money you have to spend and over spend regularly or are you generally careful and good with money management?

If you are also planning a trip in 2013 though (behind the times sorry) then I would also consider sacrificing the 2012 trip and go all out for 2013 with no loans and no worries as time goes so fast-2012 is half over and 2013 will soon be here. I presume is 2013 wedding and honeymoon? If so do you need a huge treat this year even though you have been so looking forward to it and been through such a bum time. There are lots of romantic and fun places in Aus/NZ that would also be a cheaper hol with the right airline and accommodation deal.

 

[Luisa]

Hi Alicia, I'm in the finance industry too. Not sure who you work for but with my bank they have something called a flexi loan, its like a credit card in that its a revolving line of credit - if you spend nothing you owe nothing, I think you don't even pay the monthly loan fee if you don't use it. Maybe something like that might work for you, you could consider taking out a loan like that then see how you go with your saving. If you really need it, its there and if you don't then it really hasn't cost you anything and you close the facility down. More than anything it might just give you some peace of mind that you have something to fall back on in a 'worst case scenario'. Ultimately though, its whether you feel comfortable with borrowing for a holiday - me, I'm all for having a great time and worrying about it later (I'm ok with 2 minute noodles for dinner.....I'm so irresponsible, thank goodness I never had kids.....)

 

[alicia1506]

Hi Alicia, I'm in the finance industry too. Not sure who you work for but with my bank they have something called a flexi loan, its like a credit card in that its a revolving line of credit - if you spend nothing you owe nothing, I think you don't even pay the monthly loan fee if you don't use it. Maybe something like that might work for you, you could consider taking out a loan like that then see how you go with your saving. If you really need it, its there and if you don't then it really hasn't cost you anything and you close the facility down. More than anything it might just give you some peace of mind that you have something to fall back on in a 'worst case scenario'. Ultimately though, its whether you feel comfortable with borrowing for a holiday - me, I'm all for having a great time and worrying about it later (I'm ok with 2 minute noodles for dinner.....I'm so irresponsible, thank goodness I never had kids.....)

seems like a thought...

just to clarify... we aren't cash strapped. and this holiday is our big couple's holiday.. next year we're going with family and we haven't planned the wedding & honeymoon.

we don't need to borrow this money. we have savings and we are good with our money. we have savings plans and regular savings and trip savings... so this was more of an idea to have as a back up for peace of mind, rather than ... omg we can't go if we don't get this ... kind of thing..

thanks for the thoughts/suggestions though... helpful to see it from other's perspectives...

 

[Ms. Shuttergirl]

Hi Alicia, I'm in the finance industry too. Not sure who you work for but with my bank they have something called a flexi loan, its like a credit card in that its a revolving line of credit - if you spend nothing you owe nothing, I think you don't even pay the monthly loan fee if you don't use it. Maybe something like that might work for you, you could consider taking out a loan like that then see how you go with your saving. If you really need it, its there and if you don't then it really hasn't cost you anything and you close the facility down. More than anything it might just give you some peace of mind that you have something to fall back on in a 'worst case scenario'. Ultimately though, its whether you feel comfortable with borrowing for a holiday - me, I'm all for having a great time and worrying about it later (I'm ok with 2 minute noodles for dinner.....I'm so irresponsible, thank goodness I never had kids.....)

This sounds like a great solution Luisa.

 

[alicia1506]

so i've decided... after tossing up all the good/bad/ugly sides of this situation...

we'll just keep saving our little tushies off and we'll make it happen.

thanks for the feedback on this though... it's been helpful to see how many of us are all dedicated savers

 

[BecBennett]

Best of luck with it!

 

[Ms. Shuttergirl]

so i've decided... after tossing up all the good/bad/ugly sides of this situation...

we'll just keep saving our little tushies off and we'll make it happen.

thanks for the feedback on this though... it's been helpful to see how many of us are all dedicated savers

As I said before, Alicia you are clearly a really dedicated saver and I feel very excited for you that you have a renewed drive to make this happen.

But with that said, I think you were offered up some great ideas here if you fall a little short.

 

[miss.potatohead]

I'm a lurker of sorts and do read most threads here but don't tend to comment all that often, but Alicia your dedication to saving for your trip has really motivated me to do the same. This isn't that relevant to your main conundrum but I'm saving myself (for what, I don't know...a car, but preferably travel). Between uni and work I manage to get in around 15-20 hours a week of work which gives me more than enough income (hey the joys of still living at home) and as tempting as it is to go for a shop on ASOS or whatever online, the money is transferred straight into my high interest account so I can't touch it.

For me, purchasing big ticket items (my latest one was a macbook) with my own money is much more rewarding, as I know that I've earned every cent of it. Probably a little different when you have other expenses to worry about, but that's just my two cents Good luck and whatever ends up happening, I'm certain it'll be for the best.

 

[Mum from oz]

I'm a lurker of sorts and do read most threads here but don't tend to comment all that often, but Alicia your dedication to saving for your trip has really motivated me to do the same. This isn't that relevant to your main conundrum but I'm saving myself (for what, I don't know...a car, but preferably travel). Between uni and work I manage to get in around 15-20 hours a week of work which gives me more than enough income (hey the joys of still living at home) and as tempting as it is to go for a shop on ASOS or whatever online, the money is transferred straight into my high interest account so I can't touch it.

For me, purchasing big ticket items (my latest one was a macbook) with my own money is much more rewarding, as I know that I've earned every cent of it. Probably a little different when you have other expenses to worry about, but that's just my two cents Good luck and whatever ends up happening, I'm certain it'll be for the best.

Alicia,

I think you are doing well with your savings and goals. I would not take out a loan or credit card specifically for a holiday but I don't think having the idea for back up is bad either. I know personal loans can be approved and in your bank within a few days. Maybe stick to your plan and if in the final hour you fall short you have that as a back up. Also maybe skimp on things such as shopping and souvenirs and just make it mostly about the experience. Good luck I know it will be worth it all in the end.

 

[alicia1506]

Alicia,

I think you are doing well with your savings and goals. I would not take out a loan or credit card specifically for a holiday but I don't think having the idea for back up is bad either. I know personal loans can be approved and in your bank within a few days. Maybe stick to your plan and if in the final hour you fall short you have that as a back up. Also maybe skimp on things such as shopping and souvenirs and just make it mostly about the experience. Good luck I know it will be worth it all in the end.

awww thanks -- this is kinda where i was thinking about it too... after tax returns and sort of when we're in the final months etc, if we wanted to, we could get the extra $$$ if need be as a bit of a back up..

moving forward... now to try and find more accomodation deals... stupid favourite accomodation place of ours just went up hugely in price. almost comparable for the price to staying on site at PPH -- except that is miles away from the front gates and we want to be as close as possible for as cheap as possible while still maintaining a level of safety/cleanliness etc...

 

[Sugarglider]

Alicia - everyone has already given you encouragement about limiting your debt on consumables like holidays - but - one thing I have done, and continue to watch is citibank credit cards.
Over the past 8 years I have watched them regularly put out very good interest rate offers for when you open a new account and transfer the debt from another card. 8 years ago I got 4.9% for the life of paying off the transfer! Last year I got 1.9% for 15 months. Then I divided the debt into 15 payments, set up autotransfer in my internet banking, put the card away and didn't use it. The interest rate if you start using those cards is something usually shocking like 23% or more.
Of course the problem is that you are still paying off the old holiday whilst planning for the next one. Very hard to get ahead!