How often is too often? - Tax refund burning hole in my pocket!

[Marionnette]

Yes, tight means almost at the limit. I haven't had this problem for a long time. I actually have gone through Financial Peace and have been telling myself it might be a good time for a refresher. I never got to fully free, but I did have the CC paid off then I have run it up again. I only have 2 cards and the newest one is that dang Disney VISA, but it has a low limit. If I can get the bigger one down to maybe half by time to book the Christmas trip I would be comfortable.

This is where being single sometimes isn't always so great. I don't have that built-in confidant or cheerleader to help get me through. It helps that other Disney-lovers can be the voice of reason.

I like the gift card idea. I have seen other threads where people buy the gift cards every so often to help save up. I may start doing that every month or so.

Neither of the cards have a particularly high interest rate, but I may look around and see if I can find a no interest offer to transfer the main card to. Thanks for the support and ideas. Geckodani, I will check out the other forum too.

I'll preface my post by saying that I hate all kinds of debt, but credit card debt just really rubs me the wrong way. I understand that a lot of people carry balances and manage to live happy and productive lives. It's not for me and I think we are happier people because we don't carry debt.

You say that you're almost maxed out on your cards but you excuse it because they have low limits. The limits don't matter. It's the fact that you've taken your cards to a level that pushes their limits that matters. So, with that in mind, why would you look for another credit card so that you can transfer your balances to it? Are you going to close the other credit cards out so that you can't run them up again?

Do you know what happens when you make a purchase on a card that has a balance with a promotional rate? You lose your grace period. That means your purchases start to accrue interest from the time that the purchase is made and it keeps accruing. When you pay off your credit card in full each month, you get a grace period with no interest charged from the time that the purchase is made until the time that the bill is due.

You don't need another credit card. You don't need to be buying Disney gift cards every month. And you don't need another trip. Take your refund and other found money and pay down your credit cards. Then close the cards. It will prevent you from digging yourself into a hole again.

 

[CammelleandBre]

I'm going to be in the minority, and say go! You only live once you never said you were strugguling financially. Only that your cards were a little tight. Remember, your not guaranteed tomorrow, so live for today. It just amazes me that 99% of the budget boarders, are debt free, and always pay off their whole balance at the end of every month. Like I always tell my dd, a person can say anything, but it doesn't make it true. Flame suit on.

 

[pocomom]

I'm going to be in the minority, and say go! You only live once you never said you were strugguling financially. Only that your cards were a little tight. Remember, your not guaranteed tomorrow, so live for today. It just amazes me that 99% of the budget boarders, are debt free, and always pay off their whole balance at the end of every month. Like I always tell my dd, a person can say anything, but it doesn't make it true. Flame suit on.

I get the whole you only live once. Especially since I have a daughter who has medical issues and may not have the longest life. We have structured our life to have a lot of fun, and new experiences for her. But living in debt is not a life, it is stressful. And what about when something comes up like an illness, loss of job, car repair. OP says she is on her own, and while it means she only has to care for herself, it also means she is the only one she can depend on. She is also probably in her 40's based on the college dates. Getting debt low, non-existant is important at this age, if she is going to put enough in retirement to enjoy the rest of her life. It is all about finding balance and if you have a balance on your cards, you are not balanced yet.

 

[Marionnette]

I'm going to be in the minority, and say go! You only live once you never said you were strugguling financially. Only that your cards were a little tight. Remember, your not guaranteed tomorrow, so live for today. It just amazes me that 99% of the budget boarders, are debt free, and always pay off their whole balance at the end of every month. Like I always tell my dd, a person can say anything, but it doesn't make it true. Flame suit on.

That's okay. It always amazes me when the "live for today" people always assume that people who say they are debt free must be lying.

 

[POOHsie]

Pay down the CCs with the checks you are getting. The checks are a windfall for you -- not for another fun trip, but for paying extra towards your debt. Don't run them up again. You should save cash for your vacations, or purchase Disney gift cards. If you have high CC balances, and no savings, and no plan to pay off your CCs, you really can't afford a vacation right now. I sense that your 3 WDW vacations in 14 months and your high credit card balances are inter-related. I love to go to WDW as much as anyone, but I skipped from 2010 to the end of 2012 because I needed to put some money away for other things. It was hard but that made the 2012 trip ever sweeter. It was paid for strictly from my savings acct.

 

[disykat]

That's okay. It always amazes me when the "live for today" people always assume that people who say they are debt free must be lying.

I was thinking the same thing.

Most of the people I know in real life live following the "don't spend money you don't have" rule and see debt as something you incur only for a house, car, college, or emergencies, so these threads where people think carrying debt from regular expenses is normal come as a real shock to me sometimes.

 

[davedmaine]

Do the smart thing and pay off your credit card debt first..

 

[golf4miami]

I was thinking the same thing.

Most of the people I know in real life live following the "don't spend money you don't have" rule and see debt as something you incur only for a house, car, college, or emergencies, so these threads where people think carrying debt from regular expenses is normal come as a real shock to me sometimes.

Surrounding yourself with those "don't spend what you don't have" people is a great thing. However, I remember it wasn't that long ago that Americans had a NEGATIVE savings rate for the first time ever. People were spending more money than they made in a year. Luckily that trend is reversing!

I'm with everyone else in saying that there is a huge weight lifted and a great sense of freedom that comes from paying off debt. I can't wait till my student loans are gone.

 

[mrsklamc]

you never said you were strugguling financially. Only that your cards were a little tight. .

See when I read that, it's the same thing.

And I really do get the 'you only live once' thing, but there has to be a balance and it's not like OP hasn't been recently.

 

[Grandmatoniko]

Hi,
I can totally understand the want to go. We did our taxes today and are getting enough back that we can afford to go and it is killing me not to book something but I am trying to wait til my hubby says 'go ahead'.....good luck with waiting

 

[hsmamato2]

my credit cards are getting really tight and I want to put some of the money on those. But I really, really, really want to take at least a short trip to Disney in April before it gets too hot for my liking. I still plan on the Christmas trip too.

So, am I getting carried away with all of these trips?

well,you're on the budget board,so I'm going with a 'yes'. You are getting carried away. Pay off your bills first. If you are carrying a cc balance,pay those. Than start saving for your emergency fund. Then save for your next trip. you asked.

 

[hsmamato2]

I'm going to be in the minority, and say go! You only live once you never said you were strugguling financially. Only that your cards were a little tight. Remember, your not guaranteed tomorrow, so live for today. It just amazes me that 99% of the budget boarders, are debt free, and always pay off their whole balance at the end of every month. Like I always tell my dd, a person can say anything, but it doesn't make it true. Flame suit on.

you're going to need that suit....that is absurd. especially as a single person,OP needs to have plans in place to not only enjoy her 'today',but also to ward off future problems if say,she loses a job,gets sick. etc.
Credit card debt is not good,and carrying a balnce,evn on cards that have a 'low rate' means you can't afford whatever it is you've been doing,so yes,OP,please scale back,breathe,pay off some bills,and try to live with what you can afford. take care of yourself!

 

[mickey1968]

Wow, it looks like I chose the right place to post my question! I really appreciate the passionate input from everyone on both sides! Your words have been what I needed to hear to calm my impulsive need to book a trip.

I have never been one to really feel like I couldn't enjoy life if I had any credit card debt at all, but I do remember how good it felt when I had paid them off once before. I don't think it has to be one extreme or the other and each person's "balance" is different.

Thanks again.

 

[disykat]

I do get what the pp means by "keeping things in balance" and living your life, but it makes me uncomfortable to talk about "balance" when people are talking about unsecured/credit card debt. To me, the balance is already off if you are spending money you don't have. By definition, if you don't have the assets to pay off the debt in full, you are "underwater" and that's where the expression "drowning in debt" comes from. While there might be a time credit becomes a necessity, such as an emergency, to me I would do so knowing it was the very definition of my finances not being balanced. My goal would be to get out from under that water!

While some people might be more comfortable being in the hole than others, I think using words like "balance" to describe a negative financial situation gives us false notions of where we stand. Have we really gotten so comfortable with debt than we don't understand that being in debt means being under zero?

Maybe if people pictured a scale with assets that could generate cash on one side vs. debts on the other it would help them see if they really ARE in balance!

 

[ilovemk76]

Yes, tight means almost at the limit. I haven't had this problem for a long time. I actually have gone through Financial Peace and have been telling myself it might be a good time for a refresher. I never got to fully free, but I did have the CC paid off then I have run it up again. I only have 2 cards and the newest one is that dang Disney VISA, but it has a low limit. If I can get the bigger one down to maybe half by time to book the Christmas trip I would be comfortable.

This is where being single sometimes isn't always so great. I don't have that built-in confidant or cheerleader to help get me through. It helps that other Disney-lovers can be the voice of reason.

That return money is already been charged on your card and it has been accruing interest from your first check of 2012. The best thing would be to pay it all toward it and then adjust your W4 to get that extra in your check. Each paycheck or so, add that extra money against your CC.

 

[beansmom]

Wow, it looks like I chose the right place to post my question! I really appreciate the passionate input from everyone on both sides! Your words have been what I needed to hear to calm my impulsive need to book a trip.

I have never been one to really feel like I couldn't enjoy life if I had any credit card debt at all, but I do remember how good it felt when I had paid them off once before. I don't think it has to be one extreme or the other and each person's "balance" is different.

Thanks again.

i think you already knew the answer when you asked. personally, i would put half on my credit card balances and half in an emergency savings account. fun is well and good but not if you have to fret about bills when you get back home.

disneyworld will still be there next year and the year after.

yes, do the grown up thing and take care of your debts first.

You might also consider doing the 52 week money challenge to establish a savings plan. It's painless and it is a lot of fun to watch your money grow.

http://ptmoney.com/52-week-money-saving-challenge/

 

[Crystal Brewer]

No punt here yet I mentor and one of my faves is-"Ya gotta keep your head up before you can let your hair down" some will know the song it's a cute jingle to remind all drowning in debt isn't fun you can "pretend" yet you will truly never experience the freedom of enjoyment-Save to play

 

[crisi]

I don't think that credit card debt is necessarily an all or nothing sort of thing. But...

1. You have enough debt that it sounds like it will take you months to pay down half of one of your cards. That isn't carrying a little balance, that's into "if I loose my job, I'm screwed" territory.

2. This isn't a once in a lifetime trip or a trip because mom has cancer or a trip because if you don't take it soon the kids will be too old for Disney. This will be your fourth trip in a year and a half simply because you enjoy it.

3. You are in your mid 40s. By now you should have a lot more financial stability than you appear to. Retirement is sneaking up on you.

Now, there could be additional info we aren't privy to (one of my OKC friends has in laws with oil on the property - quite a bit of property and quite a bit of oil apparently - he isn't rich, but he isn't going to starve - he doesn't bother to save for retirement, his wife is inheriting the family oil business and a lot of cattle, too. He just has to keep her from divorcing him and he doesn't need to worry about it . I have been known to carry credit card debt, in fact, I don't think I've paid my credit card bills in full from Christmas yet - but I have a fairly significant net worth and didn't want to liquidate some savings to pay them off. (That's actually a simplification, the credit cards are paid off with the HELOC so I get a lower interest rate and a write off, but I do have debt at this moment in time)

 

[mm1971]

Hello, my name is Mickey1968 and I am addicted to Disney vacations!
Over the last 14 months or so I have been to WDW three times! I was going to MAKE myself wait until the Christmas season to go again, but now my tax refund and another unplanned check are burning a hole in my pocket saying "go, go, don't wait."

Here's my story...I fell back in love with Disney last year at Thanksgiving after not visiting for nearly 10 years. I am a former College Program cast member (1991) and would visit pretty much once a year throughout the 90s. Then somebody got me started going to Vegas instead (fun, but so not the same!). I seem to think I need a vacation about every 6 months. Problem is, I live in Oklahoma and we don't seem to get those great airfares that you North Easterners get. $300 round-trip is good for me.

Anyway, I'm single so I only have to worry about me, but my credit cards are getting really tight and I want to put some of the money on those. But I really, really, really want to take at least a short trip to Disney in April before it gets too hot for my liking. I still plan on the Christmas trip too.

So, am I getting carried away with all of these trips? Do any of you have the same "issue"? What do your friends and family say if you go pretty much everytime you turn around?

Being single, you are in a different position than I am with a family. However, since you already have a Christmas trip planned, I would suggest you not go now and put the money towards your CC and put yourself in a better financial position. This is the advice I would give to my DD if she were old enough to be on her own. The old saying, "absence makes the heart grow fonder", is good for this situation.

I would have no problem going as much as possible if your finances were in order and you had no debt to worry about. Take care of the debt first and save up for the Christmas trip so you don't need those cards any more.

And just FYI, I really don't care about others' opinions about my vacation habits. If my finances are in order, I am saving for retirement and have no debt, how I choose to spend my vacation is my decision.

 

[StitchesGr8Fan]

Good decision not to book the trip OP.

As a DR graduate you know his saying - a child does what feels good, and adult devises a plan and sticks with it. In this case, you have done what you want when you want, even though you don't have the money. I would agree that you should go through the DR materials again, and try to take them to heart this time so you make a permanent shift in your thinking.

A PP is right. You are on your own. If you lost your job tomorrow, what would happen? How are you going to support yourself in retirement? All scary and tough questions, but something all adults need to ask themselves.

If you want motivation, look at your CC statements closely. It will tell you how much you pay in interest each month, and how much you are paying over the life of the debt if you pay the minimum each month. You could take several WDW trips with the interest you are paying. CC companies aren't loaning you money out of the kindness of their hearts. They are making money off of it.