"moral" money dilemma...

[DawnAK]

So, to make a long story short...
DH and I have recently "fallen into" about $4,000. We are pretty excited that we can use some of this money to take a trip to WDW. We live in Alaska and will be flying to Colorado to visit family at the end of December. We will be there 4-5 days, which I find hard to call our "winter vacation". So, we are trying to decide what to do after our short trip to CO. We could "A", just come home and save the money, "B" go to Vegas for 4-5 days, or "C" go from CO to WDW for 7 days. The dilemma is this:
DH & I ( no kids) have serious CC debt. We both work full time and are able to pay our monthly bills, but CC debt & interest rates are so high, the balance just doesn't get much smaller month to month. So, if we took a trip, it wouldn't come out of our monthly income at all, and I refuse to use CCs at all! So, it would all come out of this "free" money that we have been given (through work bonuses and such). As you can see, the Angel on one shoulder is saying to save the money and put it towards debts, but the little Devil says its extra money and we should have fun with it.
Any advice? Should we listen to the angel or devil???
Thanks! Dawn

 

[minnie1928]

Pay down your debt, I know it doesn't sound very exciting but it's probably the best thing to do right now. Your cc interest has no where to go but up, so paying down a large lump will help with your future payments when interest rates rise. If you still feel you need a vacation, go cheap, very cheap and pay cc with the left over money.

 

[vickyBaby]

Pay down your debt. You'll feel so much better when you get your statement and see a big chunk of your debt has been paid off.

 

[raysnkaysmom]

Ok...the RIGHT answer is pay some debt... MY answer would be go to WDW
It's just that this is what I've done...and I really don't regret it! I figure life is too short not to have fun. The bills will always be there..if not those..then another.
Now..on the other hand..if you're gonna get this 'free' money again next year...I'd wait one more year...then you'll have less worry on your shoulders!!

 

[Lewisc]

The danger is you'll take the trip, spend more than $4,000 and be in WORSE shape.

 

[my3kids]

Pay on the debt. Just think how much more you'll enjoy a trip to WDW when you don't have a huge bill waiting to be paid off at home.

 

[Misty89]

*

 

[PhotobearSam]

Maybe 1/2 and 1/2...

Pay 1/2 of it towards the debt and 1/2 to go to DISNEYLAND for 2-3 days...

 

[imsayin]

we have debt too - i think everyone does but does not admit it.

Not to brag, but the only debt I've had in 15 years is my mortgage.

I suggest that you extend your stay while in CO for a few days, stay in a hotel without family around and make a "mini" vacation there. You will save tons of $$ in airfare and just spend a little of your $4,000 on hotel & food. If you have a chance to decrease your credit card debt, go for it!

 

[MrsPete]

It may not be fun, but pay off the "serious" credit card debt. If you don't, it'll always be there hanging over your head. You'll feel good about it once you're done with the debt.

Misty89 -- No, everyone doesn't have debt. When my husband and I were first married, we decided that we'd live well under our means so that we could avoid debt. I grew up in the type of family where kids had to wait for needs (shoes, glasses), and I didn't ever want to tell my kids that I'd try to have them a warm coat before the real cold sets in. I'm 38 and I have no debt (not even a mortgage). Yes, we've done without WANTS, but we've never done without NEEDS. It's wonderful to know that my house is MINE, my car is MINE, and the only things I'll owe next month is the electric bill and the phone bill. It's also amazing how much farther your paycheck goes when you're not paying interest to everyone.

 

[tinkerbell13]

Pay it off!! One year after finishing paying off our debt, we are living in a bigger(much needed) house and taking our first trip to WDW! We have almost the whole trip paid for(we did use a credit card to purchase our airline tickets and park tickets) and it feels so good to know that we can do it!
That being said, get yourself on a plan to pay off the debt( I recommend Mary Hunts cheapskate monthly) and use the money to go on the trip!

 

[hookedup]

Pay off your debt!!!!
Credit card debt is the worst - as you probably already know too well. It's like a blackhole that sucks you dry and never seems to go away.

All I can say is the only way you will ever be free of it hanging over your head is to be to the 'responsible' thing and put as much of your windfall toward paying off your credit cards. In the short term not a fun way to spend the money, but you asked for advice so it's what I have to offer.

I was in a serious credit card debt several years ago. My dh and I worked really hard to become debt free. We only have our mortgage now and I can't tell you what a tremendous feeling it is to have that monkey off our backs! We really enjoy life now and when we do travel and slurge we enjoy it 100 times more.

Have a safe trip!

 

[LisaZoe]

I'm also going to vote with the majority to pay off the debt - or as much as this money will pay after your trip to CO.

I too got myself into a pretty deep debt hole after college. I was living on my own, paying off student loans and not making much money. The CC just seemed to be an easy way to do a few extras that didn't cost much. Boy, was that a mistake. I had 4 or 5 CCs none with what seemed to be high balances but I decided to take advantage of a no-interest period on a new CC to pay off the balances of the others so I'd have only one payment to make. To say I was shocked when I saw the combined balance was over $7000 is an understatement. It may not be much compared to what some people have but it was a lot of money to me - still is.

Once I was able to get that paid off (took 3 or 4 years being very budget minded and frugal), I felt so much better. What also amazed me is that I felt I had so much more money available compared to when I was only paying the minimum amount. Since then, the CC is paid off each month and the only other debt has been car payments (paid off early) and, for the past 4 years, my mortgage.

WDW will be there for years but do you really want to say the same of your CC debt?

 

[Ozymoe]

Someone asked you earlier if this "windfall" was going to be a one time thing...or if you would probably be getting it again next year. If the answer is that you probably will be receiving these bonuses again next year, I would advise taking your Colorado vacation (family is so important) but keeping your expenses as minimal as possible and putting every penny left over towards the credit card debt.

THEN...every single month from now on DO NOT USE THE CCs for ANYTHING.

Start reading these boards in order to plan the WDW vacation you will take next year or possibly the year after that. If you find you can meet your monthly bills, and make a double payment each month on at least ONE of the CCs...and maybe put away $50 each month for your vacation fund (I know that $50 doesn't sound like much, but start small so you can accomplish it)...if you can do this and you still feel that you need to go to WDW next year...then you can add it to half of your (next year's) bonus and use the other half of your (next year's) bonus to pay down your credit card debt.

Your cc debt will strangle you once you have children if you don't get it under control now.

There have been a couple of good threads on this Budget Board giving excellent advice on how to cut down expenses...and some are almost painless to implement! I havent figured out how to make links or I'd make some for you to them. Maybe someone who knows how will do this? Anyway, if you scroll a bit you'll probably find them.

Good luck and keep talking to us...let us know how you are doing!

 

[RobinMarie]

I say pay half down in debt and use half for the airfare/hotels. The spending money you should save between now and your trip. Your debt is only getting larger with interest and whatnot.

 

[mamalle]

I would do half and half. good luck with your decision

 

[disneysteve]

Originally posted by DawnAK
So, it would all come out of this "free" money that we have been given

Sorry to be blunt, Dawn, but this statement just jumped out at me. The fact that you look at $4,000 as "free" money while you are in "serious CC debt" just doesn't make much sense.

Unfortunately, debt won't just go away unless you make a serious effort to change your spending habits, tighten your belt and use any "extra" money to pay it off. So as much as you might enjoy a Disney trip (wouldn't we all), I'll have to go along with the majority and say to be responsible and put the "free" money toward your debt. You'll be much better off in the long run.

 

[tinkerbell of winter]

pay the credit card debt
i'm so glad i only have about 750 left in cc debt

 

[ajksmom]

DawnAK,

Ask yourself the following questions-

Do you like to have that CC debt hanging over your head?
Is it a pain in the rear to make those pmts every month?
Would you like the equivalent $$$ that you are making on pmts to go towards a savings acct. that you can use for a home, car, and vacation?
Can you both guarantee that your income in the future will be enough to pay off this debt?
Do you know how much interest you are paying on this CC debt?
Do you like giving your hard-earned money away?
If you make this lump sum pmt do you realize how much quicker you'll be out of debt?

I think you are lucky to be able to take a 4-5 trip to Colorado!! Others would love to be able to see family who are far away.....

Take your trip to Colorado, while there keep in mind that every dollar you don't spend there is one being used to get you closer to a WDW vacation. Keep that attitude when you get home. Get rid of that CC debt ASAP. Your life will be better and you'll be planning sooo many more vacations once everything you buy doesn't have an interest charge attached to it.

 

[Misty89]

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