Totally debt free before Disney?

[Liltx]

I want honest opinions please but be gentle. I want to take my dh to DL for 5 days for his 40th birthday sans kiddos. I have priced it and using our hotel points it will cost roughly $1600-1750.
Here's my delima: We are in some debt. Last year we went to WDW and when we came back were set to pay off the balance when dh's 1998 Jetta totally died so instead of paying the full amount we paid most and put down a big down payment on a new car (now only pay $199 a month for 3 years). Then we had to pay MIL's taxes on 2 houses before they sent it to court and replace the engine in her car. My car also needed a major repair. So in the span of 6 weeks we went from doing well to serious IMO debt. Right now we have a little over $9000 in debt (no interest credit card) and the one car. We will have it paid off by next Christmas and our savings is not great but OK at one months income. We would use our income tax return to pay for the trip and the rest would go to debt reduction. We could also wait to take a trip together until sumer 2009 when it will be our 10 year anniversary.

So here it is WWYD?

TIA
Monica

 

[DangerMouse]

I would wait until 2009. Get that debt paid off and the feeling you will have is better than any magic at Disneyland. Did I just say that?

Have you considered calling Suze Orman? You know what she'd say.

 

[julieannbabe]

hey,

i know its hard - i put my first trip to WDW in 2003 on credit card - then spend the next 12 months or so paying it back.

So now i save up until i can afford a trip to Disney.

this isn't probably what you want to hear but maybe it is best to wait until 2009.

good luck in your decision.

xjx

 

[Dobie]

There are many wonderful internet debt reduction and savings calculators out there. You could use one to figure out long it would take you to pay off your debt AND save for your Disney trip at the same time, and then your trip would be a wonderful reward for your hard work and sacrifice.

 

[victorandbellasmom]

I'm for waiting as well. Take care of the debt first. You'll have much more fun during your trip knowing that it's paid off. It's a bummer to have a great disney trip and then come home and face the bill for several months after.

 

[Ashlotte]

You really will enjoy your vacation more if it is paid for. Otherwise you'll have fun at the time, but there will be the underlying stress of how or when it will be paid for. I know it's not the advice you want to hear, but since you posted on it, I think in your heart you already know it is what you should do. Good luck and enjoy your trip in 2009.

 

[Golfing Goofy]

Another way to look at it is that if you put the vacation on credit, you will ultimately end up paying MORE than what it is worth! It is like you gave yourself an extra tax. Icckkkk.

If you save in advance, you get to spend every single penny on the vacation , not on interest and fees to some banker in a suit.

I know it is a bummer to have to wait, but in the end it will be worth it. You can do it!

 

[blackjackdelta]

I would wait until 2009. Get that debt paid off and the feeling you will have is better than any magic at Disneyland. Did I just say that?

Have you considered calling Suze Orman? You know what she'd say.

I agree with DM. I do not believe in carrying debt over taking a vacation or virtually anything else. For most folks, putting things off like debt, it just gets worse. We have huge college expenses each year that we pay for(no college loans) along with the kids have jobs except the two youngest. We skip many things we would like to do.

Mt two cents.

Jack

 

[LauraAnn630]

We have a little debt. All DOCTOR BILLS!!! I am trying to go on an adult only trip to Vegas and DL.
( first time ever - we take the boys to DW for 1 to 2 weeks every year!)
Im waiting for in-law to say they will watch the boys.

My husband would really like to pay off the doc bills first. But I say we will always owe on healthcare.

We owe about 3 grand now.

If I had credit card debt Id want that paid off before I did anything.

2009 will be here before you know it anyways!! Have fun planing and counting down the days. We counted down a Christmas trip from 13 months and it flew by!!

 

[DorkyDisneyMom]

Happy Anniversary to you!

I think you should pay the debt down too. Just think how much better your vacation will be without it hanging over your head. You can so all sorts stuff without having to worry about the budget. Not that a budget is bad but, it's not as much fun.

 

[lulubelle]

I know it is tempting to go, but I would wait, too.
Good luck, whatever you decide.

 

[Liltx]

I knew we should wait. It's just so hard because we usually take 2-3 vacations every year in addition to our TX coast. But we will wait. We are choosing not to pay off the debt monthly because we have a full year no interest and we are building back our savings instead. Once we hit the three months savings then we will pay monthly on the credit card. Until then we are using our IRS refund which should be half (dh is self employed and must pay estimated tax) and corporate tax refund then will pay off the balance with his bonus in early Dec. Which even if we do not pay anything but the minimum until then will be less 1/4 of that. We always fund our IRA's, 403b's, girl's 529s, and money market accounts with 2/3 of it. We did the same this year which is why we still have this debt but interest building wise it still made sense. We wouldn't add more credit card debt if we took the trip we would just not be paying off the debt we have, which I know is not a good idea. Thank you for being honest. I will just look forward to our trip in 2009. Most likely we will be going to a Sandals resort for our anniversary trip. Maybe we will take the kids to DL too debt free.

Monica

 

[sandymandr]

Best of luck!! I'm so proud of you! You really are making the best decision for your longterm finances! Because you honestly never know what other expenses will pop up between now and then, so get that debt paid!! I hope you have a wonderful time planning in the meantime!!!

 

[DevilDuckie]

We're postponing Disney until we get some debt under control too. Sometimes it sucks being a responsible adult.

 

[daisy_77]

I am glad to see that you are waiting to take that trip. This past year has been tight for us and we are putting off our yearly trip to WDW until May 09 so we can pay for it without using a credit card. I wish we could go right now...but I know that if we put it on a card, we would really regret it. Hang in there....2009 will be here soon!

 

[JadeDarkstar]

i have little debt mostly books i bought for my son and one 35doller dr bill. But I akm still going on our trips. I get one check a year prety nice to me from my dad being in airforce 21 years. Thats what i use for my trips. I have no idea what ill do in 2021 my last year of it.

I dont and cant get credit cards. with how little i make but its ok. I was glade i didnt get the disney card when i tryed for it becouse i would spend to much and i would buy things in dl i didnt need or wouldnt use.

As it is i bought 400 in merchindise this last time, but It was all in the bank when used it even tho i came home stressed for christmas after trip. it still was grate time.

I also tryed for some thing to charge christmas stuff on. i didnt get it and glade now, it was so much in intrest alone.

Save save save then go have fun. sorry you have to wait and hope you guys have a super time for your aniversury

 

[Dukland]

I know it's hard to wait until next year, but you'll feel better if you do. We took a trip to DL two summers in a row. We intended to go last year, but added a new member (through an expensive adoption) instead. It was very hard to go through last summer without a DL trip. We probably could have done it with our taxes, but it would have put us in a really tough situation financially. Not really a smart move!

We are doing better this year, and plan on going to DL this summer. We will pay for it with our taxes, and still have money left to go for our debts. No, we won't be debt-free still, but we will be in a much better position than we would have been, had we gone last year. We will enjoy it a lot more this year, too!

 

[AndyLL]

I guess I'm the only dissenting view.

1st of all your debt is non-typical for the standard American. It was one time outlays ( and a bunch of them at once ) and not a general pattern of overspending on credit.

It sounds like your family is very disciplined in your financial habits... that colors my answer.

You already have a plan to pay off your debt so it comes down to 3 questions IMO:

1) Is it possible more expenses will come up during the year? (cars are fixed but are their other mil issues?)
2) How secure are your income(s)?
3) How much extra will it cost you to extend your debt.

Based on my calculations on not enough information you will be extending your debt 3-4 months.

That's $100... maybe a little more in interest. Cut one day off your vacation and it's paid for.

If my calcs are reasonable and 1 & 2 are not big issues then I say go for it.

No interest (and at times low interest) debt is not a horrible thing.

The ability to pay off an unexpected $9000 debt in 12 months is fantastic. Extending it to 15 months to me is not that big of deal.


A

 

[Leofoenget]

I want honest opinions please but be gentle. I want to take my dh to DL for 5 days for his 40th birthday sans kiddos. I have priced it and using our hotel points it will cost roughly $1600-1750.
Here's my delima: We are in some debt. Last year we went to WDW and when we came back were set to pay off the balance when dh's 1998 Jetta totally died so instead of paying the full amount we paid most and put down a big down payment on a new car (now only pay $199 a month for 3 years). Then we had to pay MIL's taxes on 2 houses before they sent it to court and replace the engine in her car. My car also needed a major repair. So in the span of 6 weeks we went from doing well to serious IMO debt. Right now we have a little over $9000 in debt (no interest credit card) and the one car. We will have it paid off by next Christmas and our savings is not great but OK at one months income. We would use our income tax return to pay for the trip and the rest would go to debt reduction. We could also wait to take a trip together until sumer 2009 when it will be our 10 year anniversary.

So here it is WWYD?

TIA
Monica

Use your upcoming Tax Rebate Check to help stimulate the economy. It will be about $1200 and more if you have kids. OR shop around to help make it cheaper.

 

[Liltx]

My MIL! About the only good thing she's done is give birth to my dh who has the patience of Job with her.

Yes, she is a reoccuring expense with us. We did not know that her taxes were delinquent so it was a huge surprise. Now we are just making quarterly payments on both houses so that it won't happen again. One house she lives in and one she rents. If she doesn't have the house and the rental she would have to live with us which I do not want. So it's pay now or pay later. We also give her a monthly allowance as well.
My dh is a self employed architect who has a firm with his father. They are not at the mercy of the economy because they mainly do school work (elementary, middle and high schools) and the occasional library, post office etc. Very stable work. Since there are only 2 partners and one silent for coorperation purposes, they take home a huge bonus at the end of each year from the profits. Most of our retirement is wrapped up in the business since a 401K would be pointless in our situation and the high reserves keeps the insurance (bonding) low. So I tell him he better not mess up and be sued. I am happy that the rest of our investments are gravy. I am a modern woman though and am keeping my own personal nest egg going with my 403b (annuities) and teacher retirement. SO yes we have stable jobs. The highest interest I would ever pay would be a 3% loan taken out against my annuities.
But still we have decided to wait. We had wonderful vacations last year to WDW, Chicago, and New England. We will just go to the beach and then take our big vacation in Jan. 2009. Until then I will enjoy reading everyone's plans.

Thanks for keeping me grounded.
Monica