Vacations with Debt

[Planogirl]

And your point is exactly why our country is in the position that it is in today. Last time we were at Disney was in 2009 with my entire family. Of course, it was crowded as always....and someone in my family made the comment, "it sure doesn't look like that recession has hit here". And someone else in my family said..."you'd be assuming that everyone you see can actually afford to be here....and many of them can't".

The world seems to still spin on its axis in the 1960s before every family had thousands of dollars in credit card debt and had to save up for things before they actually purchased things. Now....everyone is in "life is too short mode". And as we get through the next 20 years we're going to see the consequences of living life in that mode.

It's not going to be pretty.

Everyone who agrees with your post is just living like most Americans....living paycheck to paycheck, living with debt while trying to save as much as they can (which is likely not enough). Every single piece of data out there backs up this statement.

To the OP, If the consumer debt is so small and the income is good with savings and great retirement plans....why not just pay off the debt, and then save for a year and take a vacation while being completely debt free? Carrying any credit card balance implies that there may be some overspending going on.

Maybe you have the 5K in CC debt at zero percent and are just playing the "we're using the CC company's money" game.... but it's so much cleaner and simpler to just pay it off monthly and be done with it. It's just one less thing to deal with.

And as we're all learning as we go along in this country.....there are no rock-solid pensions and absolute recession-proof jobs these days.

Assume much? Some people save while they have debt. Some people see nothing wrong with carrying some debt. I wouldn't call that living paycheck to paycheck.

The problem is when people charge everything and then can't pay it back. While it's not necessarily the best way to go, carrying some debt (for home repairs for example) and then paying cash for a vacation isn't exactly what's bringing on the ruin that you envision.

I also know of people who think that carrying a car loan or even a house note is awful. Everyone has to find what works for them.

 

[GinnyEmma]

Assume much? Some people save while they have debt. Some people see nothing wrong with carrying some debt. I wouldn't call that living paycheck to paycheck.

The problem is when people charge everything and then can't pay it back. While it's not necessarily the best way to go, carrying some debt (for home repairs for example) and then paying cash for a vacation isn't exactly what's bringing on the ruin that you envision.

I also know of people who think that carrying a car loan or even a house note is awful. Everyone has to find what works for them.

I agree. It was an extreme broadbrush statement. The world is far more grey than black and white. And extremes make me a bit crazy.

 

[JaymeC]

I wouldn't take a vacation if I had credit card debt.... And it's not about secured vs unsecured it's straight up about interest rates. My mortgage is at 4.5%. I also have a personal loan out for 2.49% from our credit union. I am not paying either of these off too quickly, despite generally avoiding debt like the plague. Why? Well, the personal loan I also get 2.6% in interest in the checking account from the same credit union. So at heart, they're paying (very little!) to have that money outstanding. Our mortgage is brand new. First home! And I am not in a rush to pay it off because 10 years from now I truly believe that that interest rate is going to seem tiny. The interest rates like the economy are cyclic, and I don't care to rush to pay it off early if I can be earning more money elsewhere.

But credit card debt is a whole different issue. At minimum unless you're on a promotional rate you're probably paying 10%. That's a lot of interest to be working against you, and that debt is expensive. When you start considering some people are paying 25% on their credit cards... I can't justify taking a vacation if my financial position were that shaky honestly.

There's a reason that saving is so easy once you start to get ahead. It's because you don't have those interest rates working against you, and all the debt payments. I am not rich, nor earning a lot. In fact, I'd wager our family currently is one of the lowest earners here because dh is going back to school. For the next few years we've accepted that instead of saving for retirement and the like we're investing money in his education. But we still pay ourselves first out of every paycheck. Where I see others making debt payments, we're paying all those loans to ourselves so that on our big expenditures we don't need to go into debt. For those who don't do this, I can't tell you how relieving it is and how much easier it makes your life because not paying those interest charges is a huge money saver. And it IS doable. Though truthfully, you may have to skip a vacation or two. Or stay in a cheaper hotel. Or for a shorter trip. But if the vacations are the only times you are making memories with your children and your family, you're doing this life thing wrong.

I love travel. I love Disney. But it's a lot easier to stomach without debt than with.

 

[GinnyEmma]

Jaymec, good for you. I lived in a teeney tiny house without running water while we were putting Dh through school. Best thing we did. Financially his BS is worth more to us than my degree!

 

[luvsJack]

Jaymec, good for you. I lived in a teeney tiny house without running water while we were putting Dh through school. Best thing we did. Financially his BS is worth more to us than my degree!

without running water? are you serious? How on earth did you bathe and wash clothes or dishes? or have an indoor toilet?

Sorry but if I had to put a water bill on a credit card every month or having running water, you can bet your bottom dollar that cc is getting charged. I went without water for sometime after Katrina, short of another hurricane, that won't be happening again.

 

[GinnyEmma]

It was an old family farmhouse. We lived like our grandparents had. No biggie. Laundry we did in town. I was still completing the requirements for my license, and we were dirt poor. It was two years and there are only happy memories.

I don't in any way think that everyone or anyone else "should" do the same. Just was saying that living without in exchange for an education worked for us. Sorry if it came out any stronger than that.

Eta: we had electricity and free natural gas. It wasn't as primitive as I may have made it sound!!

 

[gracie1]

Is it just me or does it seem that this thread has taken a turn for the worst OP just asked for advice, there is no need to start attacking each other about finances. You each know what your finances are and what you can afford within your households. There is really no need for the fighting

 

[nunzia]

Is it just me or does it seem that this thread has taken a turn for the worst OP just asked for advice, there is no need to start attacking each other about finances. You each know what your finances are and what you can afford within your households. There is really no need for the fighting

...ahh..but they always do....

 

[TinkTock]

Oh my, if my mom had waited to go on vacation until she had no credit card debt we wouldn't have ever gone anywhere. She spent from June until Dec paying off vacations and from Jan. until June paying off Christmas. We always had a vacation. I can promise you she never regreted it. We use to do the same until we got older and were more financially secure and yes we have money in all those various places and a house almost paid for. But, we have made huge financial blunders! I think it is best practice to pay off your cc each month, but it is a personal decision. Have fun!

This is the kind of thinking that I guess makes people feel like they'll always have credit card debt. If your mom had just skipped vacation for one year, she could spend June through Dec. saving for Christmas, and then there wouldn't be Christmas debt. Then she could save from Jan. until June for vacation, and that wouldn't have to be put on the credit card either. Assuming she didn't have lots of debt from other things, which is how your post makes it sound, she would only have had to skip vacation once to break the cycle.

 

[luvsJack]

It was an old family farmhouse. We lived like our grandparents had. No biggie. Laundry we did in town. I was still completing the requirements for my license, and we were dirt poor. It was two years and there are only happy memories.

I don't in any way think that everyone or anyone else "should" do the same. Just was saying that living without in exchange for an education worked for us. Sorry if it came out any stronger than that.

Eta: we had electricity and free natural gas. It wasn't as primitive as I may have made it sound!!

Oh, no you didn't sound like you were saying someone else should or sound harsh at all! I was just a bit surprised, that's all and wasn't sure I was reading it correctly.

My hot water heater is on the fritz right now and waiting for dh to get home to fix it. That is bad enough,but NO water! wow. Like I said, I did it for a while (of course it was without electricity too so that didn't help matters) after Katrina; can't imagine it being longer than that.

Sounds like it worked out well for ya'll though!