Vacations with Debt

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I'm actually amazed at all the people, saying just go! If you have CC debt that means you are already spending too much money. If you had extra cash for a vacation why in the world wouldn't you put that on the CC. It's costing you more and more money each month that you are paying intrest on it, therefore wasting your hard earned moery. Then save up for the vacation. These poor money decisions are the reason why so many people have CC debt in the first place. Don't spend money you don't have. It Ok if you have a mortgage or car loan but always try to get the lowest intrest rate possible and pay things off as soon as possible. Maximize YOUR money, don't waste it by paying intrest on your money if at all possible.
 
1) I have gone on vacations with various types of debt.
2) I have made stupid money mistakes throughout my life that have made my financial planner want to choke the life outta me. ;)
3) Like others, I have lost loved ones suddenly who thought they would be around a lot longer.
4) I've yet to meet a senior citizen who regretted not paying off all their cc's, I have met tons of then who regret not doing things when they were younger.


All this is a round about way of saying, everyone has to figure out what their comfort level is and work within that comfort level.

Would I go on vacation with cc debt, depends? would I go on vacation without an emergency savings in the bank? No. for me credit card debt is way down on my list of things that worry me but that may be that I tend to pay them off within a few months. My tolerance is different. I'm not a person who aspires to a "no debt at all" lifestyle.
 
I've met many seniors who are unable to pay their bills, for meds and for needed care. They seriously wish they had chosen to save for their future and hate having to depend on their children or the the state.
 
:thumbsup2 yes to this
I've met many seniors who are unable to pay their bills, for meds and for needed care. They seriously wish they had chosen to save for their future and hate having to depend on their children or the the state.
 

Yes! Some of us, if we waited until we were debt free.. and/or didn't use credit cards, we would never get to go on vacation or do anything. I think that when my child is grown and gone, that will be a bigger regret for me than whether or not I had 5 or 10k in credit card debt.



In a perfect world, sure. But for most people... well, see above. I am not directing this at you SaraJayne, but a lot of people who are shocked at the idea of going on vacation with debt have never been in a debt situation. They don't really know what they would do if they actually had to make the choice they are telling you to make.

I'm not saying rack it up and fly off with no regard to money, but it's not the end of the world to carry a reasonable amount of debt. Unfortunately, it's life for a lot of people. And we have to live life, right? :goodvibes

I do want to say we have debt (a mortgage and car loan), but we don't have credit card debt. No, it isn't the end of the world. Only the OP knows what is best for her family. She asked for my opinion and I gave it. :)

I'm not shocked at people that go on vacation with debt. I've been around the Dis long enough to know people will practically sell the food out of their kids' mouth to take a vacation they "deserve" to Disney ~ whether they can afford it or not. :rotfl:
 
:thumbsup2 After losing many people in my life very suddenly...I no longer "wait for the perfect time". I do things when I want. Go...have fun.



:thumbsup2:thumbsup2

OP - go! We went once when we literally had 500 to our name. No savings, nothing. WE paid for the trip with our tax return. Sure...that $3000 could have paid off a few bills, but we chose the trip. And we survived....

You only go round once in this world...enjoy it. Those that die with the most money....still die.

In a sense, I agree with not waiting until "the perfect time". And yet, I personally could never handle living without being careful with my finances. I am a firm believer that money only stretches so far and then you have to make choices. Money does NOT grow on trees (although with CCs, it's like there is a neverending stream of it!).

I really do my best not to judge other's financial decisions. Like a PP said, personal finances...are personal.

But frankly, if you've made bad financial decisions, don't come crying to me when you run out of money. My brother can never seem to dig himself out of debt and it's not fun to watch. His income should more than cover his basic expenses. Why is he entitled to "live it up" when he doesn't save up for it? Then he looks at me and wonders how I can afford this and that. I've always been in a comfortable enough position that I don't have to worry about not having enough to pay for this or pay for that. A car repair? Annoying...but not a massive deal.

I see some of my co-workers not having enough cash to pay $20 for something until next pay. I would hate living like that (and yes, I know there are circumstances...which is why I do everything possible to be careful). Not long ago we had some worry about possible job loss. Sure I was worried...but when my coworkers were swapping "Plan B" stories, I said it wouldn't be the end of the world for me. I'd stay home until I found another job and we would tighten our belts for those few months.

I feel our culture these days is one of entitlement. I "deserve" everything. My kids are constantly green eyed about everything other people get that they don't have and it drives me batty and I keep hammering in their heads to count their own blessings (which are considerable!!)

This is NOT to say if you don't make much money you can't vacation. Even now, DH and I don't make the kind of money to allow ourselves super expensive vacations every year. This year we made a conscious choice not to do much renos or updates to the house and put our money towards vacationing. So that's what we do, we vacation and we've let a number of things go in the house. A lot of the people around us have been wondering how we manage to go on so many vacations and trips this year. Well, that's why. (Also, it helps that my income has increased a bit)

There is a balance. DH and I do believe in enjoying the "here and now". We just advocate doing it responsibly. When money was tighter, we did camping vacations and overnight trips. Now that our income is larger, we go to WDW and are planning a cruise.

There was a time before I was married when I was a complete spender and frittered away a lot of my money over the span of a few months. It was fun WHILE I was doing it :) The next year, I really regretted it though. I had barely enough left to buy my dh a wedding ring (the one thing my parents did NOT pay for!). At the end of the day, my money could have been put to much better use and the fun I got while spending...just wasn't enough to justify not having that money the following year. I could have gone on a much more conservative spending spree (an oxymoron I know!) and had just as much fun.

I know there are LOTS of different opinions on all ends of the spectrum. My SIL is one who feels that we can die tomorrow so spend whatever you want. For that matter, my dad is a spender too. I await the day I have to support him when he runs out of money. I can't stand to see money "wasted" and watching my dad spend drives me a little nuts some days :) But hey, his money and I don't say much at all....I just save a little more...just in case :)

At the end of the day, it's a PERSONAL decision. But, I am a big believer in making decisions after evaluating the pros AND cons. Do it with your eyes wide open instead of being shocked with the cons a few years down the road.
 
OP, I have learned a few things during my tenure on the DIS....

The DIS population seems to have lots of rich folks with hundreds of thousands of dollars in various types of savings

The DIS population seems to have a lot of wealthy people who never make bad financial choices or splurge

The DIS population seems to be made up primarily of people who never take a vacation if they have any debt

The DIS population seems to be primarily made up of perfect people who never make mistakes, break a rule, or do any wrong

The DIS population seems to consist of many people who feel entitled to everything, including being entitled... to being entitledIts like everyone who is wealthy, perfect and debt free flocked to the DIS and made their own little community. Therefore....

The DIS population does not represent me or my household.

If you can afford a vacation then YOU know it. Not someone on a message board who may or may not be from the advice giving background they claim. If people waited until they had no debt to take a vacation, travel services and tourist locations would be non-existent because there would be no one to bring in revenue.

Sharing your household finances here will only bring out the Desperate Housewife types who would scold you for going on vacation if you owed $10 on a bill that wasn't even due yet.

Take your vacation and enjoy it while others sit here and bicker back and forth about why you shouldn't.

Why on earth are you calling people who don't feel like they can vacation with debt "entitled?" I would say it's the opposite. I don't feel like I "deserve a vacation and should take it regardless." I feel like vacations should only be taken by people who can pay for them. That has meant waaaay less vacations for me than I would have wanted, but it's simply a reality for me.

Seriously? Who's entitled?

There have been a lot of thoughtful posts, most taking a middle of the road position - and THIS nastiness keeps getting applauded?
 
I'm actually amazed at all the people, saying just go! If you have CC debt that means you are already spending too much money. If you had extra cash for a vacation why in the world wouldn't you put that on the CC. It's costing you more and more money each month that you are paying intrest on it, therefore wasting your hard earned moery. Then save up for the vacation. These poor money decisions are the reason why so many people have CC debt in the first place. Don't spend money you don't have. It Ok if you have a mortgage or car loan but always try to get the lowest intrest rate possible and pay things off as soon as possible. Maximize YOUR money, don't waste it by paying intrest on your money if at all possible.

I guess I'm amazed at the people that say not to go that go while they have debt (it's just not credit cards). Why is it okay to have a car loan but not credit card debt? One could also say that by having the car payment was spending money you didn't have. That money should have been saved and cash should have been paid for the car. That "argument" just really does confuse me - why credit card debt is not okay but a car loan is? To me they are both debt. Things we didn't use to pay cash for???

I've met many seniors who are unable to pay their bills, for meds and for needed care. They seriously wish they had chosen to save for their future and hate having to depend on their children or the the state.

Me too. But, I have credit card debt and a healthy 401K. I could use the 401 K to pay off my credit card debt and have some left over but I don't want to. My DH and myself could also use our 401K's to pay off our home but we don't want to. We want that money there to take care of us when we're older so our children don't have to. Just because someone has credit card debt does not mean they do not have a 401K or college accounts for their children.
 
We have debt. We go on yearly vacations. Those vacations don't add to our debt. We typically use our tax return and money I save all year for vacation. Yes that money could help pay down some debt but my kids won't remember that we were debt free. They'll remember our vacations. This year we are headed to Charleston, SC. Last year it was Orlando. Nothing fancy, just fun. It's your money, spend it how you wish.
 
I'm not shocked at people that go on vacation with debt. I've been around the Dis long enough to know people will practically sell the food out of their kids' mouth to take a vacation they "deserve" to Disney ~ whether they can afford it or not. :rotfl:
And these are the same people who will come here and complain "DISNEY IS SO EXPENSIVE!!!!!111!!!1!" and whine about every increase in prices. :rotfl:

Well, duh, Disney is a premium product and will charge whatever the market will bear. Just because the population thinks it "deserves" Starbuck's, doesn't mean that Starbuck's will keep charging Postum prices...
 
I guess I'm amazed at the people that say not to go that go while they have debt (it's just not credit cards). Why is it okay to have a car loan but not credit card debt? One could also say that by having the car payment was spending money you didn't have. That money should have been saved and cash should have been paid for the car. That "argument" just really does confuse me - why credit card debt is not okay but a car loan is? To me they are both debt. Things we didn't use to pay cash for???

Personally, I don't like car loans either. But a lot of people believe in "quality" of debt - the idea of "good debt" and "bad debt"

Under this thought:

Bad debt is consumer debt - credit card debt. Its particularly "bad" when it is for temporary items that couldn't be resold for any amount - non-assets. In other words, debt that results in ownership of a Coach purse that could be resold is bad debt, but its not quite as bad as dinner out - which is gone before you get the bill.

Good debt is your mortgage. There is an asset component, its secured by the asset in question, and the debt meets a basic human need that most of us couldn't afford without the loan.

Car debt is secured, tied to an asset you could sell (often for a loss), and for many people, a reliable car is a necessity, and something out of reach without a loan.

Student loan debt is sometimes seen as good debt - its an "investment" in future earnings and college is often out of reach without debt.

I personally am not a fan of anything other that mortgage and leverage debt (leverage debt - you have ample assets, but you get better returns investing than then interest you pay in borrowing - the ample assets are important however - you can borrow yourself into big trouble doing this), but everyone has their own debt tolerance - including vacations on credit cards.
 
I would say that it's your decision. I do go to Disney with debt...however, as I am overpaying and reducing the debt, I am also saving money for a future trip to Disney...so that when it's time for the trip, everything is paid in full, including airfare and spending funds.

This is my philosophy too. We travel (to WDW and other places) fairly frequently and we have debt (mortgage and 2 vehicle loans...0% on one of them, no credit card or other consumer debt). We budget our trips, so they are paid in full at the time we go. We both have fairly secure jobs, our emergency fund, etc. I don't bat an eye when it comes to spending money on our vacations.

OP, my only advice is to do what is comfortable for you and your family.
 
OP
I used to be one of the ones who was waiting until everything was paid for until we took a vacation. Oh, we would go see family, but I mean a real vacation. Things never got fully paid off. Something was always coming up. Our financial situation got better, but there is always something. I finally got fed up and told DH we were going, I was tired of waiting. I planned a trip, made monthly payments and didn't put one dime of it on the CC. I felt so much better after that trip, I realized that as a family we needed to get away and do something each year. Doesn't have to be expensive, just away and together. Disney just happens to be our choice of destination. We have decent jobs, savings and bills, just like most families around. I save and do what I can and pay for over half the trip each year through extra stuff.

Only you can decide if it is right for you to go. But if you are comfortable with your financial position, than I vote for going.
 
Personally, I don't like car loans either. But a lot of people believe in "quality" of debt - the idea of "good debt" and "bad debt"

Under this thought:

Bad debt is consumer debt - credit card debt. Its particularly "bad" when it is for temporary items that couldn't be resold for any amount - non-assets. In other words, debt that results in ownership of a Coach purse that could be resold is bad debt, but its not quite as bad as dinner out - which is gone before you get the bill.

Good debt is your mortgage. There is an asset component, its secured by the asset in question, and the debt meets a basic human need that most of us couldn't afford without the loan.

Car debt is secured, tied to an asset you could sell (often for a loss), and for many people, a reliable car is a necessity, and something out of reach without a loan.

Student loan debt is sometimes seen as good debt - its an "investment" in future earnings and college is often out of reach without debt.

I personally am not a fan of anything other that mortgage and leverage debt (leverage debt - you have ample assets, but you get better returns investing than then interest you pay in borrowing - the ample assets are important however - you can borrow yourself into big trouble doing this), but everyone has their own debt tolerance - including vacations on credit cards.

Yes this, plus you can get a car loan for a much lower intrest rate then CC. Also just because I get a 5 year car loan doesn't mean I'm not going to try my hardest to pay it off in 2 years vs. the 5 years. I'll save so much intrest and I'll still have my car to drive to get me to work to make me more money.
 
Why on earth are you calling people who don't feel like they can vacation with debt "entitled?" I would say it's the opposite. I don't feel like I "deserve a vacation and should take it regardless." I feel like vacations should only be taken by people who can pay for them. That has meant waaaay less vacations for me than I would have wanted, but it's simply a reality for me.

Seriously? Who's entitled?

There have been a lot of thoughtful posts, most taking a middle of the road position - and THIS nastiness keeps getting applauded?

I didn't call the people who feel like they can vacation with no debt "entitled". I made the comment that many on the DIS feel entitled. My observations are not limited to the Budget Board. I visit other boards on the DIS as well. My observations and opinions were as a whole, thus why I used the term "DIS" instead of "Budget Board" (some of them don't even apply to the Budget Board).

Im sorry you understood it that way, but its not how I meant it. Sometimes in 'text' things can be easily mis-understood.
 
OP here. I was really curious about the opinions because I do see alot of the DIS community saying that they do not believing in having any debt and yet they take many trips. Maybe much of the community is wealthier or just very conscientious but this seems bizarre since we hear about job loss everyday and the nation is struggling with high consumer debt and bankruptcy and it seems odd to me that the population of DIS is so different from that of the rest of America.

DH and I work really hard and plan to take a vacation every year if possible even while paying back debt that was accumulated do to circumstances out of our control and helping family (my mom). Basically Disney is probably $1000 more (with pin code) then another vacation but means a lot more to the kids and DH and I. However, because it is "Disney" it just seems like so much more elaborate then a beach or sixflags type vacation.

I am grateful for the opinions and suggestions I have received here because it has helped me be more dedicated to saving, paying off debt and making decisions about what is most important.

Obviously, I agree finances are personal but we all know that family, friend and coworkers often have opinions about them even when they no very little details ;)

Thanks for the opinions and you all are welcome to continue arguing. :rotfl:
 
And these are the same people who will come here and complain "DISNEY IS SO EXPENSIVE!!!!!111!!!1!" and whine about every increase in prices. :rotfl:

Well, duh, Disney is a premium product and will charge whatever the market will bear. Just because the population thinks it "deserves" Starbuck's, doesn't mean that Starbuck's will keep charging Postum prices...

This.....from a person who has a siggy that says "Our first trip to WDW! Had fun, a bit disappointed in the lack of things to keep us busy. Next trip: eh, 5 years perhaps? Don't understand the psychosis of wasting time trying to meet actors in fursuits or princess costumes, but, wev.."

According to your siggy, Disney isn't too premium at all. Sounds like you didn't get your moneys worth. Maybe Disney is too expensive?
 
For me, it would depend on the type of debt that makes up the $5000 and how much I had in savings. If we're talking $5000 on a 0% interest credit card, I wouldn't worry. If it were at 29%, I wouldn't go on vacation before it was paid off. Also, if I had 3 months of expenses (not income) saved, I would go. If I had $500 in savings, I wouldn't. Life happens and you never known when an unexpected expense will come up.

I'm not a Dave Ramsey follower, and we have a lot of debt (2 mortgages and six-figure student loan debt, though no CC or car loans). We also have high incomes and a significant amount of savings. We are planning a trip to Disney in August and I have never thought about not going because I have debt. Now, if I had high interest CC debt or little savings, I probably wouldn't, but debt alone would not bother me.
 
Yes! Some of us, if we waited until we were debt free.. and/or didn't use credit cards, we would never get to go on vacation or do anything. I think that when my child is grown and gone, that will be a bigger regret for me than whether or not I had 5 or 10k in credit card debt.



In a perfect world, sure. But for most people... well, see above. I am not directing this at you SaraJayne, but a lot of people who are shocked at the idea of going on vacation with debt have never been in a debt situation. They don't really know what they would do if they actually had to make the choice they are telling you to make.

I'm not saying rack it up and fly off with no regard to money, but it's not the end of the world to carry a reasonable amount of debt. Unfortunately, it's life for a lot of people. And we have to live life, right? :goodvibes
It's unfortunate that people actually think that CC debt has to be part of life. IMO, CC debt is the absolute worst kind of debt you can have. The fees, outrageous interest rates and the changing terms that are hidden in fine print and legalese are what get so many people into trouble. I see CC debt as a millstone around one's neck and it is constantly pulling the debtor down.

A long time ago, I was told that the difference between a rich man and a poor man is "interest". The rich man collects it. The poor man pays it. Which do you (the collective "you", not the PP) want to be?
 
OP here...... Maybe much of the community is wealthier or just very conscientious but this seems bizarre since we hear about job loss everyday and the nation is struggling with high consumer debt and bankruptcy and it seems odd to me that the population of DIS is so different from that of the rest of America.

:

My sentiments exactly....

I would bet half of those who claim they have this and that are sitting at their computer in denial of whats really going on in their lives. Im not saying everyone, but some, yes. There are folks here who truly have made good decisions and have done well for their future and then you have those who like to "keep up with the Jones'", even on a discussion board.

I'm broke and I'm not afraid to admit it. I don't have a savings, am a single mom, and average less than $10 per hour with 2 boys. I do have a small farm with some livestock thats worth a little if an emergency comes up. I live off my land to save money and I feel very fortunate to know how to slaughter my own meat and grow my own fruit and vegetables. Just last week, a neighbor farmer had a cow to break its back. He was going to shoot it and bury it. Instead, me and my 17 year old son went and got it, loaded it up and brought it to the "meat room" as we call it (a small family slaughterhouse). We finished processing it 2 days ago and I now have over 300 lbs of fresh ground beef, rib eye's and T-Bones in my freezer. Im very fortunate to have the equipment and skills to do this and I have taught it to my kids just like my father taught me. I told my father, "you know...I know people who have meals with no meat because they can't afford it and here we are with a thousand dollars of free meat handed to us....and we're people who have meat readily available all the time". Its funny how the world works. Had another family been given the cow it would have been useless to them without the equipment to process it. We gave about 50 lbs of hamburger to my sons girlfriends family and frequently give away pork and deer as well. I may not have money in the bank but I am a VERY blessed person.

Some people choose a life that lets them put money in a bank. Others choose a life that teaches them to survive when times are hard. I don't think one is necessarily better than the other. You haven't seen the worst of the economy yet. Some cant fathom how I will survive without money in a bank. Sometimes I can't fathom what some people would do if there were no stores to buy food.

In the end, we are just different people and we live differently. I am no better than you (using "you" in general) because I can slaughter/grow my own food. You are no better than me because you have money in the bank.

Before all this is over....you may be using some of that money in your bank to buy food from me and I may then have to use that money to get services from a doctor for a sick kid, who then uses that money to purchase medicine for his patients. Money is nothing more than a piece of paper to be passed around. Money is not life.

I take my boys to Disney every couple of years and we save and pay for our trip with cash. I dont have any credit cards, but I do have some debt. Last time we went, my youngest was running around AK and he stopped to see a carving on a rock. He looked at me in bewilderment and said "MOM....the YETI!". He had no idea what EE was and continued running around finding clues to this "creature" whom he had read about for years. He eventually rode the ride, and then was even more mystified when we got to Dinosaur. You know that look a kid gives you when they say "WHOAAA" and they look at you out of the side of their eye? The one that lets you know they believe they really have found the place where dinosaur's exist? That look is something money can't buy....and its also a look I would never have seen had I of waited until he was older and we were out of debt.

I bought a pre-historic sharks tooth off eBay a few years ago. He is crazy about sharks. My dad had been digging a hole in the ground with his tractor back in the woods. When my son was in school I went back there and buried the tooth. He got home and I said "lets go back to the hole and see if we can find any fossils (he frequently digs for fossils). Needless to say, he dug up a 5 inch Megaladon (Shark) tooth. Can you imagine the look on his face? I never told him any different and he still lives with the magic that he found this tooth buried in his own land.

What I'm saying is....people who have a little debt or dont have savings shouldn't be made to feel like they can't enjoy certain things. Sure, we can't enjoy many of the nicer things some people have like fine homes and cars and jewelry.....but just maybe.....we don't want to. For some folks, there are things that are more important than money. It doesn't make them any less of a person and doesn't mean they don't work just as hard. I don't have the dollar I had in my purse the day my son found the Yeti, but I do have the memory that I will carry with me a lifetime and so does he.

I guess Im in the minority, but I just don't understand the obsession with money. Life, imo, is so much sweeter without it. Yeah, we all have to have it, but for me, I don't need thousands sitting around in the bank. When I get old, I'll sell my land and rental homes and live off that. I live simple. Its not like I'll need a lot. If I can't sell it...I'll keep working as long as I can. When I can't, I have 2 wonderful sons who will help take care of me just as I have for my mother and father. Its called family.....another thing I am very blessed to have.

Now, lets all go enjoy the one thing we DO have in common......,DISNEY!
 
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