Vacations with Debt

[RobDIS]

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 entitled

Its 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.

OP did ask what people would do given a situation. I don't see a problem with people giving an opinion when it has been solicited.

 

[disneyofcourse]

Personally, If I were in your shoes I'd be taking the cash you have saved up and using it to lower the debt. Take a inexpensive weekend vacation, treat your family to a couple of nice dinners, visit museums in a different state for the weekend. Just I wouldn't spend all that money on a Disney vacation with 5k in debt. Maybe if a card was at 0% for a while and you knew it would be paid off before that period ended. That I would be tempted to do, but, probably wouldn't since owing money drives me lo-co .

I'd pay as much off as you can and start chipping away at the payments. Then you could go on a nice vacation without worries or at least less worry.

I think only you know the correct answer of what to do and you should follow what you feel comfortable with. I'm not going to judge you and say oh that person makes bad financial decisions. People do things differently and different things work for different peoples situations.

 

[DisneyCrazyMomma]

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.

LOL I agree with you. I really wasn't directing my comments at you. I quoted your comments but then went on to say other things...

And you're right, no one "deserves" vacation, to Disney or anywhere else. We want it to different degrees, but it's not a right. Entitlement bugs me a lot.

 

[GinnyEmma]

Thousands in the bank or thousands in equity. Not much different. I think there is a balance to it all. Either way, you have a plan to take care of yourself in the future. I do agree that knowing how to survive is a good thing.

As far as the people who choose debt free and vacation, some of us are older and I figure that at least a few are like me and made dumb choices out of college and feel fervently because of the price we paid. Experience personal and professional has taught me to treasure people but to express it with common sense. Priorities are funny too. I take travel as a priority. I know others who love jewelry or electronics. My fun money all goes to travel, and books.

 

[Minnesota!]

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!

EXACTLY!!!

Just because someone has more money than me doesn't mean they are richer than me. Life is about living....not stockpiling for a rainy day that may never come.

 

[ValpoCory]

There are a lot of people living with credit card debt who have good credit scores (above 750). They never face any fees for late payments or anything. Having credit card debt does not prevent them from getting the best rates on car loans, home loans, etc. Their "punishment" is paying hundreds of dollars of interest every month.

Although they all want to be rid of it, if they are ok with that "punishment", and wish to still spend money, who am I to tell them otherwise.

Some guys I know marry into $50K of credit card. It takes a while to pay off, and they don't necessarily want to wait until their kids are 20 before experiencing vacations, so they live with the "punishment" of paying the interest while they work on improving spending habits. They don't go "cold turkey" as some on here demand.

 

[GinnyEmma]

Lol, no one can demand a stranger to do anything.

Not taking luxury vacations isn't exactly putting life on hold either.

 

[DisneyCrazyMomma]

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?

I get what you're saying, I really do. And it doesn't have to be a part of life. It's a choice, like many other things. I guess I worded my post poorly. I just meant that it's a choice many people have made and will continue to make. We have cc debt. I wish we didn't, but we do. Some of it is old and I wish we didn't have any of it. But we consolidated everything and the highest I pay for interest (on anything.. house, car, cc debt) is 4.9%. So it's not that bad. Yes, if I hadn't taken my vacation in 2010, I could have about $3k less debt. And if I wasn't going to take vacation this year, I could have it paid off about 6 mo sooner. But tomorrow is guaranteed to no one, and my son is only little once, This is the choice I'm making. It's not right for everyone, but it is right for me.

 

[DisneyCrazyMomma]

EXACTLY!!!

Just because someone has more money than me doesn't mean they are richer than me. Life is about living....not stockpiling for a rainy day that may never come.

Amen!!!

There are a lot of people living with credit card debt who have good credit scores (above 750). They never face any fees for late payments or anything. Having credit card debt does not prevent them from getting the best rates on car loans, home loans, etc. Their "punishment" is paying hundreds of dollars of interest every month.

Not always the case. I have 2 cc accounts and the highest one is 3.9% fixed.

 

[GinnyEmma]

To assume that someone who doesn't choose debt is somehow not "living" as well is a pretty big assumption.

 

[DisneyCrazyMomma]

To assume that someone who doesn't choose debt is somehow not "living" as well is a pretty big assumption.

If that was directed at me, I didn't say that.

 

[ValpoCory]

Amen!!!



Not always the case. I have 2 cc accounts and the highest one is 3.9% fixed.

Awesome. So your "punishment" is lower. But some pay more in interest, that's all I was saying.

If having credit card debt doesn't bother you or impede you in any way (best rates on car loans, home loans, etc.), then some will live decades with credit card debt and be perfectly happy. They know it's not ideal, but they live with it, slowly chipping away at it over many years, without hugely impacting their way of life.

 

[DisneyCrazyMomma]

Awesome. So your "punishment" is lower. But some pay more in interest, that's all I was saying.

LOL! I know. They sure do. I just was making the point (not to you specifically) that some people do have credit card debt but have it managed fairly well. I know I SHOULDN'T go on vacation until I have it taken care of, but I also think I'm a big girl and know what I'm doing.

I'd also be the first one to advise someone against getting a credit card. They are evil. But it is what it is.

 

[ValpoCory]

LOL! I know. They sure do. I just was making the point (not to you specifically) that some people do have credit card debt but have it managed fairly well. I know I SHOULDN'T go on vacation until I have it taken care of, but I also think I'm a big girl and know what I'm doing.

I'd also be the first one to advise someone against getting a credit card. They are evil. But it is what it is.

I couldn't agree more. Well said.

 

[furb & dez]

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?

Not sure why you're jumping into an ad hominem attack (because let's face it, your post is an attempt to undermine credibility), but in response (other than a trip report-type post I've already made): I did have a wonderful time, and as clearly indicated, I'll probably return to WDW in 5 years or so.

That said, I'm not a Disney Fanboy; I would never trust or respect anyone who would willfully ignore bad show just because they feel so emotionally invested in a brand that they foam at the mouth and feel personally affronted when that brand is rightly criticized. That's just juvenile.

Just because I had a wonderful time, doesn't mean that Disney has every single aspect of their parks right (the correlating reverse statement could also be: "just because things weren't completely perfect, doesn't mean I didn't have a good time"). It would be ludicrous to look at WDW and say that nothing needs to be done to improve it. If that were the case, they wouldn't be frantically tearing apart FantasyLand in the Magic Kingdom. Look at Kevin Yee's posts on Miceage.com about "Declining By Degrees" if you want (many) further examples.

Disney doesn't get a free pass just because they are "Disney". Premium brands STAY premium by keeping their standards and cachet high and their customers happy. Brands that rest on their laurels fade and die. Brands that price themselves as premium while their product falls to a lower and lower standard each year fall off the list eventually as consumers realize the bang for the buck is disappearing.

Sorry for the derail, OP. It's interesting that the last few pages of this thread seem to be revolving around people feeling defensive about their spending habits. It's words on the Internet, people. We're not coming to your house to force you to change. Change is by choice! If you're okay with your choices, that's what matters.

 

[GinnyEmma]

If that was directed at me, I didn't say that.

Minnesota did. On this silly phone I can't quote long quotes and it doesn't snip well either. Sorry for the confusion.

 

[DisneyCrazyMomma]

Minnesota did. On this silly phone I can't quote long quotes and it doesn't snip well either. Sorry for the confusion.

Okay. Sorry. Thought it was me because I said that credit cards were a choice. Sorry.

 

[Disneyliscious]

Not sure why you're jumping into an ad hominem attack (because let's face it, your post is an attempt to undermine credibility), but in response (other than a trip report-type post I've already made): I did have a wonderful time, and as clearly indicated, I'll probably return to WDW in 5 years or so.

That said, I'm not a Disney Fanboy; I would never trust or respect anyone who would willfully ignore bad show just because they feel so emotionally invested in a brand that they foam at the mouth and feel personally affronted when that brand is rightly criticized. That's just juvenile.

Just because I had a wonderful time, doesn't mean that Disney has every single aspect of their parks right (the correlating reverse statement could also be: "just because things weren't completely perfect, doesn't mean I didn't have a good time"). It would be ludicrous to look at WDW and say that nothing needs to be done to improve it. If that were the case, they wouldn't be frantically tearing apart FantasyLand in the Magic Kingdom. Look at Kevin Yee's posts on Miceage.com about "Declining By Degrees" if you want (many) further examples.

Disney doesn't get a free pass just because they are "Disney". Premium brands STAY premium by keeping their standards and cachet high and their customers happy. Brands that rest on their laurels fade and die. Brands that price themselves as premium while their product falls to a lower and lower standard each year fall off the list eventually as consumers realize the bang for the buck is disappearing.

Sorry for the derail, OP. It's interesting that the last few pages of this thread seem to be revolving around people feeling defensive about their spending habits. It's words on the Internet, people. We're not coming to your house to force you to change. Change is by choice! If you're okay with your choices, that's what matters.

My comment was based more towards the comment you had quoted, but quotes of quotes don't show up when posting. I "get" what you are saying and I agree with you. The comment I made to you was not justified and uncalled for. I whole heartedly apologize to you for my mis-interpretation of the conversation and the comment I followed up with afterwards regarding your signature. I was wrong.

 

[bettymae1121]

Yeah, I don't get that it's "okay" to have a mortgage, student loan(s) and one or two car payments, but not okay to have CC debt. DH and I have a modest mortgage and CC debt, and NO OTHER debt. No student loans and our cars are owned out-right. The CC debt is locked in at about 5% interest for the life of the debt.

To my mind, we are better off than someone with a hefty mortgage, a student loan (or two) and a car payment (or two), but many would consider us worse off, just because our debt is CC debt. The CC debt, btw, is a result of several large purchases that either could not be deferred until saved for, or we chose not to. It was not a result of living beyond on means on a monthly basis (eating out, movies, vacations, luxery items, etc.) but rather a mix of unexpected expenses and planned-for-one-time-only wants that we chose not to wait for (and I do it again, too). Could we have done it better? Eh, probably but the road we took doesn't lead to a dead end, either.

Anyway we just got back from a WDW trip that, in total, cost about $1600 (we used our tax return). Sure we could have used that to pay down the debt, but it only would have shaved off about 2 months off our CC repayment plan. And since the vacation resulted in a much wanted pregnancy (talk about your souvineers! ) it was money well spent!

CC debt can be a trap, it can be very expensive. But it can also be manageable and a useful tool when your temporary needs (and sometimes want, let's be honest) exceed your income. I don't recomend having CC debt as a way of life, just like I don't recommend having car payments as a way of life. But CC debt over a relatively short span of your life (5 to 10 years) doesn't have to be the end of the world either.

 

[GinnyEmma]

Congrats on your souvenir. I've enjoyed mine.

You have the equity in those items, car and house, that others are working toward. So, you are right. In your situation car or cc makes no difference that I can see.