WDW with credit card debt?

[mefordis]

Just curious, what do you believe your financial situation should be before planning a vacation to WDW?

Free of credit card debt with 6 months of expenses saved in the bank?
The above and additionally contributing at least 15% to retirement accounts and college savings accounts?

Just curious what you think the financially responsible thing to do is where vacations are concerned.


My belief for myself is that I would hold no credit card debt or personal loans before spending on a vacation. Also be contributing to my 401k and college savings.

I have been listening to Dave Ramsey's radio show, in case you are wondering what inspired me to start this thread!

 

[Michael623]

Who knows if any of us will live to retirement? I am a big saver but I also want to have fun now. You need to find a happy medium. I will not deprive myself.

 

[Janepod]

No, I would not take a vacation, or spend money on anything other than essentials.

Yes, I would deprive myself. I think it's irresponsible to spend on luxuries without paying off credit card debt first. Mortgages and car loans are different.

 

[mefordis]

Who knows if any of us will live to retirement? I am a big saver but I also want to have fun now. You need to find a happy medium. I will not deprive myself.

But if you do live until retirement and cannot support yourself you will have your kids worrying about you and having to take money from them. Not worth the risk IMO.

 

[cglaura]

I would go even if I had some credit card debt. I don't think it is irresponsible if you are paying everything on time (Financially sound? No. But if you want to carry the debt, then that is your decision.)

I would not go without 6-12 months living expenses, regular retirement savings and money in a replacement car fund & home repair fund though.

College savings are important too, however I am a firm believer that there is no reason why a child can't work to pay for their own schooling if need be. I did it. Tons of other people do too. Might take longer, but it is doable.

Now I would try to find the least expensive vacation I could. Memories don't have to be thousands of dollars at disney. They can be a weekend close to home if you want.

 

[eliza61]

But if you do live until retirement and cannot support yourself you will have your kids worrying about you and having to take money from them. Not worth the risk IMO.

Remember mefordis, that is you.

I too believe it's an individual choice. I do believe you must also accept the responsibility for those choices. I'm not a big dave ramsey fan. I have had debt and I darn sure took vacations while having debt. So far, I'm can support myself and my kids are not worrying about me.

retirement and credit card debt are two different things though.

Anyhoo to answer your question yes I have vacationed while having debt on my credit card. I tend to have various things on my credit cards though. One year I needed a new roof so I put it on my credit card. Yep, I took a vacation. I didn't have any problem paying the debt off so I saw no need to cancel.


Do you honestly think you are going to get a good variety of answers on this from this board.

 

[Karenj2]

What would I do?
- No CC debt, and have some $$ in an emergency fund plus be putting some $$ towards retirement (401k). Not completely free of all debt, and not necessarily the amounts you suggested in the EF or retirement/college accounts. I personally believe that it's not worth it to get 13-25% in interest charges just to go on vacation.

What do I think other people should do?
- I don't really care - it's up to them! (Unless they are going to personally whine to me about needing $$$ for groceries later that month.)

Edited to add - we did take one financially irresponsible trip in 2006... We didn't have CC debt, but neither of us had jobs at the moment. DH was on disability for depression (the company kept him on the books until January, but he was essentially unemployed), and I had been laid off the year before, and had been "self employed" for a bit, and had just interviewed for a job which I got the next month.) We didn't go into debt to go, but we used a chunk of the savings we had left. It was in celebration because DH had finally turned the corner on his depression and was feeling better.

 

[erincon23]

I think if you feel stable regarding your debt -- you can afford your payments, your job situation feels stable -- then go! My relationships with my family, the memories my kids have, shouldn't be solely based on whether or not I've paid off my debt. We've been in a very poor financial situation for the past several years, and we haven't gone anywhere, but we're starting to feel more like we can manage what we've got, so we're planning a trip for a year from now. That will give us plenty of time to pay down (but not completely remove) our debt, save up for the trip so it doesn't create any new debt, and figure out how to do this so the trip is wonderful without being financially stressful. My kids are in their late teens, and my older DS will be gone (if he isn't by then, he will be shortly after)and living on his own. I'm not waiting until everything is funded, everything is paid off -- and I'd appreciate it if I don't get jumped on for this decision.

 

[babyrich]

I can understand created the credit card debt by taking a vacation. I dont agree with it or more, my DH wouldnt agree with it; but I understand.

If there is already credit card debt, I dont think a "big" vacation should be taken. Any $ saved toward a vacation should be put toward the debt. The more paid down, the less interest. Enjoy the vacation after the debts are paid.

 

[Sugar Jones]

Everybody's comfort level is different. I would and will go on vacation with credit card debt, however I won't put a vacation on credit. If we don't have the cash then we don't go.


We are using the Gail Vaz-Oxlade system. We use envelopes, cash only for everything, with a % of our income allotted for debt repayment.


We started our Disney Fund right when we got home from our trip in 2010. It will have taken us 3 years, but i will have enough saved by next September for another trip.

 

[disykat]

I am not comfortable taking vacations with credit card debt, though I would do it with other debt like mortage, car payments, or student loans as long as I was current.

I don't feel travel is something everyone "deserves." I do believe time off and recreation with their family is a need, but there are less expensive ways to do that than travel. I have never been in very much debt, but I have had quite a few times in my life where travel wasn't an option financially. However, we've always taken time for family.

 

[ccgirl]

Everybody's comfort level is different. I would and will go on vacation with credit card debt, however I won't put a vacation on credit. If we don't have the cash then we don't go.
We are using the Gail Vaz-Oxlade system. We use envelopes, cash only for everything, with a % of our income allotted for debt repayment.


We started our Disney Fund right when we got home from our trip in 2010. It will have taken us 3 years, but i will have enough saved by next September for another trip.

This is exactly how I feel. We pay our vacations outright but still have credit card debt. I still contribute to retirement and the children's college fund. I pay more than the minimum's every month. My car only has 1 payment left. I always wonder at some of the posters that say they absolutely cannot understand how anyone can go on vacation with credit card debt but they have a car payment. I get secured vs. unsecured debt but a lot of times the amount owed on the car is more than the car is worth and nowadays, the same can be said for a mortgage.

I guess to me, the only "responsibility" I have is to pay my debts. If I was not able to pay my debts then I would not be going. Don't really care what anyone else does as long as it doesn't affect me.

 

[ccgirl]

I am not comfortable taking vacations with credit card debt, though I would do it with other debt like mortage, car payments, or student loans as long as I was current.

I don't feel travel is something everyone "deserves." I do believe time off and recreation with their family is a need, but there are less expensive ways to do that than travel. I have never been in very much debt, but I have had quite a few times in my life where travel wasn't an option financially. However, we've always taken time for family.

Just curious...what is the difference between student loans and credit card loans?

 

[mistysue]

There are so many more factors than if you have debt or savings. Your comfort level within your budget can vary so wildly. We don't owe on credit cards, but when our finances seem stable we go, when they don't we don't go.
For example there are people who want to have 6 months of expenses in the bank. We don't have 6 months of current expenses in the bank, but if one of us didn't have a job our expenses would change dramatically (start with the daycare!) and we could easily get by for 6 months with what we have.

If there is a plan, I don't see any reason why you can't spend money while there is debt. If there is no forseeable end to the debt and finances are tight it's probably a bad plan to spend money. Our disney trips really don't cost much as a fraction of yearly income.

 

[kim929]

this should be fun....


My Aunt told me my Uncle kept telling her they needed to save for their retirement and then they can travel and do everything they want. They saved all their lives not doing everything they wanted to do because they were waiting for retirement.
Well they retired and are to sick to enjoy it.

So I do believe you should be saving you also have to enjoy your life.

 

[Sugar Jones]

This is exactly how I feel. We pay our vacations outright but still have credit card debt. I still contribute to retirement and the children's college fund. I pay more than the minimum's every month. My car only has 1 payment left. I always wonder at some of the posters that say they absolutely cannot understand how anyone can go on vacation with credit card debt but they have a car payment. I get secured vs. unsecured debt but a lot of times the amount owed on the car is more than the car is worth and nowadays, the same can be said for a mortgage.

I guess to me, the only "responsibility" I have is to pay my debts. If I was not able to pay my debts then I would not be going. Don't really care what anyone else does as long as it doesn't affect me.

Yes this is us exactly! I pay more than the monthly payment on the card. Our vehicles are paid for the only other debt we have is our mortgage. We still contribute to our savings, our Disney Fund and the kids college funds as well.

My BIL could never even carry debt let alone go on a trip with debt. He starts to panic when his bank account goes below $10,000.00

 

[ilovemk76]

Just curious, what do you believe your financial situation should be before planning a vacation to WDW?

Free of credit card debt with 6 months of expenses saved in the bank?
The above and additionally contributing at least 15% to retirement accounts and college savings accounts?

Just curious what you think the financially responsible thing to do is where vacations are concerned.


My belief for myself is that I would hold no credit card debt or personal loans before spending on a vacation. Also be contributing to my 401k and college savings.

I have been listening to Dave Ramsey's radio show, in case you are wondering what inspired me to start this thread!

I don't know why a person who is in the shape in bold would listen to DR. He give horrible advice about finances. His best ability is as a motivator. That is great for a person who needs to get out of debt.

I much prefer Gail Vaz-Oxlades way of doing things.

35% - Housing (mortgage, taxes, insurance, PMI)
15% - Transportation (gas, auto repairs, car payments)
25% - Life (health insurance, vacation, life insurance, gym membership)
10% - Savings (emergency fund, retirement, college fund)
15% - Debt repayment.

Once you are debt free, other than car and mortgage, then you redistribute the 15% into the other categories. She usually says add half to savings and spend the rest as you wish.

To answer the question, if you can make your debt repayments and it will not take you longer than three years (a number Gail always tries for on her show) and you can afford it from the Life and still pay the other things that life has to cover.

 

[ccgirl]

I don't know why a person who is in the shape in bold would listen to DR. He give horrible advice about finances. His best ability is as a motivator. That is great for a person who needs to get out of debt.

I much prefer Gail Vaz-Oxlades way of doing things.

35% - Housing (mortgage, taxes, insurance, PMI)
15% - Transportation (gas, auto repairs, car payments)
25% - Life (health insurance, vacation, life insurance, gym membership)
10% - Savings (emergency fund, retirement, college fund)
15% - Debt repayment.

Once you are debt free, other than car and mortgage, then you redistribute the 15% into the other categories. She usually says add half to savings and spend the rest as you wish.

To answer the question, if you can make your debt repayments and it will not take you longer than three years (a number Gail always tries for on her show) and you can afford it from the Life and still pay the other things that life has to cover.

Hmmmmm....she sounds interesting and something I can live with. I wasn't a big fan of Dave Ramsey (I know some people love him). Does she have a book? If so, I will have to see if the library has it.

 

[mefordis]

I listen to DR when he is on the radio for entertainment purposes. I haven't read his books or anything. I do know that some people on this board follow him.

I don't know why a person who is in the shape in bold would listen to DR. He give horrible advice about finances. His best ability is as a motivator. That is great for a person who needs to get out of debt.

I much prefer Gail Vaz-Oxlades way of doing things.

35% - Housing (mortgage, taxes, insurance, PMI)
15% - Transportation (gas, auto repairs, car payments)
25% - Life (health insurance, vacation, life insurance, gym membership)
10% - Savings (emergency fund, retirement, college fund)
15% - Debt repayment.

Once you are debt free, other than car and mortgage, then you redistribute the 15% into the other categories. She usually says add half to savings and spend the rest as you wish.

To answer the question, if you can make your debt repayments and it will not take you longer than three years (a number Gail always tries for on her show) and you can afford it from the Life and still pay the other things that life has to cover.

 

[ilovemk76]

Hmmmmm....she sounds interesting and something I can live with. I wasn't a big fan of Dave Ramsey (I know some people love him). Does she have a book? If so, I will have to see if the library has it.

I don't know if she has a book but I love her TV series, "Til Debt Do Us Part". She has a new series called, "Princess". She also has a website.

Gail is based in Toronto.