WDW with credit card debt?

[Gumbo4x4]

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.

There's always the option of postponing retirement

Look, everyone starts out with a plan, and it's usually derailed by reality at some point. If you're one of the fortunate ones who pays their house off before you even have kids & never have to borrow for anything ever again, wonderful. I know some such people & I'm envious. I also know folks in WAY worse shape than me who blow money like it's growing on trees. Meh, none of my business.

 

[Sugar Jones]

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.

She does have a book. Here is a link to her website. I love her show Til Debt Do Us Part.

http://www.gailvazoxlade.com/

 

[disykat]

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

I'm not going to answer you since I'm pretty sure we've had this discussion before - on numerous threads. I get that you don't see a difference, why can't you understand that some do? A bunch of people telling you yet again how we feel it is different won't change your opinion.

 

[disykat]

I love "til debt do us part." However, part of my fascination with watching it is how people don't seem to have any idea of what kind of debt they're in. Since I've always known exactly what I owe, it's like learning about a whole different culture that I only see on that show (and sometimes on the DIS!)

 

[ccgirl]

I'm not going to answer you since I'm pretty sure we've had this discussion before - on numerous threads. I get that you don't see a difference, why can't you understand that some do? A bunch of people telling you yet again how we feel it is different won't change your opinion.

If I remembered I wouldn't have asked. I am not one of those posters who remembers past posts. I'm lucky I can remember what someone posts on the same day never mind in past threads.

 

[Colleen27]

Personally I wouldn't take any expensive vacations with credit card or other non-mortgage debt, but that's a decision I make for our specific circumstances knowing that our income fluctuates pretty widely from month to month and year to year. There's no such thing as comfortable/manageable debt in my world and that's a trade off we willingly accept for the perks of self-employment. But we do choose to prioritize vacation over some other things; we won't have a million dollars to retire on and if the kids want to attend private universities they'll likely have to get scholarships or take on some student loans.

I don't really have opinions on what other people should be doing, though. Unless they're defaulting on their debt or relying on public assistance I don't see why it should matter to me if they accept more interest as a cost of the work-fun balance they want in their lives.

 

[ccgirl]

She does have a book. Here is a link to her website. I love her show Til Debt Do Us Part.

http://www.gailvazoxlade.com/

Thanks for the link. I'll check it out.

 

[ccgirl]

Personally I wouldn't take any expensive vacations with credit card or other non-mortgage debt, but that's a decision I make for our specific circumstances knowing that our income fluctuates pretty widely from month to month and year to year. There's no such thing as comfortable/manageable debt in my world and that's a trade off we willingly accept for the perks of self-employment. But we do choose to prioritize vacation over some other things; we won't have a million dollars to retire on and if the kids want to attend private universities they'll likely have to get scholarships or take on some student loans.

I don't really have opinions on what other people should be doing, though. Unless they're defaulting on their debt or relying on public assistance I don't see why it should matter to me if they accept more interest as a cost of the work-fun balance they want in their lives.

Bolded mine. I totally agree with you.

 

[mefordis]

Student loan debt i believe is fixed rate but banks can change the rate and terms of credit card debt.

Credit card debt is covered under bankruptcy but not student loans. Just two differences

 

[ccgirl]

Student loan debt i believe is fixed rate but banks can change the rate and terms of credit card debt.

I don't think they can anymore with the new laws, unless you miss 2 monthly payments in a row, then they can raise your rate to the default rate. I may be wrong. I know there are some cards with floating rates but I don't apply for those. Not all student loans are fixed. Mine is but my husband's was an adjustable rate.

 

[WeLuvDCL]

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.)

 

[disykat]

Unless they're defaulting on their debt or relying on public assistance I don't see why it should matter to me if they accept more interest as a cost of the work-fun balance they want in their lives.

In general I agree with you. I think most people did until fairly recently when it seems to be "normal" to think you should be able to accumulate debt and then have it somehow have it exused because you can't pay it.

 

[dntd]

I have debt, a little bit of morgage, used van-payments for 2 more years but are through our bank and intrest is next to nothing, some CC debt and soon nursing school debt. I am going to florida this year but we are cutting downto the basics, no Disney just seaworld,busch gardens,aquatica, got 3 days of eating free, staying in a room with a kitchen and sharing with my sister. We are also driving and only paying 1/2 the gas. I feel that our current situation we are doing ok, will get better in a few years. Now buying new houses,cars and huge investments can be a waste of money!

 

[crisi]

At this point in my life, it's a different answer than twenty years ago, or ten, or ten years from now. And I think the posters who talked about comfort levels have a good point.

For me, it's how much security do I have a how much do I need. In my world, I need more with kids at home, more as I get closer to retirement, and more if my or my husbands job isn't secure. I need less as retirement and college are better funded, less when the kids leave home, and less when I feel secure in my work. I feel more secure when my assets far outweigh my debts, and when that is the case, a little credit card debt because I'm tied up in the market may be a trade I take...and when my debts are greater than my assets, and growing, less secure.

I agree, as long as your aren't defaulting, or relying on public assistance, it's a personal question.

 

[Minnesota!]

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.

My parents were HUGE HUGE HUGE savers. Both planned retirement at 55. With plenty of money to spare. Dad died at 51. Never got to spend his $$$$ on anything fun. I refuse to live like that.

We live on basics.....no extras in our lives...except vacations. We save a modest amount, but enough that when we retire (aiming for 55...) we will have plenty to live on. We have a small amount of debt...and I am more than ok with that.

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.

I love this model! I am assuming grocery expenses would fall under Life?

 

[ChisJo]

Personally, for me, I wouldn't go on any sort of luxury trip if I had credit card debt. If I can't pay off something that is accumulating a boat load of interest and now am adding to it with a trip that is not necessary, than I would feel overwhelmed, and feel like an idiot. Stressing before to pay for something than coming home and needing to pay off more than before? No thank you.

I save and save and save to go on trips. I have a savings account specifically for travelling. When I feel that there is enough to go on a holiday, we go. If the trip is going to put us in debt, we wait a while longer. This may not work for everyone, but the trip is just so much more enjoyable for us knowing that we won't have to worry about money when we get back.

 

[willowsnn3]

Call me irresponsible.....I have credit card debt & go to WDW about 3 times a year. I usually teach a couple classes a month to support that habit tho, lol. I know, I could use that xtra money to pay down my cc debt, but then I would hate having to work on those Saturdays.....We have AP's tho and always go when we can get a room discount.

 

[ilovemk76]

My parents were HUGE HUGE HUGE savers. Both planned retirement at 55. With plenty of money to spare. Dad died at 51. Never got to spend his $$$$ on anything fun. I refuse to live like that.

We live on basics.....no extras in our lives...except vacations. We save a modest amount, but enough that when we retire (aiming for 55...) we will have plenty to live on. We have a small amount of debt...and I am more than ok with that.




I love this model! I am assuming grocery expenses would fall under Life?

Yes

 

[mrodgers]

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.

None of the financial people you see on tv are cut and dry how it should be. Gail's 15% for transportation is $111 shy of just my gas costs. That's not including the cost of vehicles (have to buy one now and then), insurance (short another $105), and maintenance/repair. How do I cut transportation costs down that far when it doesn't even cover gas?

25% in the life category doesn't come close to covering groceries and I still have medical insurance and my kids' prescriptions to pay for.

I just looked at one of her articles. It was about raises. She says, what if you save just half your raise? "With Connie's $400/month...." What? How out of touch with reality is that? My raises net me about $400 a year, and I don't think I know anyone who would tell different of theirs. The norm seems to be lower than that.

Same with Dave Ramsey. All I heard about when looking at Dave Ramsey was about how "inspirational" it was to hear from the folks who claim, "I paid off $60,000 worth of debt in 12 months!" Wow, how inspirational to those of us in the real world who don't even make that much in a year, let alone pay for all expenses plus pay that amount towards debt.

I hunted for years for informational help on debt reduction. All I could come up with is that you have to be making a hefty salary because there isn't any help when you are in the norm. I ended up taking out a [[gasp!] home equity loan to pay off CC debt so that I could change from paying debt payments and turning right around with putting living expenses (groceries, electric bill, car insurance, heating oil, etc.) right back on the credit card.

Yeah, sure I still have debt. But the difference is, the payment is a very small fraction of what the CC payments were and I have $600 sitting in the bank right now to pay for my local taxes. I have $300 sitting in the bank right now to pay for my quarterly car insurance. I had $600 sitting in the bank last month when they came and filled my oil tank for heat. Prior to the home equity loan, that $600 for heating oil and $300 for car insurance would have been paid out as a CC payment, then when the oil came and the insurance bill was due, there would have been nothing but a CC to pay for it.

 

[ssawka]

Your kids are only young once! I would not have denied DD the opportunity of experiencing WDW as a child. Fortunately we don't have CC debt and can still take nice vacations, but not everyone is as fortunate. They need to decide for themselves if it is worth the cost and risk to take a vacation.

On a side note, I don't understand parents' desire to fully pay for their children's education. To me that creates a bigger sense of entitlement than any vacation would. Now if my DD was able to go to college, I'd love to help her out, but she would get loans to pay for the rest.