Disney Debt?

[Jason_V]

I do a number of things to minimize the debt I incur every month. For one, my credit card is paid, in full, every month. I don't carry a balance. We just got back from a few days in the Midwest and that bill was about $1,000 (car, hotel, food). That will be paid on Wednesday when I get paid. I want to get rid of all my debt (house included) because, once I free up that money every month, I can start banking over $1,000 a month. That adds up pretty fast, allowing me to buy a car with cash or do a house remodel with cash.

I understand YOLO, but I also have to think about the future. It is likely I will have my sister living with us in the next 10 or 15 years. I need to be able to take care of her, have a paid off house, remodel the house and have a life at the same time. There is a concept of moderation or delayed gratification my parents instilled in me from a young age. I budget every paycheck religiously and pay off my CC in full every single month. It's not easy, don't get me wrong. But when I have my whole paycheck to invest or do things with, I feel better about my life. When it goes to the bank to pay a debt...I hate it.

 

[Kingdome8]

Dh & I were just talking about this yesterday. He read in the news that a whopping 74% of people go in debt to vacation!! I just can't believe it!

Paying your cc off each month is not going in debt. If we couldn't afford to pre pay or pay as we go on vacation we would either not go, or scale down to what we could afford.

We have definitely been there, and enjoyed what we could afford at that time - was no less a vacation to us. Going in debt, to us, is reserved for emergency things like health, necessary car/home repairs, etc. - not vacations.

Also read that 50% of families making over 50k won't take a vacation this year. Crazy

I feel lucky to have a good job. I am on my last day at Disney right now. And all my room charges just go to my debit card. Not a big fan of credit cards. I do use one for grocery and gas since I get big rewards only. Even the tram driver made a joke at drop off. He said something like. Hope to see again soon or when you can afford another loan to come back. Was funny and very true. Lol

 

[North of Mouse]

Also read that 50% of families making over 50k won't take a vacation this year. Crazy

I feel lucky to have a good job. I am on my last day at Disney right now. And all my room charges just go to my debit card. Not a big fan of credit cards. I do use one for grocery and gas since I get big rewards only. Even the tram driver made a joke at drop off. He said something like. Hope to see again soon or when you can afford another loan to come back. Was funny and very true. Lol

We took vacations when we made less than 50K!! We just did what we could afford and enjoyed it immensely!!

We love the Smoky Mtns. and that's our go to vacation spot. Love to hike, bike.

Yep, no one should go in debt to vacation - just need to do it within your means!

 

[North of Mouse]

Many were commenting they needed some unpaid credit as paying off every month somehow increase their credit score.. Is this true?

I also think that many who put a vacation on a Card and do not pay for it, have their good reasons.. Maybe this is the one and life time opportunity. Between Jobs and NOW have the time off. Or realize by time they save the cash this will

Not true about needing to carry a balance!! We've never carried a balance and have constant cc offers. Our credit score is excellent because we always pay any bill on time.

As for reasons to charge a vacation, we'll have to disagree!! I don't think there is 'ever' a good reason - just do what you can afford, and no more!! To each their own!

 

[Jason_V]

Not true about needing to carry a balance!! We've never carried a balance and have constant cc offers. Our credit score is excellent because we always pay any bill on time.

As for reasons to charge a vacation, we'll have to disagree!! I don't think there is 'ever' a good reason - just do what you can afford, and no more!! To each their own!

There are some pretty awesome vacations you can take which don't cost an arm and a leg. Overnight road trip, camping, explore areas around you with free attractions, etc.

I have that problem with my partner. He literally wants to travel somewhere on a plane every single month. I'm not on board with that because of the financial considerations. Do I deny myself the things I want? Nope, but to some people it feels that way.

 

[Anthony1971]

Sidetracking, can I ask if you think you got the same price on your car (as if you financed) because you paid in cash? Did you tell them upfront you wouldn't be financing? I always thought a dealer made money on financing and if they knew you wouldn't be going that route then you'd have less negotiation power. thanks!

The answer to this is actually a little more complicated than yes or no... and sorry this off the original topic...
NEW CARS-- a dealer buys the cars from lets say Honda and pays interest to Honda as they can not pay to have that many cars in stock so the faster they sell a car the less interest they pay and the more profit they make. So they want the cars off the lot...
Does a car dealer make money of a loan again yes and No-if it is through Honda (or whatever car brand) the answer is NO as they always have the lowest rates and special rates also include in this if the Brand offers 0% or very low rate they will also always offer X amount if you pay cash.... this is a manufacturer discount not dealer. If they finance you through a bank they get a kick back and your rate will be higher than through a car brand finance company also with this if you pay the loan off in lets say 2 months (in their contract do not know exact time) the dealer also gets nothing....
Used cars similar to above but rare Car brand itself will offer financing BUT here there is more of an incentive for a dealer to get these cars off the lot as they are paying interest to have them there.
lastly The dealer does not get lot for a higher interest Bank loan it is hundreds... so in the end will not make or break a deal if you pay ether way.

I have always gotten a better deal paying cash... simple understand you have the upper hand although some dealers will tell you finance so we make a few dollars--that is sales tactic putting in your mind he is making less on the car...they are not making less... If you have cash do your research walk in tell them you are paying cash and here is what I will pay don't want the deal... ok I will drive 5 miles further to the next dealer who will take it... get up and see how fast the manger comes running...Cash is king and you can trust me they have 19 other cars in stock with the same color and options as the one you are buying to try to make a higher profit on....

edited to add you will also save fees paying cash as the dealer charges you loan fees in documentation fees as well as a higher fee charged by the DMV to record and keep track of the lien on the car--in general it is in the $200.00 range. They simply need to make a title transfer a lot less paper work on their end.

As far as paying for vacation with Cash or Credit that is a personal choice some believe they will go and take there money with them others believe they will go and leave a lot of debt that is wiped as they have nothing to start with... and others in between that spend what they have and only that...there simply is not right or wrong just what you believe...
We personally do not believe in debt and are lucky enough to be able to afford to have none with anything we choose to do at this point in time.

 

[teller80]

The answer to this is actually a little more complicated than yes or no... and sorry this off the original topic...
NEW CARS-- a dealer buys the cars from lets say Honda and pays interest to Honda as they can not pay to have that many cars in stock so the faster they sell a car the less interest they pay and the more profit they make. So they want the cars off the lot...
Does a car dealer make money of a loan again yes and No-if it is through Honda (or whatever car brand) the answer is NO as they always have the lowest rates and special rates also include in this if the Brand offers 0% or very low rate they will also always offer X amount if you pay cash.... this is a manufacturer discount not dealer. If they finance you through a bank they get a kick back and your rate will be higher than through a car brand finance company also with this if you pay the loan off in lets say 2 months (in their contract do not know exact time) the dealer also gets nothing....
Used cars similar to above but rare Car brand itself will offer financing BUT here there is more of an incentive for a dealer to get these cars off the lot as they are paying interest to have them there.
lastly The dealer does not get lot for a higher interest Bank loan it is hundreds... so in the end will not make or break a deal if you pay ether way.

I have always gotten a better deal paying cash... simple understand you have the upper hand although some dealers will tell you finance so we make a few dollars--that is sales tactic putting in your mind he is making less on the car...they are not making less... If you have cash do your research walk in tell them you are paying cash and here is what I will pay don't want the deal... ok I will drive 5 miles further to the next dealer who will take it... get up and see how fast the manger comes running...Cash is king and you can trust me they have 19 other cars in stock with the same color and options as the one you are buying to try to make a higher profit on....

edited to add you will also save fees paying cash as the dealer charges you loan fees in documentation fees as well as a higher fee charged by the DMV to record and keep track of the lien on the car--in general it is in the $200.00 range. They simply need to make a title transfer a lot less paper work on their end.

As far as paying for vacation with Cash or Credit that is a personal choice some believe they will go and take there money with them others believe they will go and leave a lot of debt that is wiped as they have nothing to start with... and others in between that spend what they have and only that...there simply is not right or wrong just what you believe...
We personally do not believe in debt and are lucky enough to be able to afford to have none with anything we choose to do at this point in time.

This is great info, thanks for taking the time to explain it to me.

 

[verleniahall]

we don't take on debt to go on our trip - we pay it all off in cash

 

[robinb]

OP, do you think that people who use their credit cards shouldn't save money other places? Is it a requirement to pay off your CC every month to post on the Budget Board?

 

[North of Mouse]

OP, do you think that people who use their credit cards shouldn't save money other places? Is it a requirement to pay off your CC every month to post on the Budget Board?

Not the OP, but will put my 2 cents! Your first question? Where can you find savings to off set credit card interest??
Seems like it would be a false sense of savings - (if you're paying high CC interest each month) jmo!

Second question? No, not a requirement - guess I don't understand the question entirely - anyone can post how they saved/whatever on any budget topic, not just on CC's.

 

[kymom99]

Not the OP, but will put my 2 cents! Your first question? Where can you find savings to off set credit card interest??
Seems like it would be a false sense of savings - (if you're paying high CC interest each month) jmo!

Second question? No, not a requirement - guess I don't understand the question entirely - anyone can post how they saved/whatever on any budget topic, not just on CC's.

I take it as maybe a person has credit card debt but they are trying to pay it down. In the meantime they are looking for ways to save money in other areas of their lives.

 

[robinb]

Not the OP, but will put my 2 cents! Your first question? Where can you find savings to off set credit card interest??
Seems like it would be a false sense of savings - (if you're paying high CC interest each month) jmo!

Since when is the goal here to offset credit card interest? Why would it be a false sense of savings? It's savings ... pure and simple. Savings on a vacation or savings on their monthly budget. If they didn't save something somewhere else their vacation, etc would cost even more.

Seriously, this whole thread is like ...

Oh my stars and garters! Pass the smelling salts! Can you believe that people on the Budget Board (lowers voice to whisper) ... put their vacations on a credit card and then pay if back over time?

 

[descovy]

On the regular, we do not have cc debt. As in we pay it off monthly. But we do put certain vacations on credit and sometimes it takes a few months to pay them off. Not ashamed in the least.

We both work, and raise 3 kids. Between paying for everyday expenses, setting aside money for 3 college tuitions and our retirement, we might never have enough set aside for a vacation ...when we want it.

We've been to Disney. Just once, 10 years ago. The girls were age 4, 6, 8. If there was only one time to take them in their childhood that was the perfect age. You can't wait forever. Trust me, it wouldn't be the same to wait 10 years for the one Disney trip.

Bills will always be there. The furnace will break, or the car will need a repair. Most years vacation is church camp or visiting relatives. But sometimes you just gotta do it, even if it means a few months on the credit card.

 

[tasha99]

We put EVERYTHING on a credit card. If I could find a way to charge my mortgage, I would, but that is the only thing. Oh, and college tuition--they add a service fee for that that offsets the value of the points we would earn. We do pay the cards off every month, though.

However, if we were in a rougher place financially, I would likely either book ahead and save, or charge ahead and pay the vacation off before going, without worrying too much if it was only mostly paid. Time passes whether you're doing the things you want to do or not, and I'd rather do them. Ymmv.

Someone mentioned credit card interest, but there is no real reason to pay that. I have normal interest cards because I pay them off. If I wanted to carry a balance, I would choose no interest cards (boyfriend has a card with no interest until middle of 2018).

 

[CounselorX]

I use a credit card just for the perks and pay it off literally the next day. I'm that obsessive about not going into debt. I would never go on a vacation if I couldn't afford it, and if you have to use credit then that means you can't afford it.

My philosophy with almost anything is - If you can't afford 10 then you can't afford 1. The only real exception to this is a house, and maybe a car, but I use the philosophy on cars as well, which is why I don't see myself having a new car anytime soon.

 

[North of Mouse]

Since when is the goal here to offset credit card interest? Why would it be a false sense of savings? It's savings ... pure and simple. Savings on a vacation or savings on their monthly budget. If they didn't save something somewhere else their vacation, etc would cost even more.

Seriously, this whole thread is like ...

Oh my stars and garters! Pass the smelling salts! Can you believe that people on the Budget Board (lowers voice to whisper) ... put their vacations on a credit card and then pay if back over time?

To each their own - pay all the interest over time that you'd like - no one is making you do anything, but this 'is' the budget board and that's why 'not' paying cc interest is being discussed on this thread as a way of saving.

Just pass over the budget board if it's upsetting to you - your choice.

 

[robinb]

To each their own - pay all the interest over time that you'd like - no one is making you do anything, but this 'is' the budget board and that's why 'not' paying cc interest is being discussed on this thread as a way of saving.

Just pass over the budget board if it's upsetting to you - your choice.

No, this thread is not about saving money on credit card debt. This is about tsk-tsking and shaking heads at people for daring to be on the budget board and planning a vacation without without paying it off their credit card every month.

Let me refresh your memory ...

Just was wondering as this is the budget board and many of the questions that come up here are asked to save money. How many of you account for the debt you take on and the interest accumulation when pricing your Disney trips? I know that there are those who don't take on any debt to go to FL, but when your are talking several thousand dollars to go and putting it on a credit card to do so, these added expenses should be considered, right?

I guess part of me just shakes my head that there are people budgeting and saving like crazy to go and looking to cut costs, while a component of that same group just puts in on a CC and talks about the great deal they got and they are not paying off their CC balance every month.

 

[sarahothomas]

We took vacations when we made less than 50K!! We just did what we could afford and enjoyed it immensely!!

We love the Smoky Mtns. and that's our go to vacation spot. Love to hike, bike.

Yep, no one should go in debt to vacation - just need to do it within your means!

LOVE the Smokies. We are making a habit of doing "Friends-giving" every year there with another couple and some of DH's family. Between gas from NC, splitting the price of the cabin, food and other necessities, we spend maybe $700-$800 total, and that's us paying for 4 people. Not bad for a vacation during a holiday

 

[Nanaberry]

We too put every purchase on a credit card. Everything. Our debit cards and accounts have been hacked and money stolen from our accounts so we don't swipe debit cards at all any more. We pay our credit cards daily or weekly. So it's a safeguard for us. You can get your money back but faster if cc info is stolen vs getting it back from your bank. Plus all our our CCs have perks so it's like getting free money!

 

[Ava]

In general I don't like to carry a balance on a credit card for a vacation expense, but sometimes it's worth paying interest for a month or two in order to jump on a good deal. For example, I was saving discounted Disney gift cards to buy our park tickets for this summer when the last price increase happened. I did the math and I'd save more buying tickets from UT at the old prices than waiting until I had enough discounted GCs and buying through Disney. So I charged our tickets. It took me a couple months to pay them off so I paid a little in interest but I still saved a good bit of money over paying the increased price. And I'll use the Disney GCs I'd already bought towards our food on the trip, so no loss there either.

Everyone's situation and comfort level with debt is different. I don't believe you should go into extreme debt to fund luxuries, or take vacations on credit when you can't afford your basic needs, but at the same time you can't take it with you.