Well that's good, but saying it's reckless spending when some people can afford to pay their credit card monthly without worry, but don't have all of the money to pay for a holiday in one go, is a little silly.I'm comfortable with the one I have thanks. It's nice not worrying about paying off the credit card.
Poll: How do you pay for holidays?
- Thread starter SideWinder
- Start date
Soldato
I'll answer properly now, i rushed my answer last night.
I'll pay at least £120 of a holiday on a credit card so that i'm protected by arcticle 25 should the vendor go bankrupt, as happened to me last year when i booked with Lowcostholidays*. I would then pay the £120 straight off the card.
* Last year, i didn't actually pay with a credit card, however, i paid with paypal, and fortunately, i got my money back after raising a dispute, but in future, i will pay at least £120 on a credit card for that protection.
Caporegime
You know all those articles you read about unsecured debt spiralling? That's how they afford their holidays.
Soldato
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Each to their own, but if you can save enough monthly to pay off the credit card each month once you have incurred the debt, why not save before the holiday and just pay cash (or put it on card and pay before incurring interest)? It's good that you pay it off of course but credit card interest is pretty high so always best avoided
Not being critical, just offering advice. The way I look at it, the money I don't waste by paying credit card interest I can spend on other things
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Soldato
You are obviously not covered by Section 75 for debit but most banks offer chargeback so there is cover.
This
I never understand this possition. If you'd emotionally benefit from a holiday or anything else and you don't have the immediate cash, but the interest payable is relatively nominal - go for it.
I've just put something on card that I'd have the cash for in a month but will probably prefer to pay it off over ~3 months to retain a cash blanket for other things. The interest will only be ~£30 which is a nominal sum to me. That said, I'm otherwise financially secure.
Paying interest does not necessarily equal financial mismanagement.
@SideWinder - work out the interest and see if it's nominal or not to you.
Soldato
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Holidays aren't essential though and you don't have the money right now, so yeah it is still a little reckless.
Soldato
Or just wait 3 months and put the money aside each month and pay for it then, saving yourself some money in the process and achieving the same outcome? £30 isn't "nominal" if you don't have the money on hand to buy something without leaving you uncomfortably exposed with no safety net.
Soldato
All on credit card and then paid off in full at the end of the month. Use Halifax Clarity card whilst away, again paid off at the end of the trip.
Soldato
That is all well and good except that flights are not a fixed price all the time. Whilst you are waiting your 3 months in the example the available price could go up way more than the nominal £30 in interest over that period.
I suppose it ones of the things on this forum, like if you don't go to the gym everyday you are an overweight lazy ********, ... if you use a credit card you must pay it off immediately no matter what your financial situation.
Soldato
They could also go down - so solve for the facts at hand not something that's a roll of the dice.
Caporegime
There is an app call Hopper (on iOS and Android), it uses lots of available data to predict whether the price you are looking at are likely to go up or down. It's not conclusive but certainly if it says it is the cheapest ever….then it's probably best to get it now.
Don
If I was borrowing money for a holiday I wouldn't be doing it with a credit cards interest rate, surely can get a better deal elsewhere?
Soldato
Pay with credit cards but clear balance before any interest charges. Or we often decide a budget for a holiday and save for a few months. But will always make the purchase of any flights and hotels using a credit card.
Soldato
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3) Other - I don't go on holidays.
Paid for Vegas at the beginning of the year on credit card, money we won there then paid for the last trip to Poland we had, and then the money we got in compensation for the flight being delayed has paid for the trip to Poland we are going on in a couple of weeks...we have essentially managed 3 free holidays this year as the money we won in Vegas could have covered the entire cost of the holiday twice over ^_^
We usually have 3 or 4 holidays a year. (1 foreign 3 UK)
For foreign holiday, pay deposit via debit card (usually around £300)
Save £200 per month in our joint account & pay off in full 3 months before flight date.
UK holidays just pay outright for them when we book via debit card.
We have a saving account which we both pay into, (amount varies depending on what we have free each money) so that usually covers the cost.
For foreign holiday, pay deposit via debit card (usually around £300)
Save £200 per month in our joint account & pay off in full 3 months before flight date.
UK holidays just pay outright for them when we book via debit card.
We have a saving account which we both pay into, (amount varies depending on what we have free each money) so that usually covers the cost.
People throwing around the word reckless and essential. Hope they are holier than thou. 
Use whatever suits you. Want to stick it on a credit card, go for it. Pay it off instantly or over a set period, your choice.
Most things I buy aren't essential, whatever that means nowadays. I finance some of my purchases. Hell I even lease my car.
Maybe I'm just a poor uneducated person living beyond my means
Use whatever suits you. Want to stick it on a credit card, go for it. Pay it off instantly or over a set period, your choice.
Most things I buy aren't essential, whatever that means nowadays. I finance some of my purchases. Hell I even lease my car.
Maybe I'm just a poor uneducated person living beyond my means