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Original poster

To think most people go on holidays they can’t afford?

127 replies

vacaaytion · 18/10/2023 19:10

I’m hearing more and more of folk putting hols on their credit cards as school holiday prices are crazy. It’s not something we’ve done, we usually pay monthly through a travel agent and sometimes cut back in other areas to afford it but I can’t imagine paying for something years after you’ve been on it - it would suck the joy from it for me - I think! Unless this is more normal now and anything else is the unusual way?

OP posts:
MermaidMummy06 · 19/10/2023 05:39

People have different priorities and comfort with debt.

We save weekly for holidays and book what we can afford, others spend everything they've got, or put it on credit. We're all different.

Neverinamonthofsundays · 19/10/2023 07:05

This year we had the funds available. If we want to go next year though we have to start saving once xmas is over. Neither of us have a credit card/loans/overdrafts so we either save or stay home.

chuffachuffchuff · 19/10/2023 07:08

I know one friend who goes regularly and she does put it on cc. Holidays mean a lot to her. Another friend has no outgoings and pays outright. Other people I know at my age pay outright. Me included. I don't have what I can't afford.

Pigeonqueen · 19/10/2023 07:30

I put holidays on credit. My dc are at that age where I don’t think they’ll want to come away with us as a family much longer (one is 20), so I want to make the most of it whilst I can, and I’ll pay it off as they get older and don’t need us as much. It’s manageable debt though, we don’t have a mortgage (own outright) and other bills are low so we can swallow the repayments without really noticing it. I just move it around to 0% cards. We always go in school time.

Nokoolaidherethanks · 19/10/2023 07:41

We buy pretty much everything on credit card. But pay it off each month so never pay interest. Or we spread payments where possible as long as it's 0% interest. Never pay monthly instead of annually if it costs more in the end. So another one here where using credit does not equal getting into debt.

LimeCheesecake · 19/10/2023 07:49

@vacaaytion - I’m confused - you are slagging off people for going on holidays they can’t afford - because they have to put them on credit cards then pay that off over time, yet you go on holidays you can’t afford - you take out a loan from the travel agent and pay off in instalments.

why is paying off the debt monthly to the travel company not a debt you are paying for something you don’t need, yet booking the same holiday via a credit card is a debt in your head?

You are also incapable of saving and then just buying a holiday without credit.

Diymesss · 19/10/2023 07:55

My holiday this year including spending money cost under £1,000, so I was able to pay it straight away.

IndiKid2015 · 19/10/2023 07:58

I cannot see how many people can afford to pay the extortionate prices without putting it on a CC so expect it’s fairly common. We did it once a few years ago and it was miserable paying it back so I don’t think I’d be tempted to do it again.

sekift · 19/10/2023 08:02

We put our holidays on a credit card as it's the financially secure way of paying, it's then paid in full, what evidence do you have that large swathes of people are using CCs for holidays and paying off for a long period after? I've never had that conversation with family and friends tbh.

OrderOfTheKookaburra · 19/10/2023 08:08

Sandalholidays12 · 19/10/2023 03:41

@OrderOfTheKookaburra how do you know people are paying lots of interest for their holidays? I imagine most people book with someone like TUI, place a deposit and then just clear the balance off before they fly. I think its really bizarre to assume otherwise. MN are always very sour grapes about holidays in general though.

I didn't say lots of people pay interest! I said people who pay off their credit card over a long period of time pay lots of interest, and that it was a completely different scenario to paying for a holiday in a credit card and paying it off immediately.

SliceOfBread · 19/10/2023 08:08

Like many, I pay be credit card for the protection and pay it off.

For those that can't afford to do that in one go, some of the tour operators such as Jet2 let you pay in installments with a £60 deposit I think.

UnderstatedElegance · 19/10/2023 08:10

I honestly have no idea how my friends pay for their holiday's. I don't see why it really matters how people pay.

Normalsizedsalad · 19/10/2023 08:14

I pay by cc for absolutely everything. Cashback🤷
I do pay it off every month though.

Yes paying installments to travel agent is exactly the same as paying it iff on cc or loan... As long as they do it on low or 0% card it's ok

Mrsjayy · 19/10/2023 08:17

Chelsealocke · 18/10/2023 19:42

Paying through a travel agent in instalments is still getting into debt for a holiday though?

This , there is no difference in paying off a cc than going into TUI the 1st of every month, we book holidays online mostly and pay on a cc lots of people do doesn't mean they can't afford their holiday.

BurbleBumleBleep · 19/10/2023 08:29

Ok I’ll stick my neck out @nd say I do this.
I am going on holiday every year regardless. Maybe more than once a year if I have friends inviting me or weddings etc. I love travel and have been going away independently since I was 16. If there’s an excuse to go I’m gone.

I’ve always had zero percent offers for transfers on CC’s. I don’t save in advance but put the money on the card
It all gets paid off before the 0% runs out. I suppose if there were no more 0% deals I’d have to cut back to quickly pay it off.

EasterIssland · 19/10/2023 08:35

I put part on PayPal credit and part on credit card. Can I afford it ? Yes. So it doesn’t really matter as long as I pay for it.
paypal credit allows you paying back within 4 months so more time to pay the flights back(we tend to travel to USA or Asia so not cheap flights)

menopausalmare · 19/10/2023 08:38

We pay for ours on the credit card for payment protection and points but we have saved across the year and pay it off in full the month after.

LumiB · 19/10/2023 08:43

I paid some holidays on CC pre-covid becuase it was the first time in 10 years I could actually go - previously I have spent my time building up enough deposit to buy a house and furniture. I could afford the monthly payment vs paying for holiday all in one go. Plus its 0% interest so why not. Not to also mention the added protection. It was at a time I wasn't earning as much as I do now but I'm glad I did it because then covid hit and I am glad I had travelled beforehand especially as it was much cheaper than now! I am still paying it off I have a small amount left £2k but its 0% so there is no incentive to rush to pay it off. However if I needed to, I could easily clear it.

Might aswell take advantage of 0% credit so long as how much you're spending is within a reasonable amount you can clear it off quickly if need be.

BurbleBumleBleep · 19/10/2023 08:44

Also I think lots of people do this.

But I also think lots of people ( especially in my neck of the woods, SE) have lots of disposable income. In my friendship circle three different people have spent in advance of £20k each on holidays this year and the year isn’t over yet. They easily have enough to cover this. Two are working retired so mortgage paid. money in the bank. The other got inheritance ( mortgage paid first). If that’s just people I know personally how they fund it, I am sure there’s other friends who also have enough.

Oliotya · 19/10/2023 10:03

We always pay on credit card. Our most recent went on cc because, aside from the additional protections, it made more financial sense to keep our savings earning interest. We have a large credit limits and little other debt. I assume lots of people are the same. I doubt many people pay all at once in cash, it's not particularly sensible.

2chocolateoranges · 19/10/2023 10:10

Scottishskifun · 18/10/2023 19:30

Really?
Most of my friends pay for them on credit card but all pay it off on the next statement mostly. Its done for protection purposes with my friends and I not a getting into debt thing or doing it because we are living beyond our means

Show quote history

There’s a huge difference from using the credit card and paying it off in full and using the credit card but paying off a minimal amount throughout the year.

we use the credit card in the 1st example, pay holiday on Cc pay it off in full.

HighEndGrifters · 19/10/2023 10:21

We pay for ours, from the interest on our investments, we still put it on a CC for protection, and clear it in chunks.

If your travel agency goes bust, bang goes your money, you are much more exposed than people who are sensible enough to put it on a credit card.

TheBirdintheCave · 19/10/2023 10:21

I pay upfront for holidays (unless the accommodation isn't pay in advance in which case I pay either at the hotel or before we go) but have been considering getting a credit card and only using it for purchases I can immediately pay off. As people have commented earlier it gives an added level of protection for claiming money back if needed.

YouveGotAFastCar · 19/10/2023 10:22

I buy holidays on a credit card but pay it off that month. I wouldn't enjoy a holiday that I hadn't paid off.

LumiB · 19/10/2023 14:25

BurbleBumleBleep · 19/10/2023 08:44

Also I think lots of people do this.

But I also think lots of people ( especially in my neck of the woods, SE) have lots of disposable income. In my friendship circle three different people have spent in advance of £20k each on holidays this year and the year isn’t over yet. They easily have enough to cover this. Two are working retired so mortgage paid. money in the bank. The other got inheritance ( mortgage paid first). If that’s just people I know personally how they fund it, I am sure there’s other friends who also have enough.

I now have a big saving amounts circa £30k I could easily pay off my holidays but I've left it in a high interest account earning me money, whilst I just stick holidays on 0% credit cards to an amount I can afford the monthly payment. I end up making more money this way, than paying off my holidays in full using my savings. This works for the moment since saving rates are quite high.