To use a credit card for a holiday?

[WindowGazers]

I've never had a credit card before, and don't have any debt other than for a product I bought which costs me £30 a month. I can never afford the lump sum to go on holiday, and all my savings are in a fixed rate account which I can't access. This is mortgage money as I'd like to buy a house and don't want to dip into it. I was thinking of a 0% credit card instead and just using this to go on holiday, paying it off over a year, then doing the same a year later. I'm good with money so I'd have a plan in place of monthly payments to pay it off. Is this a wise thing to do?

Always use a credit card for a holiday. Then you’re covered under the section 75 rule in
case something goes wrong. I mean what’s the difference between saving up monthly and then paying in 10 months time when you could pay now (securely) and then pay off in 10 months 🤷‍♀️

See I didn't know this. I haven't been on holiday for so, so long (due to childcare costs. I've spent enough on childcare costs to have gone on holiday once a month for the last 3.5 years 😅)

Yep that’s what we do. It’s what loads of people do. As long as you’re fairly sure - as much as anyone can ever be- that you’re going to be able to pay it back it’s fine.

I wouldn’t use a credit card to pay for a holiday if I didn’t have the money in my bank account to pay for it outright. I use a cc to pay for things for the protection it offers. Save up for the holiday and go next year.

I have done this in the past so I wouldn’t criticise you for doing it but…if you can afford the monthly payments on a credit card why can’t you save up for a holiday?
In my experience it’s a horrible feeling still paying for a holiday that has been and gone 6 months later! It’s much more relaxing going away with the money already in the bank.

Just save up? Wait for the holiday until you have the money. Don't get into debt for it.

I think you've missed the point. Paying on a credit card when you've got the money in the bank for the repayments is fine and safer yes. But as it stands if you're saying you never have a lump sum then you can't afford it and will risk debt. Otherwise you'd just be able to save a lump sum this year instead of the monthly repayment?

I wouldn’t get into debt for a holiday. I would prioritise house buying if you’re renting and maximise your deposit money instead.

Delayed gratification is an important skill to learn. Don’t teach your children to buy now and pay later! It’s not a healthy relationship to have with money. No one knows what could happen and you’d be stuck with a cc debt and no way to pay it off.

I do in an emergency, I can take the money out of my account which I'll get a small charge for which of course I would do if for any reason I couldn't keep up with the repayments, but I know I'll be able to afford it as my childcare costs will be falling off and they're a lot. I'd prefer the idea of paying it off monthly as I could afford something a little nicer and a little longer.

In my very humble opinion, credit cards should NEVER be used to buy things you don't need. As in, things like food, transport, clothing - and not clothing just because you like it... Clothing you have to have. They should not be used for going out to restaurants, holidays, days out etc. unless you pay the balance off every month. I am very aware that others will disagree with me and that I have a terror of being in debt. My ethos is... If you can't afford it you don't buy it. I have a sibling who is on the verge of going bankrupt and losing their very lovely house because they don't have that ethos.
Why not just save up the money you would have paid off the credit card with and use that to go on holiday? You won't be paying interest so you will be able to have a nicer holiday.

But what's the difference if you're paying the same amount monthly? I'm not bothered about paying it after I've been as I know I'll be able to do the same again.

If you can’t afford to save for a year to go on holiday, you also can’t afford to book a holiday now and pay it back over a year. I’d never go into debt unless I had zero other options.

Like others; I’d pay a holiday on a credit card for protection under section 75 (although I always book package holidays anyway so I’d be protected under ABTA) but I’d pay it off as soon as the bill came in.

You could also book for next year with a travel agent and pay it off monthly with them, but again, this is risky if you normally can’t save for a holiday anyway.

It's going to take me years to save for a house.

Sort out your house first . Holidays aren’t all that important if you don’t have a secure home first. You’re just pushing it further out of reach.

Then save for the holiday first and then go?

Using a credit card now might mean a better price than saving and booking later, and more choice.

I agree though, I would be wary if I could only just afford it. Things change.

Yes I would and have done.

None of us know how long we have on this earth and we should enjoy ourselves whilst we are fit and able.

I think my view was shaped by losing my dad when he was quite young and he had put a lot of fun things off “for retirement” and never got there.

If you can afford the monthly repayments why can't you start saving now and go on holiday when you have the money saved? I find it easier to save for something I'm looking forward to getting/excited to go on, than still paying off something I did months ago so can't save for the next thing I want.

I always pay for flights, holidays etc on CC because of the extra protection it offers but I've already saved the money each month and can pay the CC bill in full.

I’m with you. Previously we threw caution to the wind and used overdrafts etc, nothing we couldn’t afford to pay back but things that needed paying back after. Now, we save for whatever we need but we do have an active credit card for genuine emergencies, we do use the credit card sporadically to keep up our credit rating but we pay the bill off in full when we get it. We live fairly frugally so this is manageable for us.

I think you should. Times are hard enough at the moment and if you are sure you can pay it back that’s not an issue really.

I'm a lone parent though on a modest wage, it'll take me years and years to save for a house. I'd love to just take my son on holiday. I can do this for around £600 which I could easily pay off within a year. If its 0% interest it would also mean I could take him this year before he goes to school and do it outside of school holidays (unless a school is likely to let me take him out for 10 days?)

Instead of paying the card debt off, save for the holiday.

I’d agree with this to a large extent, but if you’re sure you’re able to pay off before the interest bearing period begins then do it. But don’t just pay what you need to clear the debt, put 50% more than you’re paying to clear the debt in another savings account as then next year you’ll only need to borrow 50% of the holiday cost, and the following year you’ll be able to go on holiday without borrowing.

Dont get into the interest bearing time on your credit card as it’s a really expensive way to borrow - you’re better off having less savings and no credit card debt.

I could do this but it would mean taking him when he's at school so he'd likely only be able to go in school holidays, which will cost a lot more.