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?

If you have a sensible, manageable plan for paying the card off then go for it.

People are weirdly afraid of credit cards when in actuality, used sensibly they are one of the best financial tools you can have.

Yes this, we have a Cc specifically for holidays it makes sense.

Exactly this! But you have said that your childcare payments will be coming down soon and you do have the money saved to pay of the card in an emergency, so if you’re comfortable with it then why not?
I love holidays and have and will prioritise them over other things, so I get the temptation.

People are weirdly afraid of credit cards when in actuality, used sensibly they are one of the best financial tools you can have.

Not generally in situations where people are buying a holiday that they can't afford to pay for upfront though.

Some replies are ridiculous.

Get a zero percent card, book the holiday. Pay it off monthly. You even have a safety net for if any reason you can’t pay it off monthly.

If you could go on holiday with the childcare you pay every month then you’ll only have to wait one month to pay for the holiday ?

The card with my bank is 0% for 27 months.

Which ones are ridiculous?

I speak from personal experience. The only ridiculous thing was my spending outwith my means. Earring others not to do it is not ridiculous.

I’d never get in debt for a holiday, which is essentially what you’d be doing. If you can afford the monthly payments after you’ve put it on a credit card, you can afford to save up in advance using those same monthly payments.

I always pay for a holiday on a credit card as it gives you extra protection but always pay off the balance straight away from money I’ve saved up.

The OP has stated she can afford the repayments and that they have money in savings - it might be a fixed rate account but assuming they can access it if absolutely necessary to avoid paying fees etc on the card it entirely makes sense to leave those savings earning interest and pay for the holiday on a 0% card.

Those saying go ahead are probably the ones with cc debt. Those of us who are recommending saving for it probably don’t have any cc debt. I know which group I prefer to be in in the current financial climate.
It would be unwise to spend money you don’t have yet on a holiday. But you sound like you just want people to tell you to go anyway.

That a credit card should never be used for anything other than essential living costs mainly - clothes you need, not clothes you like for example.

I understand some people are adverse to any debt and the reasons why, but CC if used correctly are a good thing. The OP has clearly thought everything through, she can get a 0% card, has the money to pay it off and has a back up plan with savings should she absolutely need it.

That's exactly it. I have the money in a fixed rate account. If I take this money out I lose out. If I use a credit card which is 0% I don't lose out. If I need to pay it off then the money is there but I'd rather not lose the interest and be charged for accessing my money. The option is there though in an emergency.

I have no debt except my mortgage actually, but have had credit cards in the past - used them for big purchases and paid them off within months.

Not sure what you mean?

You have the money, you are just managing the pots...go on the holiday!

I used PayPal credit to pay for a holiday last year. I was desperate for one and had paid the PayPal off that was already there. But now I'm still paying it off and accruing interest. I wish I had saved up really.

Savings she needs for a deposit ? I wouldn’t risk that for a jolly in the sun.
We teach school children at 7 and 8 about the difference between wants and needs and delayed gratification and yet adults still can’t grasp it. Is it any wonder people are in debt when they don’t have the common sense to save for what they want?

This !

Or we know how to manage debt to our advantage. If you are sensible about it, as the OP is being, you can work the system.

I have money in savings AND money on credit cards.

The money in savings earns me interest. I pay zero interest on my credit cards.

It takes a certain amount of financial savyness (sp?) to be able to manage your income like that. Not many people could do it successfully.

Or we know how to manage debt to our advantage

Exactly. Which is why we didn’t overpay to clear our mortgage early. We made more money by not doing so.

Agree with you @DilemmaDelilah It’s too easy to get sucked in and before you know it, you have debts you can’t repay and interest mounting up. Yes, in an emergency, but a holiday isn’t an emergency. I’d save this year to go next year, knowing you have the funds.

Actually I’ve change my mind.
Book the holiday and pay it off for a year when you get back . And keep doing that every year!

But the OP is talking about a £600 holiday which she will pay off within 12 months, so can presumably only afford to pay £50 per month towards this holiday?

If I was within such a small margin of finances, I wouldn’t be risking booking a holiday. It sounds like her son starts school in a year and she’s paying significant childcare costs now, and part of the reason she wants to go now is because the holiday will cost less because she can go in term time.

However, once she starts school, she’s going to be significantly better off each month. She will then be in a far better financial position to afford said holiday, and would not need to use a credit card to book it (even if it was slightly more expensive)