To pay for our holiday in instalments?

[ddddora]

It’s a few hundred pounds a month. Talking to a friend and she said it’s what most people do. AIBU to pay this way? It’s interest free, and we have the funds available each month technically it’s just less to put away in savings. ATOL and ABTA provider, only lose the small deposit if I cancel but can also move the dates if needed for small admin fee.

Can’t pay for it outright as it would deplete nearly all our savings & if I wait to book it, the prices will rocket.

What would be unreasonable about it? Perfectly acceptable way of paying for a holiday.

So long as you can afford it, why not?

A relative said that if you can’t afford the full amount in one go you shouldn’t book the holiday, but I just don’t feel it’s surmountable to pay like that in 2024!

If it's interest free and you can afford to pay it off every month then what's unreasonable about that?? As for that being what "most people do" I've no idea (never done it myself!)

And are you an independent functioning adult?

We've always paid for holidays like this. It's normal, isn't it?!

If you can afford them I'm not sure why this would be unreasonable?

Yes. Just like any other thread on here, people post to get a general consensus.

We've done this but by putting the balance on a 0% credit card. The holiday is £6,500 split across 12 months so still a hefty amount but feels more manageable and leaves cash free in case of emergencies. I can't see a downside personally, as long as it's not costing you more.

I pay on 0% because in the meanwhile the cash in savings I would withraw to pay in full makes some pounds. Imho that's just basic money smart

I do it pretty much every year. I don’t see the issue.
I booked our summer holiday with a deposit in December, and I make a payment every time I get paid. It has to be paid by the end of March, which I know is achievable.

We have separate money in savings. I don’t ever want to touch savings money for a holiday. It’s just personal preference.
And I personally couldn’t ever borrow or put a holiday on credit, and have to come home and then pay for it.

A relative said that if you can’t afford the full amount in one go you shouldn’t book the holiday

But by the time you go on holiday you will have paid the full amount, your relative is talking cobblers it's not 1990 anymore! There are loads of things in life that let you pay this way.

We’ve always paid out right when we book a holiday, we’ve got a saving account that we never take money out from, only pay in, and another account that we pay into and this is the one we use to pay for anything, so when we get to £3000/£4000 we book and pay for a holiday, we go abroad 3/4 times a year and my husband goes afford 2 weeks every year with a couple of friends to take part in his hobby

As long as it paid off before you go on holiday it’s fine in my opinion. For extra protection you should pay on a credit card but pay it off in full and end of each month. Don’t forget to book travel insurance.

Everyone I know does this, it’s very very normal!

They’re wrong. If installments are interest free then it’s a no-brainer to pay that way even if you have the lump sum. You put the lump sum in a Monzo or Revolut instant access savings account at 4.6% interest and pay the installments from there, bagging yourself the flexibility installments gives you, and saving nearly 5% of the price.

Of course it’s fine if you can afford the payments every month. Loads of people pay for expensive things this way. It’s totally normal. We’re still paying off our sofa (interest free). It was quite expensive so couldn’t pay it off in one go, but can afford the repayments.

I have never done this for a holiday, but I am curious about the old fashioned (I think?) mindset of not putting something 'on tick' or if you can't afford to pay for something in one go you shouldn't have it. This was drummed into me as a working class kid and I wonder if this is still a widely held view or not?

I used to work at Lunn Poly years ago and we regular people coming in each week paying money off their hols wether it was a haven holiday or trip to Florida
It's quite normal

Not sure you are correct about losing smaller deposit. There will be a siding scale of charges for cancellation including a minimum deposit you would forfeit.

We normally pay upfront but this year it was interest free installments, makes sense to me that I accrue the interest on my savings instead of travel agent.

That is very normal here. Even my mum, who keeps every receipt and handwrites every penny she spends in a little notebook, pays up her holidays.

DH and I are going to Japan later this year (so a pretty expensive trip) and I got a credit card with a long interest free period specifically for that. I have the money sitting in my savings and could pay off the card right now but I'd rather keep that "liquid" for emergencies and pay off the card monthly.

Why is this a thread? I was expecting you to say it was dodgy travel agent or you were having to use high interest credit or something. I don’t understand what the issue is? What’s your unreasonable thing?

I am quite private about my money . Your conversations are part the reason I don’t .
my way is fine .

lots of things people pay monthly , mortgage , cars . Klarna is often an option for bigger purchases .

do what’s right for you

I thought this was the normal way to pay for holidays

Unless your completely wadded anyway