To think it’s fairly normal to put a holiday on a credit card?

[isobelok]

And pay it off over the year?

I’m not talking maxing out the credit card and letting the interest build, more putting it on a 0% credit card and paying it off over the year, even if you’re still paying it a couple of months after your return from holiday

Talking to a friend who said they’d never go on a holiday that they couldn’t pay for outright and that they would save up first. We are in a different situation where holidays will be cheaper until baby turns 2 as they will travel free so it kind of makes sense to do it now rather than wait and save and inevitably pay hundreds and hundreds more when we do go. I also think it is easier to travel with a non-mobile baby so will probably make the most of going abroad in the first year, and then maybe just enjoy UK holidays whilst they are very little and reconsider going overseas when they’re slightly older

There's nothing wrong with using a credit card - it gives you much more protection than a debit card and there's nothing inherently wrong with debt (especially if it's on a 0% deal). So long as you have the funds to pay it off, it can be a better option. Even then, if you have a 0% card, you might as well pay the minimum payments, whack the money into an interest-earning account and then pay it off later.

I buy everything on a cc. It gives protection.

I'll pay for it by credit and because of the added protection, but I can clear the cc straight away.

I was made redundant almost 2 years ago, so I haven't been on a recent holiday, though I am now back in work. I will rebuild funds a bit before going away.

In my mind holidays are a luxury extra in my mind so I wouldn't put them on CC unless I had sufficient savings to pay them back immediately. Something could happen in the course of a year to prevent you paying it back.

I wouldn’t rely on a credit card to holiday. I pay on credit card for the added protection and then pay it off in full straight away but I wouldn’t carry it over

Yes I always do that as you get so much extra protection. Crazy not to!

Of course lots of people do it.

Key thing is to have a plan to make sure you can get it paid off within any 0% (etc) periods, and keep on top of monthly payments to avoid defaults/ interest etc.

But if you are sensible with it, absolutely crack on.

I can afford to buy holidays outright but still put them on 0% cards and repay them when I want. I'd rather my money earn interest in savings accounts for longer so in my head it makes more sense to not pay outright upfront. But others take a different view so I don't think there's a right answer. I don't think you should put holidays on a credit card (whether it's 0% or not) if you're unsure if you can repay.

This is why so many people have financial problems.
Yes I use a credit card for the financial protection but pay it off immediately.

What happens if over the year you get made redundant/have some expensive house problems/you or your spouse has serious health problems that mean you cannot work? You are left with a debt for a non essential and no way to pay if you don’t have savings.

I put it on the credit card but pay it straight off at the end of the month. I never leave a balance on it.

I have 🤷🏽‍♀️ will be paid off in a few months so no worries!

I couldn’t enjoy a holiday which hadn’t been paid for. We don’t have buckets of money and currently with 3 children can’t afford to go on holiday every year .
We go on holiday every other year and the holiday , spending money and airport parking is all saved in advance .

I like knowing everything is paid for.

However I totally understand why you would do it your way :)

Agree with everyone else - it's sensible as long as you are able to pay it off interest free and have capacity to fund emergencies. Otherwise its a risk that you'll end up paying more in interest should you not be able to. Better to put the money away to buy on the card and pay off straight away. Depends how much of a risk you and want to take. Is it just for you or are you married/partnered? My ex used to like me to use my interest free overdraft for emergencies, instead of paying interest, but the risk was all on my shoulders which was a great bone of contention!

Holidays are a luxury so something I save up for.

I would never put one on a credit card.

No I would never go on a holiday that I couldn’t afford at the time of purchase. I save up and make sure I have enough before I buy anything.

Payments via debit card do also get protection.

I pay for all our holidays on a credit card, because of the protection it gives you. I always pay it off before the holiday and never pay interest. All my big purchases go on my credit card.

We book ours a year in advance, pay a deposit up front and spend a year saving up for it and looking forward to it. I'd hate to spend a whole year paying off something I'd already enjoyed.

I personally don’t book a holiday or buy an expensive item unless the money is sitting in my bank account.

i don’t know anyone who pays for a holiday on their credit card and pays it off over the full year.

Always pay on a credit card for the protection it offers. But we tend to save over the course of the year to pay for two holidays the next year, IYSWIM. I don’t like having debt to pay AFTER the holidays!

No I don't think it's normal. Most people pay upfront.

Somewhere in between. I’d put flights on a 0% CC and pay monthly, but that’s a choice to keep money in savings accounts earning interest. Never would I go away for a holiday that’s not paid in full.

Re Package holidays, same principle but I only pay the balance to the agent the week it’s due. Life happens and I don’t want to fight for my money back if there’s a problem.

So I would say no shade on the 0%, but it would be pretty depressing to get back and still have to pay off a holiday that’s already been enjoyed.

I think it's a lot more normal practice in RL than on MN (where most are pretty sensible!) - it's how the banks make their money! Relying on people to take the risk, fuck up and pay interest.

We have never been abroad (as a family), I can’t afford it and wouldn’t use a credit card to pay for one. I have used a credit card once for car repairs as I had no choice but wouldn’t use one for a non essential thing. I think it’s fine though if you know you can afford to pay it back each month.

They’re talking about section 75 protection if the trip goes left, or isn’t as described. If you pay using credit, then the credit provider is equally liable for the item / service purchased.