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

Spending on 0% credit cards and paying them off before the debt becomes interest-bearing is perfectly fine.

This is how I got through my early 20s. I was earning a low income as a trainee and paying stupid rent in London, so all my socialising, travel, clothes etc. went on 0% credit cards. But I knew I would be qualifying soon and getting a massive pay rise so I could pay them off (which I did and didn't pay a penny of interest).

I wouldn't have wanted to miss out on an amazing time in my early 20s because of some silly notion that all credit is bad and life destroying.

No never. I would initially put flights etc on CC but only with the intention of paying after payday. We would pay that off before going on hols. I couldn't enjoy a holiday knowing it was all sitting on a CC. In saying that each to their own and if it works for you do it.

The ticket price is based upon the child's age when travelling, not when you book, though?

It is fine. We always go for 0% finance if it’s available, that way we continue to get interest on our savings. It’s financially savvy.

We do this every year. In my opinion it’s no different to booking a package with someone like TUI or Jet2 and paying it off monthly. We always make sure it’s paid off before we go. We often book flights and hotels separately and book as soon as flights are released to get best pricing.if we waited until we had money upfront we’d miss out on the best prices.

I wouldn't go if I didn't have the money (or wouldn't once I got paid).

Holidays are a luxury. Debt is for essentials if you are struggling.

I have used 0% credit before but rarely had any other debt except my mortgage.

I always pay using a credit card but pay it off straight away

I put it on 0% credit card, then put the equivalent in a fixed savings account ready to pay off at the end of interest free period and benefit from savings interest.

I put everything on 0% credit card and put my money in savings. Makes only pennies I know because I pay off balance in full each month but I feel like I have one over on the banks. Like cc protection too.

We put it on a credit card due to the protection but pay the credit card off in full each month.

I don’t think it’s a terrible idea but sounds risky to me

I have booked a jet2 holiday for summer 2025 and I am just paying it off in installments interest free which is less risky imo. Cos if something major and unforeseen happens I don’t have to pay any more (granted I won’t get the holiday either). And more importantly I know there’s no interest so I might as well spread the payments out.

I would never buy a car on finance either, though I know that’s quite normal

our credit card company must hate us we use it but pay the balance in full every month- we use it as easier to manage our overall expenditure. We live well within our means but I know not everyone is that fortunate

Not the way you're doing it, we don't.

We do sometimes if we have the money in high interest savings to keep it there for longer.

Has it ever occurred to you that there's a reason why there are these 0% cards available? It's basically because people are terribly optimistic about paying them off so end up paying lots of interest when the deal comes to an end

For something like a holiday, I just wouldn't.

My general rule is I don’t use credit for any spending that isn’t a) one off and b) valuable in the long term (e.g. something you use every day like a car or sofa).

Once you get into the cycle of putting recurring short term spending on credit, it’s hard to stop. You’re often still paying off the last time meaning you’re short when you want to make the next purchase.

I shifted to this mindset after racking up loads of debt in my 20s on short term expenses I felt were justifiable like holidays. It’s taken me 5 years of overpayments and a redundancy payout to clear it all and I wouldn’t have managed it without changing my attitude to credit.

I pay for my holiday on a credit card, but I pay off my balances in full every month so I never pay any interest. In 25 years of having a credit card, I've paid interest 3 times (as in - 3 separate months ...over the 260 odd months). And that's included when we got a new kitchen and various emergency travels as well as day to day expenses.

I pay everything major on credit card for protection. We don't buy anything we don't have the money for, and pay off within the month. I don't like the idea of spending money we haven't earned yet, where is your safety net?

I’ve never put a holiday on a credit card. Actually, I don’t have a credit card. 🤷🏻‍♀️ Though to be fair, I’ve never been on a package holiday (which I assume is what you mean if you are buying the entire holiday at one). I guess the cost would be spread though just buying everything separately. Flights at booking, Airbnb or hotel usually a deposit and then just before travel, food and activities while we’re there.

It's very normal, but I wouldn't want to. Better to save up first then you'll know you can afford it when it comes to paying out. Suppose you have a big drop in income after you are committed to the holiday? And suppose you have a horrible time and have to keep paying for a while year??

Not everything is "fairly normal" - people live their lives and manage their money in different ways.

We have done this, but don't make a habit of it as it takes ages to pay off!

If it’s 0% interest it doesn’t matter. I divide the amount by however many months are at zero, set up a direct debit to our savings account then pay it off in full at the end of the interest free period.

Nearly 50% of adults in the UK have some form of credit card debt, and nearly every adult has at least 1 card. Despite what people say here it is pretty normal for people to put big ticket items like holidays on credit cards and pay them off over a few months - not everyone is in the lucky position of just being able to pay for such things in one go. Credit cards are the chainsaw of money products - used sensibly they are an incredibly useful tool, but if you aren't careful you can chop a limb off.

As long as you go into it with your eyes open, have a plan to pay the balance off without incuring interest etc, then there is nothing wrong with it.

I will bet as well that a great number of people here claiming they never use credit cards will happily use debit cards despite them being a much worse financial product.

No, I wouldn’t want to go into debt for anything non-emergent. I have a cc for the airline points but I clear it immediately.

I can only assume that the people who think paying a couple of hundred quid of interest a month is a hideous idea have never had £2000 a month exorted from them completely unnecessarily and unfairly by a greedy landlord? It sort of puts into perspective that most of your money is wasted on unfairly paying people who don't deserve it, and makes interest on a holiday seem like nothing really in the general scheme of things.

Also doesn't anyone else worry that if they died suddenly without any debt they'd regret it? Like it would be much better to die with a net worth of -£5000 having had a couple of great holidays than at 0 having missed out on those experiences??

We never but everyone is different

I wouldn't borrow money from a credit card or otherwise to go on a holiday. I wouldn't use the last of our savings for it either - I appreciate that many others would have to. And I do think holidays are important.

In theory it's fine because you are paying back over a 0% interest rate: but you are not leaving any cushion for yourself. Unexpected illness or expense could lead you to getting into trouble, there has been times where we just couldn't afford a holiday.