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

I'm with your friend in that I wouldn't go on a holiday I hadn't pre saved for - nit I would use a cc for the protection and pay it straight off. But I'm a single parent so just my income. Maybe i would feel differently if I was in a 2 income household where it is not all on me (ie if I lost my job there is no back up income to keep paying off cc debt). Your reasoning sounds sensible though

I wouldn’t dream of putting it on anything other than a credit card in case something went wrong. Same applies for all other purchases over £100.

Spreading the cost with a 0% deal is fine as long as you pay it off before the term ends. I’ve done it quite a few times for big purchases. Not sure why people get so funny about it.

as someone who has worked in the travel industry…. ALWAYS put it on a credit card. It is one the best ways to protect if something goes wrong with the company booking from.

All my holidays are on a CC - you get extra protection and its paid off immediately

It's the living bit that's difficult with a -£5000 balance, not being dead. Would also make it bloody difficult for the surviving spouse to pay for a funeral, too.

Of course it is - holidays are expensive!

OP - id feel too nervous with this. Can you save this amount each month until the summer then see if you can get any last minute discounts without having to pay anything off after holiday.

It's a good plan. You increase your protection paying by card as well.

Never here. I pay on credit card to get the protection, but I will only have a holiday using money I already have.

holidays here vary based on my budget that year: camping, hostels, hotels, cottages, 4 days up to two weeks over the years.

I don't agree with people saying that holidays are not essential. They are. Especially with the awful weather that we had last summer. I would have gone crazy if I hadn't had my fortnight in Spain. That said, I could afford to go: like others, I put it on a CC for added protection, not because I am insolvent. But I am loathe to judge anyone who feels that they really need a holiday. In our climate, they are close to being a necessity.

It makes sense to put it on 0% credit card and keep the money on a good savings account because you are making an interest on the savings in the meantime. I wouldn't buy holiday on cc if I didn't have money to pay ot off ASAP though as I would find it too stressful and worry about something going wrong. Everyone can do what works best for them though 👌. If you have the job security and steady income then why not?

I agree.

I wouldn’t book a holiday I couldn’t immediately afford no, you never know when the boiler/car/washing machine is gonna blow up. That’s what an emergency card is for. Yes I book on credit card for protection and points (john Lewis) but pay next month

I always put holidays on credit card.

It's additional protection if needed

Sometimes I pay them off straight away sometimes I don't.

I do this. I wouldn't put a holiday on a cc if I couldn't afford to pay it off straightaway. I've seen too many people get in a mess doing this.

I put everything on a 0 % credit card, even the weekly shop.

I put the holiday on a credit card for the protection - but I have the full amount in cash ready to pay it off when the statement comes in.

This is what we do, and then the points pay for the holidays.

I mentioned this on a Mumsnet thread once though and people were absolutely horrified.

We put everything on a credit card, but we pay it off every month.
The reason we use it is for protection and we have one where we get points, which we use for family days out. Saves us a fortune.
We always pay it at the end of the month as interest fees are ridiculous.
I've never put a holiday on there that we can't pay for at the end of that month.

I never make purchases on a credit card that I can't pay off the next month. Too much of a slippery slope.

What if you were to be made redundant, or fell ill and couldn't afford the payments?

i paid last years up front but that’s because we booked last minute and I had the money saved ready. I don’t like booking last minute though, you don’t Get as good a deal.

I’ve booked next years holiday this week and have just paid the deposit up front. Will pay the rest off with the monthly payment plan they offer. Too tempting with a credit card to not pay it off each month as intended if other things crop up.

I save up, put it on CC for the consumer protection and then use savings to pay it off in full.

So long as you are on 0% then yes!

Good for you OP. Life is far too short and can end in a split second. Enjoy the here and now. But do make sure the card you use gives loyalty points!

At the risk of sounding prissy, we built up savings, and save for holidays on top of that. Being honest, it’s less about good financial planning and more about the crippling anxiety that comes from not having a safety net against bad times.

We use the credit card to pay for the holiday, but it’s comfortably in budget. When it wasn’t we cut our cloth. I’ve been poor, and I’ve made financial messes and no holiday is worth it to me.

I’m envious of your mindset though.