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

Personally no I wouldn’t do this. Whether it’s normal or not i’m not sure

You should always use your credit card to pay as you get insurance with it personally I pay my card off every month as i dont like to have any debt

True.

I would also like to be taken everywhere in a Ferrari driven by a handsome chauffeur

I'll stick that on the credit card as well

I save up first rather than use credit to pay for holiday.

We tend to book at an appropriate time on CC, then pay when DH gets his bonus in spring. It's a guaranteed bonus and has been our system for years.

Everything goes on a credit card here and I'll pay it off over time. I do always have a healthy amount in savings though, so I could clear it if necessary.

Exactly! The price of staycations absolutely skyrocketed during Covid, and like everything else, they have not gone back to a more reasonable rate.

I hate debt so have never bought things on credit (save the mortgage) . We use a credit card to buy things for the protection but pay it off the same month.

No, I wouldn't borrow to go on holiday, it's neither an essential purchase nor an unexpected one. Of course, I put everything on CC, but I pay it off immediately.

I put it on a credit card but I always pay the balance off every month, not the minimal amount.
I do it for the protection element rather than financially.

With UK holidays I think the issue can be unpredictability.

You may very well get a cheapo one, especially when the weather is kind. If you're close to a beach and book somewhere with a free pool and good playground, for some kids that's your whole break sorted. Plus it's not like holidays abroad haven't got dearer either.

However, you always need that contingency. It usually doesn't rain for the whole time, summer 2023 notwithstanding. But it does sometimes. It's a possibility that has to be prepared for, and that's harder to budget.

I put it on a credit card for the Avios but pay it off straight away

I use my credit card to book ferries, trains, hotels, pay for holiday spends etc but I pay it all back within the month (from money I save before booking/going) as opposed to over a longer period, so in that regard what you describe isn't normal to me. It's possibly quite normal for some folk though.

Yes, I always do a balance transfer and pay it off over the term of the interest free contract.

I always pay on a CC because mine give me travel insurance. Only if I have the money, will we go on holiday. I keep the money in separate savings, use a 0% card, and pay it down monthly. I’d rather have the money making interest for me than hand it over in one go.

Well, yes, and some people don’t want to drive old cars, or not have a hot tub. People don’t want to go without fine dining or champagne at the weekend, but that’s life!

UK weather is unpredictable, yes. Some UK holidays have been glorious and others washouts. But that doesn’t mean we can afford a holiday abroad.

If you can’t afford a holiday abroad, without putting yourself in debt, then you’ll have to accept the poorer weather. We ALL have to negotiate life with and without certain things due to budget, that’s normal.

We increasingly life in a society where debt is seen as normal which I think is quite worrying and damaging to many long term.

I put a once in a life time type holiday on a credit card which I'm still paying back (0% interest). Not ideal but it was to see friends who live abroad and it was the most convenient year to go and I wasn't able to save enough in the time I had before going.

In 2020 I promised myself I would never let money be the reason I couldn't do something after learning how easy it was for our freedom to be taken away.

I usually book a holiday on a credit card for the added protection and Avios points but I pay it off in full that month. I wouldn't book a holiday I couldn't afford to pay for outright.

Surely it's better to get a bank loan with less interest ?

Less than 0%?

I put it on my credit card for protection but pay it up off that month. If we can't afford to pay for a holiday and don't go.

I always pay for big purchases on credit card - as long as we know we can afford it and ideally repay straight away. Credit cards come with extra protections and it makes sense to spread the cost on a 0% card than use savings that are earning interest.

The problem with paying for an annual holiday on Credit card that you take most of the year to pay off is that you are always in holiday debt. Although the risk of your income disappearing in any one year is low, its pretty likely that eventually there will be a year when the car breaks down expensively, a major house is need or you lose your job. By always being close to the wire on nice to haves, these things are much more catastrophic.

It is quite normal, but doesn't mean it's a good idea to buy a holiday on credit with money you don't have. What if something else goes wrong - with cars, house etc. Then you have to find money for both.

We have a bank account for holidays & auto transfer money each week. That way there's no debt & we're just 'paying it off' before booking & know what we can afford.