To ask how you’d pay for this holiday

[holidaaaays]

The only available time off work we have this year to holiday with is the end of April. In August we’ll have the funds to cover the holiday, and some, but obviously to holiday in August it would be x3 the price and DH cant get a week off later in the year. We have a credit card but use it infrequently and pay off in full at every statement whenever we do. It’s not a 0% one and unsure of the rate as we rarely ever use credit. I don’t actually understand what minimum payment means as I’d always pay full balance.

With it being so last minute there’s some fab holiday deals but of course it’s too late in the day for the usual Jet2/TUI pay monthly type, you’ve got to pay in full now. I don’t want to take money out of savings for it and it is our only opportunity to go away this year.

How could we do this without paying back any interest? Would it be possible to pay for it with credit card, then get a 0% card and transfer the balance so we can pay it off over 5 months?

Of you can't get a 0% credit card, I would just take the money out of savings and be sure to put it back

Could you get a 0% credit card now and pay for it using that?

I applied earlier but I can only use Apple Pay till it comes in the post which the holiday company obvs don’t accept. I am not sure if it will be fully booked by the time it arrives late next week/week after.

You can put it on a normal credit card and then pay a balance transfer fee of anywhere from 2% to 10% (so shop around) to have it on interest free for a year or two.

Just make sure that both credits cards aren’t from the same bank (for instance you might have a NatWest card and a Sainsbury’s bank 0% card but you wouldn’t be able to transfer between as they are both NatWest).

I'd take it out of savings and pay it back monthly.

Take it out of savings and set up DD to repay. The lost interest on your savings (3-4%?) will be tiny compared to your credit card interest (18-25%?). Obvs I'm making up the numbers but you get my drift.

The sensible thing to do would be to use the savings and pay it back in when your August windfall arrives.

I think you might want to explain why that’s not an option as it’s the “obvious “ solution?

Who do you pay the balance transfer fee to, the 0% one?

I would just use the savings and pay it back in monthly. Would you be using ALL of the savings?

Pay part with a credit card so you get the credit card protection and then pay the rest from the savings account and then replenish your savings in August.

Most of the easily accessible ones.

My credit card with NatWest has the option to spread purchases over £100 over 3, 6 or 12 months at a pre-agreed and lower interest rate, usually about 10% APR, does yours have something similar?

To put it in perspective, a £1000 holiday purchased as 10% APR, repaid in full over 5 months would cost about £1045.

The other option, other than waiting 5-days or so for your new card to come, is a balance transfer card with eg a 3% fee and then 0% interest for (at least) 5 months. Tbh it's quite a faff imo for the amounts involved unless you're looking at a £10k holiday.

How much do you have in savings? Unless you have the cost of the holiday over and above a 3 month emergency fund I wouldn’t be going.

I’m in a similar position - I’m trying to find extra work (evenings and weekends)but it would need to be work from home and there’s not much out there!

If I couldn’t afford a holiday, I honestly wouldn’t take one. I’ve never put travel on a payment plan or a credit card. We are financially comfortable, but we don’t have a big holiday every year if the logistics don’t work out or we can’t justify the cost. I know it’s a thing people splash out for, but I just wouldn’t personally. It would be different if the money was just sitting in savings and I didn’t see needing it for anything major.

I wouldn't have a holiday I couldn't afford to pay for at the time. However I am very risk averse and will not go into debt for anything that isn't strictly necessay, having been in the situation where my very not D XH has lost his job and we have been in the poo financially.

Then my answer is no…

I wouldn't go on a holiday I couldn't afford to pay for outright at the point of purchase. Your "deal" is much less of one if you pay for it on credit.

We’ve booked with Jet 2 and are paying monthly towards it. Makes sense to keep funds earning interest in our savings account and just pay off from our monthly pay.

Do you have a healthy amount of savings? if not, I wouldn't go if you struggle to pay.

i personally would just not go on holiday this year.

If I didn’t have enough savings to comfortably cover the holiday now, I wouldn’t go. I would choose a cheaper way to enjoy the week. Even if you just stay in your house and play tourist in your own city, you can have fun.

Yep

Change to a new 0pc interest card, look at the longest term deals. Xxx

I always put my annual holiday on 0% purchases CC. You get the protection, plus it doesn’t cost you anything until the 0% ends. Then I save all year in a 7% interest account and use that to pay the credit card off at the end of the 0% rate. So I get interest in my savings. There are a couple of long 0% purchases CC’s out there at the moment. 21 or 23 months.