To book a holiday with savings over paying off debt?

[GretaGarboandMonroe]

Situation is : £3k savings but £3k debt. Shall I clear the debt with the savings or stick to the monthly payments over the next year and go on holiday with the savings? DH in desperate need of a break as very stressed and overworked. But it would feel amazing to clear the annoying debt. Help me decide please!

Depends on your income. Got for a cheaper holiday and pay off some debt.

It depends what's causing you/him the most stress; being in debt or whatever it is he needs a break from.

Plenty of people pay off debt every month and 3k isn't a massive amount, assuming you can afford the repayments...if you can, go for the holiday.

This.

imo it’s madness to spend when you have debt, even my mortgage got paid off as fast as possible.

be kind to your future self and don’t leave them debts. Leave them in a good financial situation.

I'd struggle to justify spending that much on a holiday when that debt is sat there.

How much could you pay off the debt each month?

I'd go for meeting in the middle - you can have a decent holiday for £1k. Put £2k towards the debt and then pay off the rest ASAP after that.

I would personally book and enjoy the holiday if I was comfortably paying off the debt or even better I would spend half on a holiday and pay off half of the debt.

Holidays are a luxury, the priory should be debt clearance.

He can have a break at home. Just book the time off work and do things locally. Pay off the debt. £3000 is a huge amount to spend on a holiday anyway, particularly when you can't afford it.

@GretaGarboandMonroethe answer on MN is always to pay off or reduce debt. Me? I say life's too short. If you can comfortably manage the debt payments, go on holiday and enjoy yourself. Plan for the future by all means, but not at the expense of enjoying at least a bit of life.

I’m with @Justlovedogs
i have two friends in recent years (in their 50s)
and had two (thankfully benign) cancer scares

no one dies glad that they’re debt free
i I couldn’t give two shits if there’s £10k on my credit card when I die

what I do care about is spending time with family and friends, visiting amazing places and making the most of this one short precious life

fuck the debt and enjoy the hols

*lost

The answer depends a bit on the interest rate you are paying. If paying it off now would save you money in the long term, then definitely pay it off, or at least most of it off as that will improve stress over the long term.

If your husband needs a break from work, he can take annual leave and just do nice things you wouldn’t normally do but that won’t cost £3k. Get a take away every night, go to the cinema in the afternoon, take naps, have a day by the sea etc etc. You don’t have to go abroad or even away to have a break from work stress.

I could enjoy a holiday in any situation, with any amount of debt. I say go on the holiday.

Clear the debt, then save for a holiday

clear the debt. A break doesn’t need to be a holiday.

I think mental health is the most important thing and I would put some toward a holiday, not all though. I would go 50% at most. What would he find the most relaxing? Staying home? Having a UK break or a trip abroad?

Flights wise you can look at all flights leaving your local airport and it will show you the costs so instead of Paris there are other flights into France that are so much cheaper, same for Spain etc. Go onto Google flights, choose your airport and click into the map for all the destinations.

You have managed to save to pay debt so you can do it again.

Having savings when you have debt is stupid unless it’s interest free.

Holidays are not a right - they are an extra, a treat, when you can afford them. You clearly cannot afford a holiday. You need to get your finances sorted out and get your situation on an even keel. You and DH can time off work and relax together - go for walks, go to the park or go to the seaside.

Whatever you do you must keep some savings because when your boiler packs up/ tyres need replacing/ lose your job you have to have a cushion.

sorry, stick to the program and get your DH to take time off work and have some cheap or free fun at home or whatever options you have.

Pay off the debt and have a staycation. Turn off his phone. Ban him from email.

It looks like it's going to be a fine summer so enjoy some sunshine locally, garden or park/countryside. Packed lunches and hiking, drinks in pub gardens, tennis or crazy golf in the park. Early morning trips to the coast for breakfast.

Being debt free feels brilliant.

Or join trusted housesitters and enjoy a free holiday in someone else’s house looking after their pet.

Clear the debt.

I would certainly use some of those savings to pay off as much as the debt as I could,
but I’d also be looking at a cheap holiday (ie not in the school summer break). So, maybe allow yourselves up to £1000 on the holiday (all in) and pay £2000 off the debt.

I'd clear £2700 of the debt and then spend £300 going on a night in a nice spa hotel with dinner.

being debt free does much more for my mental health day in day out than any holiday could ever do. Sure you might die soon but you are much more likely to live. Work out how much that debt is actually costing over the lifetime of the debt may be the steeper you need

Thanks everyone for your input!

To clarify to the poster who said savings while having debt is stupid, the savings have been built over a very short amount of time due to extra work.

I think the best bet for us is a compromise. 2k on the debt, then 1k on a short break. There are opportunities for us to replenish the savings over the coming months, so all good.