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Original poster

Going on holiday whilst in debt

60 replies

Turkytwizla · 29/12/2023 20:05

Do you think it’s ok to ho on holiday whilst being in debt. I’m not talking about extreme ‘we’re gonna lose the house’ debt. I’m talking about having some manageable debt that you’re just paying off monthly.

would you still go on holiday if you had outstanding unsecured debt?

OP posts:
Raspberrypickles · 30/12/2023 08:44

mrsfollowill · 30/12/2023 01:13

I know someone who went on holiday and cancelled all their direct debits/standing orders to do it. I'm talking mortgage, council tax, gas and electric water rates everything- Mental! went away for 2 weeks then faced the music when they got home. This was maybe 20 years ago or longer but really?!

Wow, how would you enjoy it?

MrsMoastyToasty · 30/12/2023 08:44

A caravan in Clacton- yes. A 5 star hotel in the Seychelles- no.

BeingATwatItsABingThing · 30/12/2023 09:34

mrsfollowill · 30/12/2023 01:13

I know someone who went on holiday and cancelled all their direct debits/standing orders to do it. I'm talking mortgage, council tax, gas and electric water rates everything- Mental! went away for 2 weeks then faced the music when they got home. This was maybe 20 years ago or longer but really?!

This is stressing me out and it’s not even me! I mean, there’s living life to the fullest and then there’s just plain stupidity!

Heatherbell1978 · 30/12/2023 10:03

Of course. Debt doesn't need to have the stigma it seems to have on MN. But I always chuckle at the outrage it causes. It's all about managing it properly and within your own means and understanding of it. I work in debt (banking) and have always used it to my advantage. I remortgaged at a low rate early this year and now have 1000's sitting in high interest savings accounts. My mortgage will be repaid in 10 years via my pension which I'm hammering right now rather now overpaying the mortgage.

Anyway yes go on holiday!!

Waitingfordoggo · 30/12/2023 11:25

Mortgages are debts. I wonder how many of those saying they wouldn’t go on holiday if they had debt have a mortgage. The point is that a mortgage (for most people) is an acceptable, manageable, necessary debt. I don’t have a mortgage but I have a small student loan (3k). That’s a manageable debt with low interest rate and wouldn’t stop me going on a holiday.

Baxdream · 30/12/2023 11:30

I would and am next year. We are paying off debts and saving separately for the holiday. We spent hardly anything on Christmas to do it.
We haven't been away this year and I feel burnt out. I've been so poorly the last month I would rather take longer to pay off the debt.
Ours is from building work and all 0% rather than from a remortgage

BeingATwatItsABingThing · 30/12/2023 12:55

Waitingfordoggo · 30/12/2023 11:25

Mortgages are debts. I wonder how many of those saying they wouldn’t go on holiday if they had debt have a mortgage. The point is that a mortgage (for most people) is an acceptable, manageable, necessary debt. I don’t have a mortgage but I have a small student loan (3k). That’s a manageable debt with low interest rate and wouldn’t stop me going on a holiday.

Quite a few people have said it depends what kind of debt. Mortgages, student loans, etc. are considered part of your monthly outgoings usually. High interest bank loans, payday loans, credit cards, borrowing from family/friends… is not the same as a mortgage. Those are the sort you want to be clearing quickly before thinking about holidays.

Fairyliz · 30/12/2023 15:59

I actually find this a really strange thing to do. There is article after article about people building up debt. We have seen over the last year how the COL crisis has hit lots of people, yet a lot of this is self inflicted.
Instead of trying to build up some savings people already in debt are spending money on something not strictly necessary!
I have only ever been on holiday when I have the money to pay for it before I book. That means that some years we have not been able to go away; however it also means that I have never had to worry about paying essential bills.
Which would you prefer op?

Ponderingwindow · 30/12/2023 18:38

Student loans, mortgages, cars, and even some household goods often come with incredibly low interest rates and payments. The interest can be so low that paying off those debts is unwise because it makes more sense to keep your money earning for you.

using debt wisely as a money management tool is entirely different than using debt to pay for things that you can’t actually afford. If you can’t pay for a holiday in cash, you really can’t afford it. Just like when I buy a new sofa, I might buy it with debt because the store offers me a zero interest loan, but I still buy a sofa that I could afford to buy with cash right that moment. I just keep the cash in my pocket instead. I don’t count that as debt because I could pay it off whenever I wanted. I don’t do what the store wants by providing the offer, which is buy a more expensive sofa than I can actually afford.

HamBone · 30/12/2023 18:46

Student loans, mortgages, cars, and even some household goods often come with incredibly low interest rates and payments. The interest can be so low that paying off those debts is unwise because it makes more sense to keep your money earning for you.

@Ponderingwindow Exactly, that’s why my DH is paying off his student loan slowly as he can make more by investing or saving the money instead. As he’s never missed a payment, the interest rate on the loan is incredibly low.

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