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Original poster

34 crisis - but am I being irresponsible?

97 replies

Timeout3 · 03/01/2019 10:17

7k credit card debt, none of which incurs interest for well beyond a year.

I’ve bought a house, have a car. I pay more than the minimum payments on credit card. If I haven’t cleared it all by the end of the interest free then I will do a balance transfer.

I want to go on a trip. I’ve done very little with my life when I look back - lots of box ticking (good job, bought a house, own my car etc). I’ve never really DONE anything though. And I’m panicking about it a bit.

I’ve considered spending some savings on a trip. It will leave me with only a grand to my name (technically in debt as I will still have the credit cards). I save a little each month, maybe 200-250.

Would you do the trip? Is it irresponsible? I’m so conflicted but at the moment feel like I’ve always been working to exist rather than live.

OP posts:
recently · 03/01/2019 10:18

It depends on the cost of the trip really!

LaughingCow99 · 03/01/2019 10:20

Personally, I wouldn't till I was in a better financial position. How quickly can you clear your debt? That would be priority for me.

I wouldn't enjoy a trip knowing the debt I left behind, but I'm sure others would be ok with that.

hellsbellsmelons · 03/01/2019 10:22

How much is the trip?
How long is the trip?

Podemos · 03/01/2019 10:28

I would. You own a house. You seem to have a good job that allows you to manage the debt and save some each month.

ravenmum · 03/01/2019 10:28

7k of debt but you have savings? How does that work? If you have more than 7k of savings then you have no debt; if you have less than 7k of savings then you have no savings.

Sell the car (if you really do own it) and use money that is yours to travel.

Original poster
Timeout3 · 03/01/2019 10:30

Trip is about 3k all in with food and spending money. 2.5 weeks.

I’m conflicted. I could put the 3k on the credit card but as it’s interest free I never have. But that’s how they get you isn’t it! Haha. If I continue paying off as I have then I will have about 4.5 k remaining for a balance transfer in a year and a half.

OP posts:
Original poster
Timeout3 · 03/01/2019 10:32

I’ve kept savings as the credit card isn’t costing me anything at the moment and I pay above the minimum.

Yes the car is mine but I need it so can’t sell it.

It was a struggle to buy the house and I saved and saved in order to do so. During that time most friends went travelling etc and I didn’t. We made different choices but now I am feeling like I haven’t done much with life...

OP posts:
ravenmum · 03/01/2019 10:33

Sell the car, go on a working holiday, volunteer in Africa, or look for a job abroad...

MynameisJune · 03/01/2019 10:34

2.5 weeks is a holiday really not a life changing achievement. Do you think it will really make you feel any better or will you come home and realise you’re 3k down and still haven’t ‘done’ anything.

I’ve put done in quotations because to many people getting a house and a good job is in itself a life achievement.

NanooCov · 03/01/2019 10:36

How long have you had your house and how much equity do you have in it? Mortgage rates still low currently so you could possibly take additional borrowings secured against the house and pay off the credit card debt and have enough funds for the holiday? Depends what your LTV is really and how long you've had the mortgage.

ravenmum · 03/01/2019 10:37

Cross-posted re the car. Maybe let out the house / put it on airbnb instead.

Sorry, still don't understand how you can have both savings and debt at once! One cancels out the other.

Original poster
Timeout3 · 03/01/2019 10:40

Well because the credit card is debt and the money in the account is savings. If we looked at the entirety of my borrowings I would be in debt anyway because of the mortgage surely...

Though I get your point. I’ve onky ever had up to 5k savings since buying the house as I’ve had to furnish it etc.

I think the trip would make me feel I had ‘done’ something. I’ve never been this far before and so it’s a big deal to me. I would never leave my career as I love it so won’t be travelling for months at a time.

OP posts:
Original poster
Timeout3 · 03/01/2019 10:41

Re the mortgage, I have more than 25% equity but having considered borrowing money from the house I didn’t think that was wise at this stage really. I know 7k is a lot on on a credit card but it is currently manageable and I have no other loans.

OP posts:
GodknowsIwanttobreakfree · 03/01/2019 10:44

I thought you meant to go travelling not a fortnight’s holiday. Is there a reason why you have to do it now?

Original poster
Timeout3 · 03/01/2019 10:45

I’m just feeling a bit like there’s not much point to things. Job is quite hard and I would like to do something I haven’t before. Maybe it’s silly I don’t know.

OP posts:
Original poster
Timeout3 · 03/01/2019 10:45

I mean job is hard but I do love it... just want wider experiences!

OP posts:
Original poster
Timeout3 · 03/01/2019 10:47

Just checked it’s 6k not 7 actually

OP posts:
HairyDogsFeet · 03/01/2019 10:48

Don’t take in additional mortgage to go on holiday- that is ridiculous as over 25 years it will cost a fortune.

I wouldn’t rely on being able to get a cheap balance transfer (these may have no interest but you pay x% at the start, so not free). Last time the economy collapsed in 2008ish these became much harder to get and rates rose.

If you have savings then use these to go on holiday.

Advice offered by someone who used to have over £100,000 on low rate credit card cash withdrawals (built a house). It becomes a way of life, we had these loans rolling (never at more than 2.9% upfront for interest free over 2-4 years) for almost 30 years. It can be a cheap way (less than a mortgage or car loan typically) to borrow but with hindsight it becomes a way of life.

GreenTulips · 03/01/2019 10:49

3K is a lot for two weeks holiday - how special is it?

In comparison we paid £5K for 2 weeks in Florida 2 adults 3 kids

Go on SPICE - a friendship group - they do loads of weekends away for peanuts - and trips abroad and sky diving meals out - one of my relatives is never home!!

mindutopia · 03/01/2019 10:50

No, I wouldn’t unless you could AirBnB your house and it would pay for the trip. Travel is great but 2.5 weeks isn’t life changing. If you wanted to go off for 6 months of travelling, that would be one thing. But 2 weeks is just a holiday and isn’t worth being more in debt. Pay off your debt and go next year, AirBnB your house, get a second job, etc.

Tiredismymiddlename85 · 03/01/2019 10:51

Pay off your credit card with your savings. Get rid of that debt!

MynameisJune · 03/01/2019 10:52

If you want to go on holiday then go but don’t fool yourself into thinking it will make you feel like you’ve achieved something. Sorry but it’s a holiday not a life affirming journey.

I think 3k for a single person for 2 weeks is a lot. If you were taking a month off and travelling around then maybe that would seem worth it but I just can’t see it changing how you feel.

Timeforabiscuit · 03/01/2019 10:53

Do you want to escape from something?

I only ask as you sound more disatisfied with what you have and comparing with others.

Many of my friends went travelling, while myself and dh seemed perpetually stuck in low paid jobs, got pregnant a bit too soon, bought a crappy house with damp, drove a third hand car which we used to pray would scrape through an mot without costing a mortgage payment to fix, nursing a permanent overdraft or credit card debt (depending on the 0%).

It was fucking grim, but of the friends who went away years later - they are all in much the same jobs, nursing a metric fuckton of debt still, on top of a biiiig mortgage - to me that sounds immensely stressful, but to them perhaps its worth it?

I suppose I'm asking are you doing this because you want things to be different when you get back? Or because you want/need a break?

lubeybooby · 03/01/2019 10:53

Stop umming and ahhing and do it. You're much more responsible and better off than a vast proportion of the population and a little interest isn't a disaster if it came to it. Go and have some fun!

lostinjapan · 03/01/2019 10:58

I wouldn't do it. £3000 on a fortnight's holiday, then when you get home you're back to where you started (minus the bulk of your savings). An expensive holiday won't fix your problems, it will just add a whole lot more stress and worry.

If your savings are burning a hole in your pocket, then use them to pay off half of your credit card debt.