Do you save first, then travel, or travel and go into debt?
Jun 16th, 2005, 06:55 PM
#61
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FWIW, inspite of most of the postings talking of 10,000 "average" debts and the plight of individuals in over their heads to the point of bankruptcy, www.msn.com has a financial area on which there are pages discussing the way Americans use CCs. The specific page is http://moneycentral.msn.com/content/...rts/P74808.asp According to that, a large segment that have CCs don't have a balance, the ones that do have it at a minimal level. The percentage of people with high debt loads is very small, in the 4% range. Only 1% have truly frightening debt loads. So, you can believe that. It's on the Internet, it's got to be true! 
Jun 16th, 2005, 08:11 PM
#62
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All in all, I would reiterate that it's probably best to shop like the dickens for airfares and hotel accomodations, and pay off those before your departure date, so as not to be paying interest charges on same. Then, clear up shopping and dining charges as soon as possible after returning home...so as you can be planning your next trip, without wallowing in debt for your excursions...
"Carrying Debt" is expensive, and reduces your future possibilities...
"Carrying Debt" is expensive, and reduces your future possibilities...
Jun 16th, 2005, 09:00 PM
#63
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Interesting thread that I have never seen before. I pay my CC balances in full every month. I have never paid intrest to a CC CO. Also I have 4 CC cards and I do not pay an annual fee. I refuse to.
The CC I use all the time gives me FF miles.
I have always paid cash for any auto I have purchased. The only interest that I have ever paid is mortgage interest.
I agree that seeing someone use their CC does not mean they are in debt. I use my FF CC for everything including utility bills. I get the FF miles and it cost me nothing.
The only way to be relaxed and to feel "free" is to not have debts. Just MHO.
The CC I use all the time gives me FF miles.
I have always paid cash for any auto I have purchased. The only interest that I have ever paid is mortgage interest.
I agree that seeing someone use their CC does not mean they are in debt. I use my FF CC for everything including utility bills. I get the FF miles and it cost me nothing.
The only way to be relaxed and to feel "free" is to not have debts. Just MHO.
Jun 16th, 2005, 09:37 PM
#64
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A previous poster mentioned Dave Ramsey. Listening to him set my family debt-free! As a result: no mortgage or monthly payments of ANYTHING except utilities.
So...cash is in the bank for my trips. I will be leaving July 1st for 3 major trips: New York City, Vegas, 2-week road trip in Arizona/New Mexico and then a 2-week cross country motorcycle trip.
All of this paid for with cash because of listening & following Dave Ramsey's advice. This is not bragging, it's rejoicing. If my family can do it, anybody can do it.
So...cash is in the bank for my trips. I will be leaving July 1st for 3 major trips: New York City, Vegas, 2-week road trip in Arizona/New Mexico and then a 2-week cross country motorcycle trip.
All of this paid for with cash because of listening & following Dave Ramsey's advice. This is not bragging, it's rejoicing. If my family can do it, anybody can do it.
Jun 18th, 2007, 06:05 AM
#66
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We typically pay for things like hotel and airfare using an American Express that is paid in full at the end of the month. For trips that are more expensive like when we visited Europe 2 years ago. I try to space out what I use the CC for- one month hotel, another month airfare, etc. We do try to save money though so we can pay as much in cash as possible . In the end, there may be a few things on credit card such as any shopping that we do.
Jun 18th, 2007, 09:49 AM
#68
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First, to clarify an earlier comment about liability with ATM cards with Visa or MC logos, check this: http://tinyurl.com/2pd6xk
Basically, if you report the card missing BEFORE any unauthorized charges have been made, you are not liable for anything.
If you report it missing within 2 days of a fraudulent transaction, you are only liable for up to $50 (same as a regular credit card).
Anything after 2 days, you're pretty much screwed.
As for funding my travels, I save first. I find that it's easier for me to plan my trip knowing how much I can spend, than the other way around. Some years, I have to use the money on something else and skip going on a trip that year.
Before the trip, I use my ATM card to reserve hotel rooms and to buy my airline tickets. I normally don't do "non-refundable" hotel stays - for me, I'd rather stay in a 3* hotel that I can cancel, then a 5* hotel that I can't (i.e., via priceline).
During the trip, I withdraw cash with my ATM at regular intervals and supplement it with using the ATM to purchase things. For the rental car, I reserve with my credit card, and if able to, pay with my ATM card at the end. If not, then as soon as I get home (whether it's due or not), I pay for the rental car with my leftover funds from the trip.
I don't have a lot of money, so I really have to keep to a budget when I travel. I've found that it's just easier to see my balance using the ATM card than it is using the credit card. I also know if I've "beaten" my budget and have a little extra to splurge with.
Basically, if you report the card missing BEFORE any unauthorized charges have been made, you are not liable for anything.
If you report it missing within 2 days of a fraudulent transaction, you are only liable for up to $50 (same as a regular credit card).
Anything after 2 days, you're pretty much screwed.
As for funding my travels, I save first. I find that it's easier for me to plan my trip knowing how much I can spend, than the other way around. Some years, I have to use the money on something else and skip going on a trip that year.
Before the trip, I use my ATM card to reserve hotel rooms and to buy my airline tickets. I normally don't do "non-refundable" hotel stays - for me, I'd rather stay in a 3* hotel that I can cancel, then a 5* hotel that I can't (i.e., via priceline).
During the trip, I withdraw cash with my ATM at regular intervals and supplement it with using the ATM to purchase things. For the rental car, I reserve with my credit card, and if able to, pay with my ATM card at the end. If not, then as soon as I get home (whether it's due or not), I pay for the rental car with my leftover funds from the trip.
I don't have a lot of money, so I really have to keep to a budget when I travel. I've found that it's just easier to see my balance using the ATM card than it is using the credit card. I also know if I've "beaten" my budget and have a little extra to splurge with.
Jun 18th, 2007, 01:52 PM
#69
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Travel is a huge priority for my family and we consider it a basic expense. Thus, we economize everywhere we can in order to afford travel. This meant a smaller house, used cars and used furniture. By doing this we easily have enough left over to pay for several vacations a year.
Also, we use credit cards for frequent flyer miles and always pay the balance in full each month. Frequent flyer miles are a godsend for us and have provided us with free tickets to Europe, Borneo, and South America.
Thus if travel is a priority to you, then treat it like a normal expense. By buying a house thats 50K cheaper than you would've you can free up 300-400 per month for travel!
Also, we use credit cards for frequent flyer miles and always pay the balance in full each month. Frequent flyer miles are a godsend for us and have provided us with free tickets to Europe, Borneo, and South America.
Thus if travel is a priority to you, then treat it like a normal expense. By buying a house thats 50K cheaper than you would've you can free up 300-400 per month for travel!
Jun 19th, 2007, 10:57 AM
#72
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Wow..a trip down memory lane with all the users who posted! I remember this thread when it started so I'm surprised I never posted.
We have always saved up for the vacation before we took it.
Utahtea
We have always saved up for the vacation before we took it.
Utahtea
Feb 9th, 2009, 07:33 AM
#74
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As I was reading this I, like Debbie Allen, was wondering if people had changed their views.
We always charge on a credit card but know that we have the money to pay the bill when it comes. We use a card that gives you rewards or points that way we get free hotels, airfare, cruises, etc.
We always charge on a credit card but know that we have the money to pay the bill when it comes. We use a card that gives you rewards or points that way we get free hotels, airfare, cruises, etc.
Feb 9th, 2009, 09:17 PM
#78
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Congrats on paying off your house Kal.
I save first for travel but then I save first for every big purchase. It gives me time to think about it, really know if I want it, will I use it and most important when the price will drop.
Actually, I do this for most purchases, even if they’re not huge. I've been looking at I-pods vs. MP-3 players for months now.
I save first for travel but then I save first for every big purchase. It gives me time to think about it, really know if I want it, will I use it and most important when the price will drop.
Actually, I do this for most purchases, even if they’re not huge. I've been looking at I-pods vs. MP-3 players for months now.
Feb 10th, 2009, 07:11 AM
#79
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We pretty much only use our CC for emergencies, but we do buy flights with the CC. We have to fly to visit my husband's family. We've always been able to pay it off within a month or two, but we're coming into some more difficult financial times, and it's not going to be very easy to buy flights. So I'm stressed because I don't want to say he can't go visit his family, but I am dead against credit card debt. Driving would be tough--we have an 8-month-old baby and the drive is about 22 hours.
