Money?
 

We basically always use a Credit Card to pay for our vacations. I don't know if that's a good thing. You can easily get into debt this way. <BR>How many people use a Credit Card to pay for there vacations?

We use credit cards to pay for absolutely everything possible...even fast food when an option. <BR>Why? The frequent flyer miles. <BR>Drawbacks? There are none. We always pay off the total each month so only the annual fee is due as a 'penalty' for having the card. But getting 40,000-plus "free" FFM's per year is more than worth the annual fee!

We also use a credit card on vacations although we do carry some cash. Like the last poster, our credit cards are always paid in full each month. You also get a great accounting of what you spent so you can budget for your next vacation! We also get frequent flyer miles with the card!

Never use a credit card for anything, even travel. We use our debit cards now which can be used in place of credit cards when reserving rooms, etc. My husband and I love the fact that we have no debt but the mortgage. This way we are never tempted to buy anything that we can't pay for right then and there. My sister does as you do Bob and has gotten many perks with FF miles. I should look into this but old habits are hard to break.

One benefit that CC have that Debit cards don't have is the legal protection. You can dispute a CC charge and their are federal consumer protection laws that help you (really helpful with slimy rental car agencies). Debit cards do not get the same protection. If you are disciplined in your use of CC, they can be a big boon. But if you have trouble budgeting or controlling your spending, CC can get you into trouble.

Curious, if you have the discipline that I know you have from reading your posts, you should ABSOLUTELY ditch the debit cards in favor of credit cards. My latest credit card (we too pay them off in full each month) is a Shell Visa credit card. You get 5% for every dollar spent at a Shell station; 1% for purchases elsewhere. No annual fee. <BR> <BR>Frequent flier CCs are also good. My experience is that the ones linked to one specific airline aren't great. Sometimes another flight is more convenient, and my CC gives me FF miles even for flights taken using awards. Fewer black-out dates, and easier to get flights when you can go with any airline. <BR> <BR>Let's see. I also have a Borders' credit card, which gives me coupons for free books. I also once had a grocery store CC and a phone company CC, all of which sent me coupons to use. It was pretty neat to get a $40 coupon to send in and wipe out that month's phone bill. <BR> <BR>Why do I need so many credit cards? To better keep track of who in the household is spending what -- very useful for budgeting.

Love the credit cards.. Particulary the American Express for the ff miles. <BR>Use the gold card everywhere... Easy to earn those much anticipated travel miles!

We take one major destination vacation a year (other then a yearly trip to visit family and several long weekends) <BR> <BR>This is how we pay for it: We put away $100. every month, just for vacation, for approx 11 months before we leave so we will have money to apply towards our bill when we get back. <BR> <BR> We pay for ALL our purchases, including groceries, with a FF credit card. <BR> <BR>We pay for the first night deposit (with the FF card) months before we leave in order to hold our room, so some of our hotel bils are already paid for before we leave AND we always pay off our cards every month!

credit Cards R us, Pardon my ignorance on this subject but does that mean you get 5% or 1% off of the total of your CC bill or what? Also, when you get FF miles do you get a mile for every dollar spent? (Wish I thought of this when we redid our living room last year!). I'm one of those people who throws out all those CC solicitations in the mail without even opening them. Now I'm beginning to realize that I may be missing out on a good thing!

curious: <BR>Capital One and AmEx are two CC's I know of (my wife and I split them) which allow you to accumulate FF miles to be used on a wide variety of airlines...a mile per dollar spent. But there are some restrictions, fewer with Capital One, it seems, but AmEx offers some other great benefits that CO does not. <BR>Tried buying two cars with my AmEx but the dealers wouldn't allow it (max $4000). Could have had a pair of instant round trip tickets to Australia!

Thanks for the info Bob. My husband has Amex and mentioned that he thought he could do this for an $ 85 annual fee. Does that sound right? Does the Capitol one card require an additional fee? Nice try with the cars, Bob. Too bad they wouldn't let you put the whole cost on the card though!

Curious, If I buy a $1000 couch for the living room on my Shell card, I will get a coupon in the mail for $10 in free gas. Same for FF miles (1 mile per dollar). Annual fees vary, but obviously, if you spend a lot for regular living expenses or if you travel on business, you can plow a lot of money through the card and get lots of free stuff. Take note, however: some cards have annual or even monthly maximums, so you can't put your whole house remodel on one card and still get miles/coupons. But you sure can put it on several different cards. <BR> <BR>As for the solicitations, you can find out about these things in other ways. I found out about the Shell card through a site on the Internet that lists every affinity gasoline CC, and you can get a Visa card like that for pretty much every major gas company or airline. Two of my cards are First USA (FF and Borders); the other two are Chase (Verizon and Shell). <BR> <BR>Start a thread, and I'm sure some more Fodorites will get you started.

Curious, you can do better than $85 a year. I pay the following annual fees: <BR> <BR>Shell - nothing the first year, $15 after. <BR> <BR>Verizon -- no fee. <BR> <BR>FF -- Value Miles program. $45/year (we use this for all household expenses, and the free tickets compensate for the high fee) <BR> <BR>Borders -- no fee. <BR> <BR>Used to have United Mileage Plus Visa, but the fee went up to $60, so we dropped it. Local supermarket Visa card (Giant) was with no annual fee, but they dropped the discount, so we dropped the card. <BR> <BR>As you can see, the issuer will wise up and start charging a fee or eliminate or reduce the benefit. That's when I cancel that one and migrate to something more lucrative.

Perhaps this advanatge is less important now than when people took wads of cash and travellers check to foreign countries, but with a CC you obviously enjoy the current international rate of exchange when the transaction is porcessed ... of course, some foreign firms wait until the rate is more favorable to them, and less so to you. The same holds true for an ATM card, but the advantage can be dillited if banks charge large service fees. Having a CC or ATM gives you more safety and more leasure time (you're not out walkinh the streets kcomparing rates of exchanges at vaious exchange windows). Ciao

I'm w/Curious on this one. It's too easy to say "we'll pay it back (and worry about it) later" using credit cards. We travel with our debit card now - it makes us stick to our budget and is just as easy to use as a credit card. <BR> <BR>And forget fees - doesn't anyone worry or think about interest rates? I don't pay fees (or get FF miles either) on my credit card - I save money instead paying only 5.99% on my charging - makes it easier to put a tidy sum into the ole "vacation account" every month.....

But Linda, that's the point. Those of us who pay off our cards each month pay no interest at all, so the rate doesn't matter. We get free stuff for using the cards that you don't get, and we don't risk that someone will wipe out every penny in our bank accounts. If someone uses the card without our authorization or doesn't provide the promised goods, we can dispute the charge. Also, if you miscalculate with a debit card, you can run up huge bad check charges before you realize your mistake. <BR> <BR>You might wish to try a credit card if you are sure you can be disciplined. You can get a limit of as low as $500, if you're really worried about it.

Credit: Yeah, I see where you're coming from - I guess I'm speaking for all of us out there that aren't disciplined enough (or always able) to pay off the cc bill in full every month. So a lower interest rate (w/no extra benefits) makes sense for us, as does using a debit card for major expenditures such as vacations. Then I don't have to worry about my "budget-discipline issues"..... <BR> <BR>Used to have to mess w/traveler's checks every vacation - thank God for debit cards!

Linda, <BR>Why don't you try using a debit card just like you would a credit card. I mean to subtract the transaction out of your check book balance each time you use it. That way, you will have the money to pay it off when the bill comes due. Plus you're get the freebies we've all been talking about.

Wow... <BR>I take my hats off to you travelers who are very disciplined individuals.. How do you do it? I don't want to begin to tell you how many MAJOR credit cards I have? 8-10 maybe?? Couple American Express, Visa, Master Card, Discover, you name it. I do use 1 card quite ofter for frequent flyer miles.. Northwest Visa..How do you all do it.. They are so easy to whip out and use.. <BR>I guess I'm one of the few that needs to discipline myself before its too late!! ( I LOVE to travel though)

Oh, it's easy, Mr. Credit man. Before I buy something, I ask myself the same question: "Don't you already have enough crap in your house, and where are you going to put this piece of crap?" Works every time.

For Mr. Credit man, I only have one credit card. Don't need more than one. Figure out which one is best for you (FF miles, gas coupons, cash back, low interest rate, etc) and cancel the others. <BR> <BR>Like debt free, think long and hard before using. Write down all the money coming in (salaries, investment dividends, alimony, etc) and all the expenses (mortgage, utilities, food, etc.) what ever is the difference is the amount you can spend. No more, always less for me. <BR> <BR>You can live a wonderful life without a lot of junk.

I should mention that I put every purchase possible on the credit card, and then pay it off at the end of the month? Why? Because I review each bill and tally up the charges that were avoidable and a big old waste of money. That helps strengthen me for the next month. <BR> <BR>If you pay cash for things, all you know is that your money is gone, and you'll have no idea where it went.

I guess it's easier to whip out a credit card (free money) so we think? <BR>But you'll be paying the price later.. <BR>I need the strive and stamina you all have. We have no kids, so that's more money... We are middle class people who love to do things, travel etc.. I guess you have to put priorities in perspective.

Hey I'm jealous of those who are debt-free!! <BR>My motto is CHARGE!!! <BR>I'll charge a vacation faster than you blink an eye! Remember, you only live once!!! So you might as well live up to the fullest, you never know what tomorrow may hold?

I would rather use a credit card or traveler's checks from a safety standpoint. If someone finds or steals your debit card, they can wipe out your account, no PIN number necessary. I can put a stop to a stolen or lost credit card. Also I can replace traveler's checks. Just pay off your credit card ASAP.

Good point about debit cards, that's why I don't use them. A little harder to dispute a charge when it's already been taken out of your checking account. <BR> <BR>Ever heard of Quicken Visa? Everything you charge can be downloaded onto the Quicken software credit card account on your computer. You can create an itimized chart of your spending, just have to categorize the charges as they come in - good way to see how much you spend on airfare, lodging, food, etc. <BR> <BR>Another nice feature of that card is "Travelermiles." For every $8000 you charge they send you a $100 airfare voucher - you just call Travelermiles and they book your flight and apply the $100 credit toward the total airfare - I just find the flights and fares I want on an airline's website, then tell travelermiles what I want. There is a yearly fee for the service, and a $15 fee each time you book airfare, but overall you still save some money.

Sue, read your post and fireworks are going off in my brain!!!(and boy, am I feeling kinda stupid). The idea is brilliant in it's simplicity: use my credit card like a debit card (which is what you meant to say, I know). I could keep a "checkbook register" and record my expenditures just as I would for my debit card - when my vacation "fund" is gone I quit spending on it. I love it! Am gonna start researching soon for a separate "vacation fund" credit card with FF miles benefits..... <BR> <BR>Too bad it's too late for me to use this idea this year - we leave in 3 weeks for our FIRST EVER TRIP TO HAWAII ! (oh, will August 26th never get here?.....) Decided 2 years ago we should take a "25th wedding anniversary trip of a lifetime" this year - opened up a separate savings account and been very disciplined about putting as much as possible in it every month. It's the only way we could afford a grand trip like this w/out going into debt. Would recommend a separate "vacation fund" savings account to everyone out there like us who say they "really can't afford to travel".....

Hey, <BR>Come on folks..... You mean to tell me you all REALLY pay off these traveling debts right after vacation? I can't believe it!!!! You mean to tell me, if your vacation totals lets say $5,000 all together including spending money, souviners, dining out, etc.... You pay off the charge right after? That's good discipline or I'm just plain broke? <BR>Especially if you use the American Exp. card. Monies is due right away, unless you use your Sign & Travel portion. Am I missing something here?

Well, what you're missing could be that I wouldn't take a $5000 vacation unless I had the money to pay for it -- now, not tomorrow. So yes, I pay off all credit cards in full each month, even if I used the card to pay for something expensive or unexpected that month. <BR> <BR>Carrying credit card debt is just awful. It is a financial riptide, a monetary quicksand from which it is impossible to emerge. Think about it. It is like walking into a store and agreeing to pay 18% more for everything you see. "$5,000 for a vacation? No thanks, I'd rather pay $5,900." <BR> <BR>Just say no to spending more than you earn. Believe me, it feels great!

No way, to answer your question, Yes. We absolutely pay the whole thing with a debit card or hubby's Amex as soon as he gets the bill. We have never done it any other way. I guess it runs in the family because our parents did it the same way. If you don't have the money you don't go!

I finally talked my husband into traveling abroad this year. The only way he would consider it was if we had the money in the bank before we left. We have been in debt for years until recently so I could understand his concerns. We opened a savings account at a not-quite local bank and had money direct deposited from the paycheck. It made a big difference in the quality of our trip. It took a year to save (it was a 'trip of the lifetime') but it also gave us the pleasure of a year of anticipation and planning without the slam of the credit card bills when we returned. We are keeping the account open and the direct deposit going until we decide where to go next.

AMEX all the way and yes we do actually pay off those vacations the next month! But we do like the one lady suggested, we have a "vacation account" with a couple thousand in it to cover part of the huge AMEX bill that usually come. The rewards points are great, dollar for dollar and you can transfer them straight to your FF account. AMEX keeps us honest, we keep tabs on the balance and are not tempted to over spend because we know the bill is coming!

You all must make big bucks or something?? I still can't see how you can pay a $5,000 vacation in a month?? <BR>Do you people have kids? If not, then I can see savings there. I can if 2 people save $100.00 a month which will equal $800.00 at the end of the month then you can take a nice vacation within a year? I bet 99% of the people who come to this board and take extavagant vacations charge them? I'm sure most fodorites are in debt because of vacations.

Actually "No Way!!!" you might be surprised regarding your estimate of how many readers here take on debt to vacation. <BR>There have been a couple threads in the past about the income level/occupation of readers and from what I read, I'd say quite a number of people (certainly more than 10%) don't take on debt in order to get away. <BR>Some are disciplined savers, some make great incomes. <BR>I like "AGM/Cape Cod"'s comment, especially. Save the money to go in advance, and the planning/saving makes the anticipation and planning all that much more enjoyable. Everyone's different, but I always find that the weeks of planning and detailing trips are almost as much fun as actually taking the trips!

I still think we're not on the same wave length, No way. <BR> <BR>If you make big bucks, you can take big bucks vacations and save for them in advance. <BR> <BR>If you make small bucks, you can take small bucks vacations and save for them in advance. <BR> <BR>If you make small bucks, but try to take big bucks vacations, you will run credit card debt. So rather than pay $5900 for the $5000 vacation, scale back to what you can afford. If you don't have the money to pay the entire cost of a vacation the day you get back, you shouldn't have taken that particular vacation.

Okay I admit it, I have never spent $5000 on a vacation before.......but we tend towards long weekend (Thursday to Monday) and usually spend between $1500 to $2000, most of it charged to AMEX with some cash (at least half!) in the savings account saved to pay for the trip. But we are very "middle class" although the point about children is well taken, we have no little ones and I am sure they add considerably to the vacation costs. <BR> <BR>But when you use the rewards points on AMEX and transfer them to your FF accounts, you can cut the cost of flying on all these $5000 everyone is taking!

NoWay, I think your missing the point. My guess is that most people, myself included, only go on vacation if they have the money. So if they want to go on a $ 5000 vacation, they have that money in savings BEFORE they take the vacation, not just cough it up in between the time they leave and their bill arrives! I don't know why this is such a difficult concept? I would think this applies to just about everything from a new piece of furniture to a vacation. <BR>I mean if you don't have the money before you spend it, how in the world are you going to get it plus the interest after you spend it? That's what I'm having a hard time figuring out!

Linda, <BR>Glad you liked my ideaand knew what I meant. Yes, my mind is faster than my fingers on this computer. Have a great time in Hawaii, sounds like a wonderful trip. <BR>We do the vacation fund - very month a certain amounts goes in the fund. We keep it in a money market fund so we also earn interest. Some years we spend it and other times we don't, so it's left in to accumulate for that $5000 vacation that posters are talking about. <BR>You just save the money till you have it. It just takes some postponement of gratification. You are going to have to pay for it anyway if you charge it so just save that money first! <BR>

Restaurants usually paid by debit card (right out of our checking account). Most all other purchases credit card. Sometimes for a simple three-day weekend, we'll put everything on one card; nice to keep it all together. <BR> <BR>Don't use debit cards for purchases -- you don't have the protection. <BR> <BR>At our house all credit card bills are paid in full each month -- no matter how big or small. <BR>

Sorry Charlie, <BR>This ain't cuttin it!!! I'm sure you all travel more than 1 x a year? <BR>I know if I had the money, I sure would! <BR>Live life to the fullest. You don't know what tomorrow may hold? You die, and what did you miss out because you worried tooo much about a dollar? <BR>Hello people, are we letting life pass us by?