asdf

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.

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.

You can live a wonderful life without a lot of junk.

Debt-Free

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.

If you pay cash for things, all you know is that your money is gone, and you'll have no idea where it went.

Mr. Credit Man

I guess it's easier to whip out a credit card (free money) so we think?
But you'll be paying the price later..
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.

In Debt Diva

Hey I'm jealous of those who are debt-free!!
My motto is CHARGE!!!
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?

G. Kremer

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.

s

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.

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.

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.

Linda

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.....

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".....

No Way!!

Hey,
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?
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?

Debt-Free

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.

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."

Just say no to spending more than you earn. Believe me, it feels great!

curious

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!

AGM/Cape Cod

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.

GatorGirl

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!

No Way!!!

You all must make big bucks or something?? I still can't see how you can pay a $5,000 vacation in a month??
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.

Joan

Actually "No Way!!!" you might be surprised regarding your estimate of how many readers here take on debt to vacation.
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.
Some are disciplined savers, some make great incomes.
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!

Debt-Free

I still think we're not on the same wave length, No way.

If you make big bucks, you can take big bucks vacations and save for them in advance.

If you make small bucks, you can take small bucks vacations and save for them in advance.

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.

GatorGirl

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.

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!

curious

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.
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!

Sue

Linda,
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.
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.
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!

American Woman

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.

Don't use debit cards for purchases -- you don't have the protection.

At our house all credit card bills are paid in full each month -- no matter how big or small.

In Debt Diva

Sorry Charlie,
This ain't cuttin it!!! I'm sure you all travel more than 1 x a year?
I know if I had the money, I sure would!
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?
Hello people, are we letting life pass us by?