Ali asked in Business & FinanceCredit · 10 years ago

Is taking out a loan for a vacation a good idea?

My husband and I are in an interesting situation. We have a savings account but don't want to pull from it for our vacation and this summer, because I am not working ( I work seasonally for a school district) our finances have been tight and we are not making as much each pay day as we usually do. My husband returned from iraq 4 months ago and we have not seen his immediate family in about 2 years. We have been planning to go to visit them since before he got back, but his leave for this July was not approved til just recently. Therefore, we could not buy airline tickets in advance and they are now ridiculously expensive. As I said, we do not want to pull money out of our savings and we don't have enough nor will we currently have enough on this immdiate payday for the tickets along with all our other living expenses. We both have decent credit, pay bills on time, don't use credit cards, and are in no debt besides one car payment monthly and a very small amount on an old credit card. We have taken out one loan before for car repairs and paid it back in a timely manner in alloted payments. Is it a good idea to not take out of savings and take a loan for this vacation, because of our weird situation or should we just spend the money for savings? Would we build better credit by taking out this loan and paying it back? I think it's risky to use most of our savings. We won't have trouble paying the loan back, because by the time the allotments start coming out, I'll be working full time again.

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  • 10 years ago
    Favorite Answer

    this is a tough question. first off, tell your husband thanks for his service. Some financial people like Dave Ramsey say never go into debt. I think you guys deserve a vacation, but maybe by yourselves and save some airfare. Maybe the relatives can come see you. whatever you do good luck.

  • 10 years ago

    Too bad you had not already paid off that small, old balance on your old credit card. {Do it now, unless you are earning more money in the bank as interest than you are paying on the debt. << That is sort of an LOL reminder you are wasting money.}

    Step 2 would have been to charge some stuff every month and pay it off in full the next month. - Just dedicate an equal amount of money in the bank for the sole purpose of covering what you charged. [I charge everything, and build up rewards points and $ while paying no interest for these short-term loans every month.]

    Then, when the credit cards come rolling in with teaser rates like no interest for 6 months, or a year, you could give yourself an interest free loan (by charging the airline tickets, etc) if you deemed the trip to see his relatives was that important. (Seriously, it would be your call.)

    My credit union will let me borrow money at 4% per year, which is almost as cheap as an introductory credit card, so if you can get that rate or so, a loan would not pinch your finances very hard. BUT stay away from high interest rate loans (even credit cards above 12% and definitely NO payday loan type advances.) {Your bank could start pulling the smallish monthly payments straight from your savings account until your fall paychecks start coming in.}

    Here's hoping you can find a cheap, last minute airplane ticket on some site.

    Source(s): reasonable accountant (and military vet - so I know "going home" is important)
  • 10 years ago

    Are you suggesting a payday type loan for a vacation = NO WAY!!

    If you can get a credit card, why would you EVER think of taking a payday loan?

    There are lots of things you don't tell us. How far away is the family - 1000 miles = drive it to save money; 3000 miles = consider the flight.

    Your husband has a secure job so you can have less than the 8 month suggested emergency savings. If you have enough, you can take the borrow from your savings.

    Additionally, most school district have practices where you can be paid over the 12months instead of only during the school year. This might help manage your money in the future.

    Remember, you have 25 days interest free on your credit card.

  • 4 years ago

    yes, very possible. first off if you plan it far enough in advance you can buy your park tickets online once a paycheck. a 60.00 ticket here this week another two weeks from now. disney tickets dont expire, you can use them anytime. so just buy all your tickets in advance.my wife and three girls usually rent a fully furnished home for about 700.00 a week. there is a 10% deposit and then you just make payments on the balance up until 4 weeks prior to arrival. by staying at a home, we usually make out a grocery list/menu for when we are there. we will pick up can goods, cereals and any thing else that wont spoil weeks and months in advance to leaving. then once in town, we shop at a local grocery for meats, chicken,milk and so fourth. dont get me wrong, we do eat out at least a couple of times during the vacation, but we much rather eat home cooked meals. also, disney is one of the few parks that allow ice chests and outside food and drinks into the parks, we will usually pack a few sandwiches and waters and juices and and a few snacks. it makes things so much more enjoyable knowing that you have everything completely paid off upon arrival and the only money you'll need is for parking, souvenoirs and any other disney goodies you desire. it's really easy as long as you commit to buying everything you can before you arrive. it's not that we are stretched for money, but it sure makes the vacation a whole lot more enjoyable than to worry about how much youv'e spent during a weeks vacation compared to that weeks vacation paid out over 6 or 7 months withouit taking out a loan. try this and i gurantee you and your family will have a very enjoyable and memorable vacation.

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  • 10 years ago

    Open an account and start saving for a future vacation, is it a necessity that you see his family immediately? If not then see them at a later time, it's not worth taking a loan out and banking on paying it off because you will be working by the time the allotments are due. Taking it out of savings could put in a spot if you fell on hard times.

    I would skip it all together, unless some in his family has failing health and this is the only time you can go.

  • 5 years ago

    I searched across the internet and came upon a lot of trash. Anyhow the webpage that worked for me: loanhome.info-

    RE Is taking out a loan for a vacation a good idea?

    My husband and I are in an interesting situation. We have a savings account but don't want to pull from it for our vacation and this summer, because I am not working ( I work seasonally for a school district) our finances have been tight and we are not making as much each pay day as we usually do. My husband returned from iraq 4 months ago and we have not seen his immediate family in about 2 years. We have been planning to go to visit them since before he got back, but his leave for this July was not approved til just recently. Therefore, we could not buy airline tickets in advance and they are now ridiculously expensive. As I said, we do not want to pull money out of our savings and we don't have enough nor will we currently have enough on this immdiate payday for the tickets along with all our other living expenses. We both have decent credit, pay bills on time, don't use credit cards, and are in no debt besides one car payment monthly and a very small amount on an old credit card. We have taken out one loan before for car repairs and paid it back in a timely manner in alloted payments. Is it a good idea to not take out of savings and take a loan for this vacation, because of our weird situation or should we just spend the money for savings? Would we build better credit by taking out this loan and paying it back? I think it's risky to use most of our savings. We won't have trouble paying the loan back, because by the time the allotments start coming out, I'll be working full time again.

  • MadMan
    Lv 7
    10 years ago

    One should never borrow money for discretionary spending, such as vacations or gifts. It is a tough situation you are in but I think that you should not borrow for this.

    Best wishes to you and your husband.

  • Pattie
    Lv 4
    3 years ago

    A lot of insightful answers here

  • 10 years ago

    get in car...fill with gas...drive...when empty find hotel,,,stay for night...fill gas tank..drive home...= vacation...loan..NO r u crazy

  • Anonymous
    10 years ago

    Well, do you guys really need to see them?

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