Next years holiday

LJD1_2

Well, for the first time ever we've nearly paid for next years holiday upfront. We put it on an interest free card and there's just under £500 left to pay. It sounds extravagant but we're going to stay with my sister in the states as it's actually one of the cheapest ways we can have a good holiday.

What i'd like advice on is....the rate of the dollar to the pound is so good at the moment, do I buy the spending money now and hold off paying the interest free credit card as I'll get more dollar for my money or do I just pay the cc off first so it's gone? We want about £250 in dollars for the two weeks we're there.

john_kent

Cant help on exchange rates , but I guess the benefit is that if you buy now , at least you have your cash for spending.

I have saved ebnough for a flight to my girlfriends for 6 weeks (free accomodation:) ) So now saving spending money.

It feels so much bette rhaving a break and knowing its pai ofr.

FatJock

LJD1,

Under normal circumstances I'd say pay off the CC but as the US$ is worth $1.89 to the £pound (last time I looked) I'd be tempted to divert some money to buying dollars at the mo. Obviously I'd encourage you to ensure the CC is paid before the %free rate expires.

good luck with it.

Cheers,
FatJock

WelshWoofer

I'd buy the dollars now - you'll get far more than in the future. Also, once you pay them off on the card you'll have the spending money ready and not have to rush around trying to scrimp together the cash to buy them just before the holidays. I did a similar thing with Euros for my hols this year - you can't spend Euros here (obviously) so it stopped me frittering away the money I had saved up for the holiday. (No interest from leaving the money in the bank I know, but also no unnecessary squandering - which I am very prone to!)

LJD1_2

Thanks for your advice everyone. I think I knew the right thing would be to buy some dollars now but just wanted someone else to tell me too! Rachelmk, that's my thinking too, if I put it into dollars then I can't spend it!