Holiday Booked WE Cant really afford

esuhl

If the deposit isn't refundable, I'd work out whether I'd be wasting more money on a lost deposit or on interest charges on the debt, then choose the cheapest option!

Of course, if you really can't afford it then you might need to cancel as a "damage limitation exercise".

Is there any way you could ask the airline/hotel/agent to let you postpone the trip for a year to give you more time to save up?

Milko

Going to a funeral on Monday ... Lifes too short
Go and enjoy it !

michelle2008

markwilsonfooter wrote: »

will someone please think off the children and their financial security.

There isn't enough information given in the original post to give any advice on the children's financial security. This is a decision which can only be taken with detail on savings, income, commitments and general living expenses. Therefore everyone is trying to help by giving general advice.

36square

Dumbo doesn't say when the holiday is due. I'm assuming it's in the summer and if so, to have booked it last September was very foolish. Even if there were no concerns about being able to afford it, it's very likely that it will cost less by the time it starts. In this case, it would be adding insult to injury.
There is no reason to get fleeced by travel operators even if it is 'the holiday of a lifetime'. Cancellation of early bookings is a nice little bonus for them and it's no wonder they like to encourage it.

esuhl

Milko wrote: »

Going to a funeral on Monday ... Lifes too short
Go and enjoy it !

Life may be short, but (stretched to it's logical conclusion) that doesn't justify making yourself unhappy by getting into debt, losing your home, and not being able to afford to eat properly. If it did, you should get the largest loan(s) possible and stay "on holiday" until you have no way to pay and can no longer obtain credit.

Life is too short to do things that you know you will regret. If you will regret going on holiday and getting into debt more than you would regret not having the holiday and debt, then don't do it.

gibson123

Re-do your household budget and see if you can make savings, any savings goes straight to the holiday fund. Can you raise some cash as well through boot sales or e-bay or other income generation ideas, use some of the forums to help. Go on a mission to have as much of the balance paid off before the holiday. it is surprising how quickly £20 saved or made soon add up. I save £10 a week by taking a packed lunch, £5 by having 2 alcohol free days and about £30 a week by making a list when shopping. It's easy to discipline yourself if there is a reward. Over a year it adds up to almost £2,000, that's your holiday paid. That's one person if you and your husband make savings you will have even more in your holiday fund. A friends main saving was buying a thermos coffee cup rather than buying a costa on the way to work, average saving £2 a day, she saved over £400 in a year in a big plastic coke bottle.

Milko

esuhl wrote: »

Life may be short, but (stretched to it's logical conclusion) that doesn't justify making yourself unhappy by getting into debt, losing your home, and not being able to afford to eat properly. If it did, you should get the largest loan(s) possible and stay "on holiday" until you have no way to pay and can no longer obtain credit.
Life is too short to do things that you know you will regret. If you will regret going on holiday and getting into debt more than you would regret not having the holiday and debt, then don't do it.

I take your point ... but
They're 25 years married with kids ... I reckon that puts them between the ages of 41 & 65 ish, so sensible enough to have raised kids, stayed married for a quarter of a century & as stated both continue to work hard all year (i.e. not on the brew)
They had £1000 available to put down as a deposit
They say they can afford the cc payments for the remaining £2000 balance ... so what’s the big deal
Chances are they've a fairly short term left on mortgage so is a few extra quid on a cc going to cause them to be evicted, house repossessed, no fuel for the car / house etc... I doubt it
Sticking the balance on cc for say 2 years will probably cost them another £5-600 on interest but still enjoying the holiday of a lifetime ... their words not mine.
Cancelling said holiday will probably cost them £3-400 & no holiday to speak off & a nasty memory of their 25th anniversary.
There's money saving & there's being too pessimistic imo

esuhl

Milko wrote: »

I reckon...
Chances are...
Cancelling said holiday will probably cost them £3-400 & no holiday to speak off & a nasty memory of their 25th anniversary.
There's money saving & there's being too pessimistic imo

I can see your point too, but saying that "life's too short" seems to imply that short-term hedonism is better than long-term financial security. But it's not necessarily a clear choice between enjoying yourself and being miserable - it's depends whether having a holiday now or having less debt later will maximise your happiness.

Neither of us knows how sentimental the OP is about celebrating with a holiday this particular year. You imply that cancelling would leave him/her with a "nasty memory", but that's conjecture -- he/she might be left with a nastier memory of being in debt. Which is worse: being in debt or cancelling a holiday? The answer will be different depending on personal circumstances and personality, and it's possible that the OP might find that constantly worrying about the cost and having to cut back on spending detracts from what should have been the holiday of a lifetime. Maybe he/she would have a much better time, better memories and better financial security if the holiday was postponed for now... Who knows?

Since the OP has been troubled enough to post here and also said "I know what I should do", it makes me think that he/she is uncomfortable about spending the money and has doubts as to whether that would result in the greatest overall happiness.

There's spending money and enjoying it, and there's being too optimistic and throwing your money around then regretting it, imo.

dumbo

Thanks to all of you, some really good advice here, the kids are still at high school & too young to work, but they are saving every penny they have as their spending money & both have approximately £80.00 each at the moment. My hubby & I are also saving & have accumulated about £500 so far as spending money for the trip.
Thanks for all your thoughts & suggestions, I know now that what we are doing is affordable & we are being sensible regarding spending money. We are also currently putting aside £100 per week to pay towards the £2000.00 balance.:j

D.A.

Would it not be better to use the money you're currently saving as spending money to pay off more of the balance, and thus reduce the interest charges on your credit card bill?