Getting a loan to do fun stuff!?

MallyGirl

Kids of 2 and 4 will remember very little of a blowout holiday.

boo_star

MallyGirl wrote: »

Kids of 2 and 4 will remember very little of a blowout holiday.

I was going to say this.

I'd add that they probably won't be allowed on most of the rides anyway.

Save your money for a few years if you want a holiday in Florida that everyone can remember.

Lioness_Twinkletoes

19lottie82 wrote: »

You claim you are prudent with money, if so then why don’t you have any savings?

He does "A year's worth of bills in the bank"

bspm1

Mrsn wrote: »

I think it’s great that you are planning so sensibly and that you have managed to accrue a month or so worth’s of bills just incase. The loan to me is a tricky one, from the way you’ve described it you don’t have money left over at the end of the month so I’m not sure where the money would come from for the repayment each month.

I know people who use credit for holidays etc and others that use cash. I can honestly say those that use cash are more savvy generally with their spending and saving habits. Credit cards can be incredibly useful if used correctly but my personal experience is I cannot be trusted and I’ve spent a long time repairing that damage (not saying this would be the case for yourself just is very easily done!)

The op actually stated he had a year or twos worth of bills in the bank.

enthusiasticsaver

Personally we never liked borrowing money for holidays. We did a few big trips when our kids were young to USA and Australia but if we did use a 0% credit card it was paid off in the year the holiday was taken. All other trips were paid for in cash.

I think having a year or two in bills is good though so you do have savings but at the age your two children are big holidays will not be remembered so I would use the next five years to save for big holidays at an age they will be appreciated. I cannot see any point at all in taking pre schoolers on big holidays. More stress than anything else. I certainly would not use equity for such things unless they added value to the house and certainly not if you are self employed. Maybe you overstretched yourselves with the rental property?

JimmyTheWig

Macc wrote: »

The frustration atm is we are fairly asset rich but cash poor. We've got the net worth of being able to do what we want whenever but the lifestyle of almost living hand to mouth. Looking for a way to re-balance to a more middle ground so can get some benefit now of being in a decent position overall.

Would it be worth selling the house that you let out?

JReacher1

I've done something very similar in the past and if you are sensible there is no problem doing something like this. I borrowed £7k over 2 years and in total it cost me £7,200 to pay back (at £300 a month). I used that £7k to have two good holidays over the two years.

It worked out well and only cost me £200. Was well worth it.

Of course I only suggest doing something like this if you have a secure income

borkid

Macc wrote: »

Thanks guys, I know you are all correct that it is financially not the right thing to do. I'm just looking at it in a "life's too short" kind of mindset. It's probably a mid-life crisis! Everyone saying don't do it has given me the jolt to re-evaluate.

I think maybe I've been too extreme in planning for the future and left myself forgetting about the current. I'm now trying to redress the balance a bit, probably in a dumb way. I think I feel guilty at "depriving" the family when our friends are all going on nice holidays etc even though they are worse off than us overall.

Sorry, this is a loans forum not therapy!

You are not depriving the family by not keeping up with the Joneses. When my daughter was little she wanted a rainbow pony, they were too expensive, well we thought they were, so instead of following what others would do I made her one. 30+ years on the first toy she thinks of from childhood is the rainbow pony I made from scraps. There will be enough peer pressure when they start school.

adindas

borkid wrote: »

When my daughter was little she wanted a rainbow pony, they were too expensive, well we thought they were, so instead of following what others would do I made her one.

That is a very good advice to save money :). That is the spirit of the MSE is not it ??

borkid wrote: »

30+ years on the first toy she thinks of from childhood is the rainbow pony I made from scraps. There will be enough peer pressure when they start school.

Lol. She is now 30+ yo and remember the rainbow pony you have made, she probably just did not want to say that you are the stingiest father on earth. But she remember that you are the coolest dad on earth.

warby68

If you can afford £450 pm you can save for a good holiday in 12m or so.

If you want a blowout one sooner than you can save, save half and borrow half. Clear each holiday before you borrow for the next. If you must borrow that is. I really don't get borrowing £25k upfront for 5 years' worth of holidays.

Generally against borrowing for holidays full stop but the above is a lot less risky than £25k upfront and I can see a rationale for some adjustment if you really see a right time to do a particular thing.

Also if you have a couple of years' income in the bank why not borrow from yourself? Its the same result - lower savings or higher savings less debt if it all goes pear shaped.