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  • FIRST POST
    • PhotoMan
    • By PhotoMan 27th Jul 19, 4:03 PM
    • 2Posts
    • 0Thanks
    PhotoMan
    Ways to spend a lump sum on a special holiday
    • #1
    • 27th Jul 19, 4:03 PM
    Ways to spend a lump sum on a special holiday 27th Jul 19 at 4:03 PM
    Hi

    I am looking for advice and wonder if anyone else has encountered and overcome a similar problem. I tired to post this on the credit card forum but kept getting a warning saying that I was posting on the "grabbit" forum, so am posting here instead. This is my first post so apologies if this is inappropriate.

    I have just retired so have been paid a lump sum. However, we are having difficulty spending our own money! We wish to spend it on an expensive, once in a lifetime holiday, with lying down (expensive) airline seats and a holiday lasting a number of weeks. We currently have two credit cards, Halifax Clarity which has a credit limit of 12,000 and Nationwide cash reward which has a credit limit of 14,000. We telephoned the Halifax to ask for an increased credit limit but they would only allow us to increase it by 500. I suspect that the problem is that our monthly income is now a pension so it appears to their algorithm that we cannot afford a higher limit, but it does not take into account that we have a large, one off lump sum.

    We have direct debits set up so that we always pay our monthly bill in full.

    We can pay for the flights using our current account debit cards. But we wish to use the credit cards to pay for accomodation, and car hire and other expenses, over a couple of months. Hotels often "lock off" a sum of money greater than the accomodation that you don't get back until you have left and they know you have left the TV and bath towels behind. So we need to have more credit available on our cards than we currently have.

    A number of years ago we paid a sum of money into a credit card account, putting it into a positive balance to increase the amount we could spend. But the credit card company then lost all record of this. Fortunately we were able to prove that we had made the payment but it was a real palaver getting it sorted out.

    Things that we could do but do not want to do:
    1. Internet/telephone banking due to accounts we have heard of banks blaming innocent customers when they are hacked/scammed and using this blame as an excuse for not reimbursing the customer.
    2. Use a debit card to make payments abroad as there may be a charge and/or a poor exchange rate.
    3. Use a pre-paid card. Travel ones are too limited - often cannot be used for car hire or petrol. And with all prepaid you need to load them with more money than needed to allow for the hotel to "lock off" an excess that we would not be able to use until we had left, leaving us with foreign currency on a card.

    We would be happy to have a credit card that we had to pay a fee for, along the lines of American Express, but wonder whether this would allow us a higher credit limit or not?

    Giving the increasing availabilty of long and expensive cruises we cannot be the first people to encounter this problem and wonder what others do.

    Does anyone have any advice/experience that may help us to spend our own money!

    Thank you.
Page 1
    • chesky
    • By chesky 27th Jul 19, 11:54 PM
    • 1,240 Posts
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    chesky
    • #2
    • 27th Jul 19, 11:54 PM
    • #2
    • 27th Jul 19, 11:54 PM
    Do you have close relations who would agree to pay for some of your expenditure on their credit cards, with you paying them via your bank account? How much are we talking about by the way. Could you spread some costs over a couple of months, which if you settle every month, might work.
    • chesky
    • By chesky 27th Jul 19, 11:58 PM
    • 1,240 Posts
    • 2,155 Thanks
    chesky
    • #3
    • 27th Jul 19, 11:58 PM
    • #3
    • 27th Jul 19, 11:58 PM
    Or get a couple more credit cards.
    • Alfrescodave
    • By Alfrescodave 28th Jul 19, 9:52 AM
    • 719 Posts
    • 435 Thanks
    Alfrescodave
    • #4
    • 28th Jul 19, 9:52 AM
    • #4
    • 28th Jul 19, 9:52 AM
    Or get a couple more credit cards.
    Originally posted by chesky
    Considering all your "limitations", this would appear to be a possible solution although you would then have to handle additional cards with their associated risk of loosing them.

    Personally I would pay off upfront as much of the flight/accomodation costs as possible which would then enable you to start your travels with maximum credit on your cards.

    Have you actually costed out how much this holiday might be ? Your current cards might be sufficient if you prepay some of the costs.
    • chesky
    • By chesky 28th Jul 19, 2:15 PM
    • 1,240 Posts
    • 2,155 Thanks
    chesky
    • #5
    • 28th Jul 19, 2:15 PM
    • #5
    • 28th Jul 19, 2:15 PM
    I know they've dropped out of fashion, thanks to credit cards, but what about travellers cheques for your spending money?
    • comeandgo
    • By comeandgo 28th Jul 19, 2:25 PM
    • 2,760 Posts
    • 3,787 Thanks
    comeandgo
    • #6
    • 28th Jul 19, 2:25 PM
    • #6
    • 28th Jul 19, 2:25 PM
    Why are you wanting to use credit cards? If it is for the greater protection then you still get protection even if you only pay 100 on credit card and pay the balance with debit card.
    • chesky
    • By chesky 28th Jul 19, 2:53 PM
    • 1,240 Posts
    • 2,155 Thanks
    chesky
    • #7
    • 28th Jul 19, 2:53 PM
    • #7
    • 28th Jul 19, 2:53 PM
    How much are you planning to spend on this holiday? 26k is a pretty good sum, which is what you seem to have available to you right now. The couple of months before, pay everything by debit card, so you have the maximum credit on the cards. Hotels have safes where you can lodge either cash or travellers cheques. Pre pay your flights. Also car hire.
    • FabFifty
    • By FabFifty 28th Jul 19, 6:10 PM
    • 104 Posts
    • 142 Thanks
    FabFifty
    • #8
    • 28th Jul 19, 6:10 PM
    • #8
    • 28th Jul 19, 6:10 PM
    Pay the outstanding balance on your credit cards in full before going away and also set up a standing order to pay a specific sum of money to the credit cards every week whilst away to ensure that anything spent is paid off every few days, leaving you with full credit (& also some extra). It works - we've done it.
    • PhotoMan
    • By PhotoMan 28th Jul 19, 6:38 PM
    • 2 Posts
    • 0 Thanks
    PhotoMan
    • #9
    • 28th Jul 19, 6:38 PM
    • #9
    • 28th Jul 19, 6:38 PM
    Hmm. Interesting.
    • Katiehound
    • By Katiehound 28th Jul 19, 10:10 PM
    • 4,985 Posts
    • 39,901 Thanks
    Katiehound
    People pay for their long and expensive cruises up front, probably 90 days before it departs, not pay-as-you-go which seems to be what you are wanting.

    Then generally if cruise is divided into sectors they settle their ship account every 3 or 4 weeks- so they are not needing huge credit allowance.If it's a very very expensive cruise it is pretty much all in- very few extras needed.
    Being polite and pleasant doesn't cost anything!
    If you found my posting helpful please hit the "Thanks" button!
    Many thanks


    • Katiehound
    • By Katiehound 29th Jul 19, 3:37 PM
    • 4,985 Posts
    • 39,901 Thanks
    Katiehound
    There is one more CC that you might consider- Saga. This is also commission free for purchases. (I think worldwide,but not sure as I no longer have one.)
    Being polite and pleasant doesn't cost anything!
    If you found my posting helpful please hit the "Thanks" button!
    Many thanks


    • pollypenny
    • By pollypenny 30th Jul 19, 10:47 PM
    • 26,989 Posts
    • 71,005 Thanks
    pollypenny
    There is one more CC that you might consider- Saga. This is also commission free for purchases. (I think worldwide,but not sure as I no longer have one.)
    Originally posted by Katiehound


    Saga C/card was discontinued last year.

    Based in Belfast, so possibly a Brexit casualty
    Member #14 of SKI-ers club

    Words, words, they're all we have to go by!.

    (Pity they are mangled by this autocorrect!)
    • missile
    • By missile 31st Jul 19, 7:37 AM
    • 10,288 Posts
    • 5,307 Thanks
    missile
    Hi

    I am looking for advice …. We currently have two credit cards, Halifax Clarity which has a credit limit of 12,000 and Nationwide cash reward which has a credit limit of 14,000. ….Does anyone have any advice/experience that may help us to spend our own money!

    Thank you.
    Originally posted by PhotoMan
    Apply for more cards
    Easy to open another Halifax current account in your wife's name to get another card
    Open additional NW current account in your wife's name using link to get free cash + another credit card
    Use Booking.com and pay hotels on departure.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home
    • PennyForThem
    • By PennyForThem 3rd Aug 19, 11:18 AM
    • 611 Posts
    • 546 Thanks
    PennyForThem
    If you are applying for more cc then consider transferring balances to an interest free cc which has this option for 24-33 months.

    So your credit rating needs to be goodish. This is what I did:

    Paid business class flights and airbnb on one cc. Transfered balance showing these purchases to balance transfer interest free cc. Set up a direct debit to pay balance off completely 2 months before 0% interest ceased. Hid card so would not use it inadvertantly.

    Just a thought.
    • getmore4less
    • By getmore4less 14th Aug 19, 1:20 AM
    • 37,624 Posts
    • 23,260 Thanks
    getmore4less
    Cruises you pay in advance.
    You can also preload credit onto the ship account before you go.

    If you have a plan then prepay hotels and car hire with zero excess insurance.
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