Getting a loan to do fun stuff!?

Mrsn · 13 June 2019 at 6:37PM

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!)

Kentish_Dave · 13 June 2019 at 6:46PM

I agree with others. Stop sticking the extra away where you can’t access it, put it into a savings account instead and then choose what to spend it on when you have enough,

Going forwards keep up the habit, save some “fun” money and blow it on whatever floats your boat.

Robisere · 13 June 2019 at 7:13PM

Agree with Kentish Dave. We are both in our 70's and have not had a loan since many years ago, when we first met and married. (2nd time for both) We struggled after both had previous OH's whose activities reduced us to nothing. We used the loan to start again, worked hard to pay it off and never looked back. Everything we needed, we bought with what we had. Anything we wanted, we saved for. Think about what your kids will need when they are older, such as Uni. To be able to help them with the increasing cost that is going to take, will surely be better than any Disney holiday now. Have holidays closer to home: a beach and plenty of play space is all they need now. To spend as much time with your children as you can, no matter what activities you do, is very good for a family.

This year is a big anniversary for us and we decided to splash out on a luxury holiday. We have been saving for it for about 18 months now, with a Savings plan and two accounts. We will have a great time, but after that everything is in the lap of the gods!

You are doing well with your lives but the rewards should be expected in the future. Don't mess up your plans by trying to do what others do on credit. Their future lives will not be as fruitful as yours. Just read some of the horror stories here from those who ignore what they need because of what temporary pleasure they might want.

Sncjw · 13 June 2019 at 7:17PM

How will you afford to pay the loan back if you don’t have money left over in the first place. They will want you to start paying within a month of getting the loan.

Plus the fun stuff will ending up cost more if you take in account of interest.

Why not go on debt free wannabe page and post statement of affairda. They can look where you can save money to help put towards fun stuff. You don’t need to get I debt to do ir

Ben8282 · 13 June 2019 at 8:03PM

The loan is not a good idea.
Firstly, there is no guarantee that you will actually get the low APR advertised.
Secondly, I am not sure that this 'five year plan' is a good ides. What are you going to do with the excess money that you don't spend in year one? You won't earn enough interest in a savings account to cover the interest that you are paying on the loan, even if you do get the low APR that you imagine you will get.
It really is a shame that you have never previously held a credit card. If you can afford the repayments, I would have suggested that you get a 0% purchases card to do the fun things that you want to do in the immediate future, then repay it over say the next year. When it is repaid, you could think about repeating the process next year. There is nothing wrong with financing a holiday in this way so long as you can afford the repayments and repay the full cost of holiday 1 before booking holiday 2. But unfortunately, as you have never previously held a credit card, you are unlikely to get such a card.
Also, at 2 and 4, your children are a bit young. If you want to give them the experience and memory of going to Disneyworld, suggest you wait until they are a bit older.

Skibunny40 · 13 June 2019 at 8:25PM

What would the monthly repayments be? Could you just put that amount into a savings account and then use it in the same way, once you've built up sufficient funds for what you want to do. It doesn't sound like you want to blow £25k immediately, so maybe work out what you'd like to do over the next 5 years, how much that would cost and how it matches with how much money you're putting aside each month.

If you really feel you need to do at least SOMETHING now ( and I do totally understand this desire, especially if you kinda know you're going to be okay financially in the future) then maybe explore getting a credit card for a much smaller amount if you can also get a 0% balance transfer card to transfer it to - then you can part pay that off whilst building another pot of savings for your next family adventure.

Macc · 13 June 2019 at 8:43PM

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!

[Deleted User] · 13 June 2019 at 9:03PM

Trust me - there's plenty of other free and cheap ways you can give your kids a great childhood without the service of Mr M Mouse and his companions.

And home and financial security is up with there the best of them.

JayRitchie · 13 June 2019 at 10:09PM

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!

Hi Macc - you have my sympathies. I think peoples circumstances and decisions are so different we don't really know what 'normal' is. My guess is that there are plenty of people who borrow money year after year, and plenty who get significant gifts from parents for things like exotic holidays. If a fair number of your friends are in these categories you might well feel you are shortchanging your children.

On the other hand your initial post doesn't really seem particularly extreme in money saving (at 36 years old). You are aiming to pay off your mortgage and that of a rental property by around the age of 50, and have enough money to survive for a year or so with no income?

I don't think any of that is unusual for people with reasonable but not perfectly secure incomes.

bertiewhite · 13 June 2019 at 10:33PM

Just my 2 pence worth - a lot of holiday companies ask for a deposit and then allow you to pay in instalments, don't they?

Getting a loan to do fun stuff!?

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