Do you have holidays if in debt?

enthusiasticsaver · 16 June 2019 at 7:48PM

I just received a Dave Ramsey newsletter re vacationing if you are following his baby steps programme. Essentially he says no one should go on holiday if on baby step 1 or 2 which is build up small emergency fund and clear debt and only short breaks or staycations if on babystep 3 which is build up large emergency fund. That seems a bit hard core to me but wanted to gauge other's views.

My personal opinion is that providing you have some emergency savings and are not adding to debt for the cost of the holiday by budgeting it is ok to take a holiday. I had a discussion with my daughter today re holidays and was reminded we did not do holidays with our children when very small not only because it was a pain to take them away but because we could not afford to save for one. We did plenty as they got older though and we had more disposable income but we never had debt beyond a mortgage and occasionally a car loan or interest free credit on furniture. Credit cards always ruined my budgets so we rarely kept balances on them. These days though it seems that most people do think they are essential and not a luxury and even if you have debt you should still go on holiday at least once a year.

I think there are merits in going away and having some quality time with your family but I am not sure I could prioritise this over what I call essentials which is emergency savings and manageable debt. I am interested in whether anyone especially following the Dave Ramsey mantra agrees with him that holidays should not be taken until baby step 4 which is when both small and large emergency funds built up and debt snowballed and cleared? Does anyone forego holidays because they cannot afford them or do you put them on a credit card?

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RecentPost · 16 June 2019 at 7:52PM

It really depends if it wont take you off track

Willing2Learn · 16 June 2019 at 7:57PM

… and whether it an affordable part of your monthly budget after debt repayments, bills and all other contractual obligations...

I think that Dave Ramsey is saying that it in many cases, a holiday fund will not be affordable at the beginning of a debt-busting journey. And he is is probably correct in that assertion...

Cat_Loving_Lady · 16 June 2019 at 8:07PM

I think it's about achieving balance because you still need to have experiences. You could spend 5 years paying off debts and had no holidays then drop dead.
I think as long as the debt is coming down by repayments holidays are ok but keep them low cost. And dont add to debt by taking the holiday.

DawnW · 16 June 2019 at 8:10PM

I don't think it is worth it if it adds to debt and stresses a person out for the rest of the year, as seems to happen in some cases, sadly. Better to clear the debt down a bit first and not add to it.

JayRitchie · 16 June 2019 at 8:21PM

I think it depends on the cost and how long you will be in debt for. £500 to stay with family abroad spending no more than you would at home - probably a good thing to do. £4000 for a package holiday - no way.

enthusiasticsaver · 16 June 2019 at 8:24PM

Cat_Loving_Lady wrote: »

I think it's about achieving balance because you still need to have experiences. You could spend 5 years paying off debts and had no holidays then drop dead.
I think as long as the debt is coming down by repayments holidays are ok but keep them low cost. And dont add to debt by taking the holiday.

I think I would agree with that to a certain extent but in many cases debt is accumulated by taking holidays people cannot afford. Many on here in debt say their debt was built up by putting holidays on credit. This YOLO (you only live once) attitude of you cannot say no to holidays or experiences is the very reason some people have high debt. A very small percentage of those may drop dead within 5 years but a much bigger percentage will still be paying for those holidays 10 or even 20 years later.

I do agree there needs to be a balance though as debt busting can take years. As you say no adding to the debt is sensible and keeping them low cost.

Sea_Shell · 16 June 2019 at 8:42PM

Parents should concentrate on spending quality time with their children during their annual leave.

WHERE they do this is secondary. Take a picnic to the park, go for a walk in the woods, borrow a tent and camp in the garden.

It's not where you are, but who you're with!!

enthusiasticsaver · 16 June 2019 at 9:04PM

Sea_Shell wrote: »

Parents should concentrate on spending quality time with their children during their annual leave.

WHERE they do this is secondary. Take a picnic to the park, go for a walk in the woods, borrow a tent and camp in the garden.

It's not where you are, but who you're with!!

That I agree with entirely.

BookmobileBadGirl · 16 June 2019 at 9:04PM

I see holidays as a luxury, so no I would not have a holiday whilst getting out of debt or building my emergency fund.

I don’t have big holidays now as I am trying to overpay my mortgage, just cheap city breaks (think Ryanair and Ibis Budget)

enthusiasticsaver · 16 June 2019 at 9:11PM

BookmobileBadGirl wrote: »

I see holidays as a luxury, so no I would not have a holiday whilst getting out of debt or building my emergency fund.

I don’t have big holidays now as I am trying to overpay my mortgage, just cheap city breaks (think Ryanair and Ibis Budget)

That sounds sensible. It is a question of priorities. I have always seen holidays as luxuries but many do not agree and see it as a necessity. I sometimes think it is today's consumer driven society which has conditioned as all to think we must have a holiday away from home every year. Whilst I accept that building up memories with your partner and children is important I wonder if that should take precedence over a secure financial future. Surely spending time with them without the pressures of work is enough whether at home, in the local park or on a beach nearby rather than a package holiday abroad or the overpriced Holiday camps which ramp up their costs just as school holidays start.

Do you have holidays if in debt?

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