Reply to Need a break, don't have the cash - Would you put $3k on credit card for vacation?

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[quote=Anonymous][quote=Anonymous]I'm the OP, thank you for the very honest feedback. I really needed to hear it.

Honestly, my thoughts are the same as you guys, but I guess my desire to get away for a break is getting the best of me, wearing me down.

I did consider doing something small this year, and saving up for a very nice trip next year. [b]Problem is, I always say that, then use all the money I save up for something else. [/b]For instance, last year I saved up $$$, then used it to buy a house in a better school district for my child. So I saved up again for this year, then had unexpected house expenses (higher taxes, roof rats, trees cut down due to storms).

So I feel there will always be something. But I don't want to keep putting off travel, because you just never know what may happen in life. Death, illness, cancer, disability.

*sigh* First world problems...[/quote]

And here is the reason.  If you can't save money for something you really need, like a vacation when you're stressed, how do you know that you'll have the discipline to actually pay the CC once you owe money?  And what do you do if you have an emergency?  Let's say you charge $3K and go on your vacation.  What happens when you get back and you find that your water heater breaks?  $1K that has to come from somewhere.  Or one of you needs an operation and the out-of-pocket deductible is $750?  What about your car breaks down and the repairs are $600?  Does that change the equation for paying off your CC by the end of the year?  And does paying off the CC by the end of the year include budgeting for Christmas or will Christmas presents make your CC payments go up again and you'll pay off by March?

You should only put charges on a CC that you can pay off at the end of the month.  The only exception should be an emergency that cannot be handled any other way that must be paid, like a medical emergency, car repairs that are needed to get to work/school.  This doesn't include a vacation, no matter how much you need it.

What you should do is open a new account at an on-line bank.  Choose one that has only electronic transfers and gets the maximum interest (usually around 1%) for savings.  Transfer $500 a month into the account.  This is your vacation account.  You don't go on vacation until there is enough in that account (less the minimum amount you need to keep in the account) to pay for the account solely out of funds in that account.[/quote]

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