In the personal finance community, there seems to be many common debates: buying new cars versus a used car, self employment and whether it is for you, and whether you should go on a vacation when you are in debt. Now that the warmer weather has passed (for some of us), you might be thinking or dreaming about your next vacation. But what if you’re in debt? Putting aside the common terms and meanings of “bad” debt and “good” debt, when do you decide whether you should continue paying off debt and sacrificing not having yet another vacation, or splurging and finally going on one?
There are some times when taking a vacation isn’t horrible, even if you do have debt. This can be if your debt is manageable. Such as if your debt is your home payment and you have money and future cash flow to pay for this. Maybe you’re going crazy at work or at home and need a relaxing break. Taking a break isn’t a bad thing! It can help clear your mind and have you more refreshed for when you start back up again.
Also, maybe you have a vacation fund, as some do. If you don’t have this yet, then start designating a certain amount of money every month or every week towards it. This way you don’t have as much guilt when you do go on a vacation. I have a friend who once took out one of those payday loans in order to go on vacation, because he wasn’t prepared and didn’t save ahead, yet he desired to go away.
However, some will argue that by having a vacation fund, that you aren’t exactly adding to your debt when you go on vacation, but you also aren’t eliminating your debt because you are still designating available funds towards some other purpose.
But what if your debt is $50,000 worth of credit card debt that you owe because you have a clothing addiction? Where do you cross the line then? These are all difficult things to think about when you’re in debt. However, there are also ways to save money if you do decide to take a vacation while still in debt, so that you can truly enjoy your vacation and not feel bad about it. Taking a vacation while you’re still in debt is not always bad!
1. Go camping
Camping is usually affordable, especially when you already have the tools and you are camping relatively close by (as compared to flying somewhere and camping there).
Camping can also be a great way to relax the mind since the normal, everyday, rush of life isn’t around you (instead nature is).
2. If you have a lot of people, drive
Driving to your vacation can usually save a lot of money if you have enough people to split the cost of the gas needed to get there and back. Buying airfare is usually only cheaper if the place is farther away or if there are a limited amount of people going on the vacation with you.
3. Bid on your hotel, couch surf, stay at a private home
These are all great ways to save on your vacation. Bidding on hotels can make the hotel very cheap, and there are many websites out there that can teach you how to get your best deal when bidding.
Couch surfing is also a great way. It is FREE! And most of the time, the people who you are staying with will show you around and are extremely friendly.
Using sites such as AIRBNB is also another great way to save. You can usually stay in a house, condo, or apartment for much cheaper, and they are much more homey and at a much better price than a hotel.
I just read somewhere else someone talkinga bout staying in private homes. You can search some websites and people rent out their homes or apartment or a room for WAY cheaper than hotels! Crazy. I had never thought of that, and definitely think it’s a great idea for the family and me to keep our trips cheap. So #3 on your list gets a big thumbs up from me! :-)
TB at BlueCollarWorkman recently posted..Are Fake Shutters Worth The Money?
We went to NYC a few years ago and rented a 2 bedroom apartment for super cheap, it was like 140/night including everything for 2 couples!
I would go on vacation and I’m in debt. I don’t think it’s that bad. My debt is my car loan and student loan and I’m paying them off, but I recognize that I have so many other financial goals to consider.
Daisy @ Add Vodka recently posted..5 Things to Look for In a Leader
Yeah I think it is ok to go on vacation while you are in debt. We all need to get away and relax. A vacation might even be just what a person needs to keep their debt reduction into high gear. Obviously you should be going and staying in a 5 star hotel.
Depending on how much high-interest rate credit card debt you have would ultimately depend on the decision whether I’d go or not. My wife and I still have $45k of student loans but we’ve gone on vacations 3 of the past 5 years.
As long as we’re not going further into debt, then I have no issue with it from our end. However, if that was $45k in credit cards, then it would be another story.
Yeah this is how I feel as well. If I had $45K in credit card debt because of clothes that I bought, I wouldn’t be going on a vacation.
Michelle recently posted..Avoiding the Commercialization of Christmas
I think going on vacation when you’re in debt isn’t bad all the time. You need to escape every now and then!
Michelle recently posted..Avoiding the Commercialization of Christmas
I got a lot of criticism for going on vacation while in debt, but I’m still happy I made the choices I did. In the past year I’ve spent over $10,000 on vacations and right now I’m only $8,900 in debt so it’s weird to think that if I hadn’t traveled, I’d be out of debt right now. But the idea of missing out on the experiences and friendships I’ve had makes me so sad!
I’ve always felt my debt was manageable and I have such an accommodating cash flow. Plus I’m in a super secure job so I think that tempers the risk a bit.
Bridget recently posted..You are your most important financial asset
Wow, $10,000 in vacation money for yourself is sweet! And the year isn’t over either!
If you can manage your debt, why not? Vacations and travel are fun!
Sam recently posted..There Is No Monopoly On Being Rich
The decision is pretty personal – the interest rate of the debt, the amount of time it will take to pay off, the type of debt, and the personality of the person. I think if you’re in an intense debt payoff mode for a year or two it’s reasonable not to spend a bunch of money on travel during that time. Mortgage or student loan debt, though, that’s going to take 5 years or more to pay off – yeah I definitely think some vacations are in order in that time.
We didn’t go on vacation this year because of debt. It was really hard, too. We’re just hardcore…what can I say? ;)
Michelle @ See Debt Run recently posted..Save Money On Eye Care
I would never say you should forgo going on vacation while still in debt. As long as it is within reason and like you said, you actually budget for it so that you dont accumulate more debt.
Adam Hathaway recently posted..How I Am Generating Passive Income by Dumping My Savings Account and How You Can Too
I think everyone needs some sort of a break. As long as you don’t add to the debt, I’d go. Like you said, you don’t have to spend a mint to have a great vacation. Going somewhere in the off season can save you lots as well. I work in Telluride, CO a few times a month and you can get killer deals during off season. I love that time of year because there aren’t so many tourists and you can hang with the locals more. Locals always know where the good deals are, so make friends.
Kim@Eyesonthedollar recently posted..Can’t Take My Eyes Off These Blogs #9-Brothel Edition
Going on vacation when in debt is not totally a bad thing. As long as you don’t add to the debt pile, go ahead and recharge yourself. This might be helpful to easing the mind and confronting the problem better when you return.
CreditDonkey recently posted..Americans in Debt – and Know It
I am all for vacations and would definitely go on a vacation if I was in debt. We only live once and many life-long lasting memories are made when on vacation. I think so long as you choose a sensible destination then it is OK!
Savvy Scot recently posted..The Sunday Review – Top Posts of the Week
No soup for anybody who is more than $10,000 in debt!
I donno. Small vacations are fine. But going on expensive vacations when you’ve got tons of vacation feels stupid to me.
Best to pay that crap off first! It would bother me too much.
S
Financial Samurai recently posted..The Ideal Mortgage Amount Is $1 Million Dollars (If You Can Afford It)
Sounds like you are having so much fun during your vacation even you have a debt. All of us need a break especially that we are very busy this past few months.
Danyelle Franciosa recently posted..Allkind Joinery Brisbane – Upholding a Proud Tradition
We haven’t had a vacation in almost 3 years and we’re feeling it. Constantly dealing with life/debt/budgeting is exhausting. We have a family trip planned for next summer which we’re looking forward to but we desperately need to get away guilt free for a night or 2, it wares on us.
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