Post # 1
Hi bees –
let me say first off that i am not a person who likes debt. My credit cards are paid in full every month, and every wedding expense FI and I have paid and will pay in cash. We’ve worked hard since our engagement (Sept ’10) to put aside money every week so that all our expenses and incidentals would be covered. We can’t realistically put away any more than we already are a week, we have a sizable mortgage (damn Sydney housing market) and unexpectedly needed to replace our bucket of a car a few months back, so we’re making small monthly payments on that as well. We are living fine, not really above or below our means, and putting aside enough for our dream weding in dec.
The problem is that both of us want a lavish honeymoon. Ideally we want to go to the Maldives or Mauritius and just live it up for 2 weeks. We aren’t ostentatious or showy people, and we harldy ever take holidays (all our extra money is usually earmarked for trips to Canada, where my family lives..technically a holiday every year but not really!). It seems at this point that we won’t be able to afford the honeymoon we want, and we are considering taking out a line of credit or a personal loan to do so. Our jobs are secure (high school teacher and university academic 1 year from professorship), so i know we can continue to put aside money like we are now and have say a $10000 line of credit paid off within a year or two.
Most of my friends had very modest honeymoons and now ALL of them are saying to go into debt, and live it up, cause its the only honeymoon we’ll ever have and we can take years to pay it off if we want to. All of the ones who did “mini-moons” or compromised on what they wanted ended up regretting it – literally every single one i’ve discussed it with.
What would you do?????
Post # 3
I say do it. If you already have a house and don’t think paying it off will truly burden you, go for the honeymoon! Seems like you’re financially responsible already!
Post # 4
What I would (and did) do isn’t really what I think everyone should do… we did NOT go into debt. We did what we could afford (which was a nice but not lavish) honeymoon. Which made sense for us because my job is not super stable and draining our savings or going into debt would cause me so much anxiety the trip wouldn’t even be worth it to me. I just get so much satisfaction from having financial security that for us, it made sense.
But you’re not me. If your jobs are stable and having a 10k loan wouldn’t stress you out– i say go for it! In theory I see nothing wrong with this. I’d rather go into debt for a honeymoon than a wedding actually! The memories you’ll have from the trip will last a lifetime– so if you and your husband-to-be are comfortable with it, I say go for it!
Post # 5
Personally, what I would do is wait and save for a honeymoon. I don’t have a very stable job at the moment and we have a mortgage and car debt. The last thing I want to do is have to take on more debt. We are very lucky in that we are being gifted a honeymoon to Mexico. Not our first choice but never the less a lovely gift. We are taking a mini-moon to Edmonton as both FI and I love that city right after the wedding just to get away.
In 10 years we hope to plan an anniversary trip to Europe once we are slightly more stable.
Post # 6
I would go on a smaller trip now, then save up to pay for a lavish vacay for our anniversary or something. I honestly dont think it will be worth it to go into debt. You never know what emergency can come up and change your financial situation. You also have to think about the interest.
Post # 7
I personally would not do it…I know myself, and I would have a hard time enjoying the honeymoon knowing that I’d be paying for it for months and months afterward. Go on a little mini-moon, save up money, and do the big trip for your one year anniversary!
Post # 8
We’re not going on a honeymoon as of now to avoid having to go into debt. I wouldn’t do it 🙂
Post # 9
I think it depends on how much debt you are talking about and if you will be able to fit it into your monthly budget. I had my once in a lifetime honeymoon, after all was said and done we spent about $16k for two weeks at some of the most amazing resorts in Fiji. We ran about $4k short when the time came, so we changed the rest and paid it off with wedding money when we got back. But if you can afford it, I would say go for it!
Post # 10
I wouldn’t do it. Unless you were sure of a guarenteed big raise in the future. If you have to go into debt for a honeymoon, then what other thngs you may need in the near future. Will more debt have to be created for that? I think its a slippery slope to get started on. Do you have a safety net savings? You can always do a lavish vacation later when you have the money for it.. it doesnt *have* to be the honeymoon. On the flip side, other things in the future (like children) may make you feel guilty about spending the money, so maybe this really is the one good chance to just go all out. If you’re comfortable with the debt and really think its worth it and would not be able to do something like this in the future…. then, sure, why not?
Post # 11
If you are uncomfortable with a lot of debt, Can you do a 1-week lavish honeymoon?
Since you have a house, steady job and a history of saving money (meaning you have the ability to save thus the ability to pay off debt), I say go for it!
Post # 12
A lot can happen in a year or two – I’d start a vacation fund but wouldn’t go into debt over a vacation. Lots of people WANT a lavish vacation – that doesn’t mean it’s the best choice for them if they can’t afford it.
Post # 13
There are other options here. You can register for a “honeymoon fund” instead of a traditional registry, where your shower and wedding guests can contribute toward your honeymoon. You can also sell items on e-Bay or other sites to raise a little extra cash, or have a garage sale or something. You can take on some part-time work. I know these will not make up the whole amount of a lavish honeymoon, but can help you build up a little cash towards it.
Post # 14
Please don’t do it! Your friends might be telling you to spend, but they’re not the ones that will have to deal with the debt later. Remember, jobs aren’t the only possible losses you might experience- what if something happens to a family member in Canada and you need to fly out there? What if you need to replace your roof or a flood destroys your belongings? Are you already fully funding retirement/ life insurance/ home insurance? You’re already in house debt/ car debt/ (student loan?), adding another $10,000 is a lot for a newly married couple.
Post # 15
I’m in a similar situation as you. We have a reasonable mortgage and a nice wedding savings, an emergency fund, and retirement accts. We have no other debt besides our student loans (jsut mine and it’s small). We have a vacation fund we are using for our honeymoon, but we won’t have enough for our “dream” honeymoon (after all, the amount we save in that fund is what we use for our yearly vacations). I refuse to use our emergency savings acct to pay for our honeymoon, and we want a nice honeymoon. I think in the end we are going to bite the bullet and put our honeymoon either on a personal retirement loan or low-interest credit card but….
We are coming up with two payment plans first. One which will be our “ideal” payment plan, and one if we run into financial set backs (ie, needing to cut back on payments or make just the minimum for a few months in case we needed to). We are also not going to borrow any more than 25% of what we have in our emergency fund in case heaven forbid one of us lost our jobs and we needed to pay that back in full with less income. That way we will have peace of mind financially, but we can take our dream honeymoon too. It’s really about what you can afford, and the only way you can figure that out is by sitting down and looking at your budget/savings/debts and seeing what is realistic for you. Debt isn’t bad, as long as you have (realistically, even with life’s curve balls) the means to pay it off.
Post # 16
@MrsDulce: thanks for your information. Its weird to even be discussing it, cause my fiance and i are both tight asses when it comes to most other things…but what we’ve always agreed on is that we want an amazing honeymoon, and we’re willing to take a while to pay it off. I like the idea of 25% of your emergency funds – for us that wouldn’t be enough (both because our emergency fund is smallish at the moment and the honeymoon we want is expensive)…
We’ve gone back and forth on this so much, and we still haven’t made a decision. The more i look at resort websites though, the more i want to…