topic Re: Credit Card Vacation in Credit Cards

Credit Card Vacation

Anonymous — Fri, 27 Apr 2012 00:00:52 GMT

I recently took a vacation to Aruba, (A little present to myself after I took a very very early retirement) and I put everything on credit cards. I paid for the airfare (about $5,000) the hotel ($7,500), car rental ($800), food, souvenirs, entertainment, and everything else, onto my credit cards. I ended up putting myself into over $35,000 of c.c. debt over the course of less than a month. I should have went through my finances before I took the vacation, because a few weeks ago, I paid off my newphew's credit card debt, (which I co-signed, and he was behind on payments) and I paid for a lot of other 'things' on credit. In early march, I had about maybe $10,000 in credit card debt, spread across 3 different cards that I use most. Now, my balances across all cards totals $59,924.32. My Mercedes-Benz Amex card is about $1,000 from being maxed out, and my Amazon Rewards card is $623.11 from being maxed out. And all of my other cards are pretty much half full..

Since I took an early retirement, (I'm just collecting from my 401(k), and my Roth IRA, and my company's pension plan that I had. I don't have any employment income, and it seems like I'm already regretting this retirement.

I think that I need a real 'credit' vacation. WITHOUT ANY CREDIT.

My income is about $9500/month, including rental, my wife's employment income, and my pension income.

How should I go about paying off these cards ASAP without paying a ton of money in interest?

Re: Credit Card Vacation

RyVision — Fri, 27 Apr 2012 00:22:30 GMT

If your home is free and clear, maybe check into a HELOC or 1st, or something along that line considering your rather high score and the low interest rates? Try to live on 20% of your HHI for a while (I don't know the entire story, just that you want the cards paid ASAP) and make large payments towards the cards? At least until one of your current cards offers a 0% deal you might be able to use. That's all I have off the top of my head with what info there was. I hope you decide on something you're comfortable with, but I'd avoid spendy vacations for a while.

Print your post out and put it in your wallet, every time you even think about using a CC for something not totally necessary, take it out and read it to remind yourself.

Re: Credit Card Vacation

Anonymous — Fri, 27 Apr 2012 00:32:19 GMT

I've never been one to make extravagant purchases, but recently, (since I've been home all the time), I find myself always going shopping to waste time, or going out to dinner, or out for meals with my wife. I've never had to rely on credit cards.

Yes, my home is free and clear. I don't want to take out a home loan, but it would be more secure than the credit card debt. I actually own three houses. My house, My parents house, and a rental property. I own my house, and my parents house free and clear, and I have about $100,000 left on a mortgage for my rental house. I would prefer to take out a loan on the rental house. I suppose it's an option..

Bankruptcy sounds pretty good right about now.

LOL

Just kidding. I would never take that route.

I just want to cut up all my cards, and throw them away. they're evil!

Re: Credit Card Vacation

webhopper — Fri, 27 Apr 2012 00:32:38 GMT

Do you have the option of taking an Ira or 401k loan? I would do that and pay me self that interest. At 5% interest to yourself, you may make more from you than with certain less risky investments geared for older folks.

Re: Credit Card Vacation

Anonymous — Fri, 27 Apr 2012 00:37:24 GMT

Well, I'm only 35! I was already at the top of my career ladder, and i wanted to venture out on my own, and start up a finance/investment firm. And by the looks of it, I'm gonna need to get another job, and start off at the bottom again!

Yippee!
(sad sarcasm)

Re: Credit Card Vacation

webhopper — Fri, 27 Apr 2012 00:46:08 GMT

Would your old employer hire you back? If you had an extra 10k a month coming in you'd be able to knock this thing put pretty quickly. And 401k or Ira loans aren't that bad in my opinion. You just lock yourself into a fixed growth rate instead of betting on the market conditions.

Re: Credit Card Vacation

Anonymous — Fri, 27 Apr 2012 01:02:49 GMT

I don't want to go back to my old job. It was a dead end vice presidency position. There was nothing above my position, except the president/CEO, who is also the owner of the company, and would never give up his job. It was just boring...

Re: Credit Card Vacation

aussiesareforever — Fri, 27 Apr 2012 01:07:55 GMT

@Anonymous wrote:
I recently took a vacation to Aruba, (A little present to myself after I took a very very early retirement) and I put everything on credit cards. I paid for the airfare (about $5,000) the hotel ($7,500), car rental ($800), food, souvenirs, entertainment, and everything else, onto my credit cards. I ended up putting myself into over $35,000 of c.c. debt over the course of less than a month. I should have went through my finances before I took the vacation, because a few weeks ago, I paid off my newphew's credit card debt, (which I co-signed, and he was behind on payments) and I paid for a lot of other 'things' on credit. In early march, I had about maybe $10,000 in credit card debt, spread across 3 different cards that I use most. Now, my balances across all cards totals $59,924.32. My Mercedes-Benz Amex card is about $1,000 from being maxed out, and

I remember this post a few months back, I hope you have reduced his $5000 limit to something more prudent for a college student. Kids and credit usually don't always mesh well.

Re: Credit Card Vacation

Anonymous — Fri, 27 Apr 2012 01:07:09 GMT

In most cases, interest paid on your primary residence is tax deductible. HELOC or short term fixed HE loan could take care of the CC debt and give you a deduction. Keep in mind, with a fixed rate loan, you WILL repay all the interest regardless how quickly you payoff the loan

Re: Credit Card Vacation

webhopper — Fri, 27 Apr 2012 01:18:48 GMT

Well, maybe find a new one or get that investment banking thing started! Seems like you need something to do besides shop and moan about the cc balance... I mean that in the best possible way! I know me and Joey would be bored and depressed if we were retired and having cc regrets!

Re: Credit Card Vacation

Anonymous — Fri, 27 Apr 2012 01:18:39 GMT

Yes, I did reduce his credit limit.

He had a balance of over $4,000. I believe that he was about $100 from maxing it out.

I paid it all off, and had his CL reduced to $2,000.

I have him a stern warning that he would get no more bail outs, and he needs to learn how to solve his own finance problems.

(In all honesty, If he were to max it out again, and miss payments, It would affect me negatively, because I co-signed it. So, I would have to bail him out.. again.)

I'm going to go to the bank tomorrow, and see what rates I can get on a HELOC. I could take out a $50,000 HELOC, and pay off the rest from cash..

I haven't even broken the news to my wife yet..
Haha!

Re: Credit Card Vacation

aussiesareforever — Fri, 27 Apr 2012 01:28:01 GMT

I'm going to go to the bank tomorrow, and see what rates I can get on a HELOC. I could take out a $50,000 HELOC, and pay off the rest from cash..
I haven't even broken the news to my wife yet..
Haha!

I presume she went with you on vacation (based on the cost of the plane tickets)...she probably slightly suspects already

Re: Credit Card Vacation

Anonymous — Fri, 27 Apr 2012 01:29:46 GMT

This can't be a serious thread can it? I mean why would you rack up so much "dirty debt" in such a short period of time without the means to pay the balance in full on the due date?

You've out yourself in a situation where you're now having so search for any loan with better terms, but you're still going to be paying more in interest than your investments will be earning.

This can't be serious...

Re: Credit Card Vacation

Anonymous — Fri, 27 Apr 2012 01:36:53 GMT

She knows about the debt, but she doesn't know that I don't have the almost $60,000 to pay it all off! I could just make even $2,000 payments on each card this month, which would be about $10,000, so I would have to take a little bit out of savings to cover other expenses this month. I just don't know how I was so stupid. Vacation was so much fun! But now reality is setting back in!

Re: Credit Card Vacation

arlibguy — Fri, 27 Apr 2012 04:09:57 GMT

My income is about $9500/month, including rental, my wife's employment income, and my pension income.

Is that a typo, $9500 a month? If not, I don't mean to be rude, but what exactly are your living expenses from month to month? Are just you and your wife living off that income? If so I would seriously figure out how to cut expenses. At first glance, seems like you should be able to pay more than $2000 a month given your income.

Re: Credit Card Vacation

beb86 — Fri, 27 Apr 2012 05:11:34 GMT

(Puts popcorn in microwave)

Re: Credit Card Vacation

Anonymous — Fri, 27 Apr 2012 06:31:30 GMT

@Anonymous wrote:
This can't be a serious thread can it? I mean why would you rack up so much "dirty debt" in such a short period of time without the means to pay the balance in full on the due date?

You've out yourself in a situation where you're now having so search for any loan with better terms, but you're still going to be paying more in interest than your investments will be earning.

This can't be serious...

Thats what I was thinking. WHether or not its real it really has no point. If the OP doesn't know the answer to the questions they are asking they probably should have avoided retirement as they don't understand finances.

Re: Credit Card Vacation

Anonymous — Fri, 27 Apr 2012 13:14:00 GMT

Last night when I read this thread, I almost had a heart attack.

Sat down with my coffee this morning, read it again, and I feel the pain again.

I know the old job is boring, but I'll take boring over credit card debt any day.

And for a trip like that, I hope it was something out of The Hangover.

Re: Credit Card Vacation

Anonymous — Fri, 27 Apr 2012 14:33:39 GMT

Enough with the credit/financial implications. What did you spend $60k on!?

Re: Credit Card Vacation

Anonymous — Fri, 27 Apr 2012 15:27:07 GMT

Wow. I am 52 and retired in 2005. It seems to me that you spent your rental house for your various.credit card.adventures. short of selling that and using those funds, you will have to scale way back your life, and what you may be used to. It is amazing how little 9500 a month can seem if it all goes to servicing debt. Like i said, in my opinion, and that is just for what it is worth, you need to sell the rental house, pay off all of the debt with the proceeds.and.scale back your lifestlye to take into account the reduced monthly income from the rents. As an aside, how does.one spend.5 grand on airfare.to.aruba? I could fly there 7 or 8 times i think for that kind of money. Of course i live on the cheap so i can be retired.