Ayla
Well-Known Member
Damn! Whoever is paying 25% APR on their cards needs to find a different one!
-
Welcome to the WDWMAGIC.COM Forums!
Please take a look around, and feel free to sign up and join the community.
LendingTree survey - 45% of Disney-Going Parents With Young Children Have Gone Into Debt for Trip
- Thread starter wdwmagic
- Start date
Disstevefan1
Well-Known Member
As we know Disney is very expensive. For a family with young kids there are many expenses and usually families with young kids are usually newer families and make less money and have little or no disposable income and they do want their kids to experience Disney WHEN THEY ARE KIDS.
Our honeymoon almost 40 years ago was on credit and our first Disney was also on credit but that was a very long time ago and that was when a Disney vacation obviously significantly less expansive.
Today if a young family does not have well off grand parents, with the prices so insanely high today, many have only two choices; don't go, or use credit.
I am sure many on the boards will go on about how irresponsible it is to use credit to go on vacation, and its OK, you do you.
Our honeymoon almost 40 years ago was on credit and our first Disney was also on credit but that was a very long time ago and that was when a Disney vacation obviously significantly less expansive.
Today if a young family does not have well off grand parents, with the prices so insanely high today, many have only two choices; don't go, or use credit.
I am sure many on the boards will go on about how irresponsible it is to use credit to go on vacation, and its OK, you do you.
Chef Mickey
Well-Known Member
Yep, I’m sure it lures ppl but you won’t see rich ppl in general juggling 0% promotions.Soo, in my quest for a perfect credit score, I am faced with a wife who insists on doing the whole "get this credit card for X amount off, a free furbie, and a frapachino". It drives me nuts! My credit score analysis even says basically "stop opening credit cards moron". ...or something like that.
Oh, I left off the lead point, we have money and carry no balances. Those stupid 0% promotions lure in miserly wealthy folk too. Unfortunately.
Now there are financial advisors that will tell you that getting freeis a good reason to play the credit card companies at their own game. Maybe... but I don't have time for that. ...which was your point for me at least.
Sirwalterraleigh
Premium Member
The rates are rather high…it’s been in the news
If your credit is “grandfathered in”…ie pre 2016 stupidity bubble period…you don’t have to worry about that
But younger/newer borrowers?
Where did $6,500 come from?
According to the poll:
When it comes to how much debt they took on, parents of young children took on an average of $1,983 for Disney — the highest across all demographics. Across all Americans who took on Disney debt, that figure was $1,690. (As of June 2, standard date-based tickets for Disney World guests 10 and older start at $109.00 a day.)
Also not in the poll:
Most Americans won’t carry their Disney debt for long. For their last trip, 75% of indebted Disney-goers say it would take (or took) six months or less to pay it off. And 32% say it would take specifically three to six months, the most common response.
dreamfinding
Well-Known Member
My mother in law racked up 20,000 in debt on CCs from WDW visits.
JIMINYCR
Well-Known Member
Not every trip is a carbon copy of the previous. We go to experience new attraction, different shows, new dining spots and menu items. We also add in new tours or experiences we didn’t get to do on another trip.
We also usually fit in a Uni day or Orlando attraction. That is outside the Dis payment but it makes the trip back unique.
Coaster Lover
Well-Known Member
- In the Parks
- No
I mean, let's be honest, most American's aren't great "savers" and the general mentality (for any big purchase... I mean, it's practically encouraged be it for a car, or new appliances, or home upgrades... even PayPal gives you the option to pay over time) is to buy now and pay later. Is it really any surprise that a Disney trip would be any different? Me personally? I budget for EVERYTHING (Christmas, Vacations, Birthdays, etc.) and I generally only put on my credit card what I already have in my bank account so I can pay it off immediately (we have general plans for vacations for the next three years so we can be sure we are putting aside enough cash now to cover expenses later), but I know that I'm by far the exception and not the norm...
Sirwalterraleigh
Premium Member
…but that bacon was SOOOO GOOOD
Sirwalterraleigh
Premium Member
The point is not that they’re identical…it’s that the desire/“craving” that drives them is.
Sirwalterraleigh
Premium Member
So people don’t lie about paying off their debt?
I think we’ve officially heard everything now
Check that box
I think we’ve officially heard everything now
Check that box
John park hopper
Well-Known Member
When interest rates on savings accounts are next to nothing where is the incentive to save, it takes work to make your money grow and most people don't have the disposable income in this great economy(sarcasm)
JIMINYCR
Well-Known Member
And a wife of a friend maxed out her cards on Amazon, casino slots and e-bay. Trashing their credit and putting them in a hole without his knowledge that’s quite impossible to get out of.
Disney isn’t unique in people spending what they can’t afford. Dis isn’t any different than any other business that advertises to the consumer to bite. Where personal responsibility ? They are playing the advertising game that’s been employed since Adam and Eve. Set out the line and see who bites.
Chef Mickey
Well-Known Member
National credit card data doesn’t agree with 2,000 Disney responders who probably do intend to pay it off, but won’t. Everyone “says” they’ll pay it off. If they did, we would not have $1.1T in credit card debt in America.
“Would take” is not reality.
Or are you trying to argue Americans handle credit cards well?
Sirwalterraleigh
Premium Member
Like the San Fernando valley Adam and Eve?
Wendy Pleakley
Well-Known Member
In general, taking on debt to go on vacation isn't the ideal choice. Especially since it implies those individuals might have zero other savings on hand for an emergency.
However, a few hundred bucks in interest isn't the end of the world. If it happens to be the right time, the kids are the right age, whatever, I don't think it's huge deal. The article says average debt is under $2,000. That's manageable for most people.
A lot of it depends on personal circumstances. I have a government job that is reliable. I'm in no danger of being laid off from work. If I were to borrow $2,000 for a vacation I'd know exactly how long it would take to pay off and what the interest would amount to.
Someone in a more precarious employment situation might think differently.
However, a few hundred bucks in interest isn't the end of the world. If it happens to be the right time, the kids are the right age, whatever, I don't think it's huge deal. The article says average debt is under $2,000. That's manageable for most people.
A lot of it depends on personal circumstances. I have a government job that is reliable. I'm in no danger of being laid off from work. If I were to borrow $2,000 for a vacation I'd know exactly how long it would take to pay off and what the interest would amount to.
Someone in a more precarious employment situation might think differently.
dreamfinding
Well-Known Member
It’s not different than Amazon or maxing out a card for clothes or anything else. I guess it’s an addiction that some people can’t handle (again, like anything else).
Coaster Lover
Well-Known Member
- In the Parks
- No
I mean, 2-3 years ago that would be true, but right now, at least in the U.S., High-Yield Savings Accounts are plentiful! It's pretty easy to find a high yield savings account that will net you 4-5% interest! And if you have the free cash, CD interest rates are up there as well... can lock in a 5% interest rate for a year with most banks on a 12 month CD! Not trying to provide financial advice, but if you have the disposable income (which I realize many people don't) there are LOTS of easy (low/no risk) ways to make money off your money now!
JIMINYCR
Well-Known Member
I don’t disagree that some crave Disney trips. They enjoy the parks , experiences not found elsewhere. But that wasn’t what I got from his post.” Going into debt for the same trip”… They can be very different.
I crave Big Macs but I don’t have to dine on them every day. I know what doing that meal over and over will do to me. Don’t blame Dis entirely because they are expensive and good at promoting their parks.
Wendy Pleakley
Well-Known Member
Numbers will vary, but that example points out that financing a vacation might make it only 5.61% more expensive, which is probably reasonable for most people.
It can be a slippery slope though.
People see that relatively "small" monthly interest fee as manageable. I used a line of credit to pay off a car loan easier and I think I paid $100 or so a month when it was in the $10,000 range.
That feels like a small price to pay to have access to those kinds of funds, but people don't realize how it adds up over time or the impact of having to pay down a debt every month.
It made sense for me just to manage a large purchase but I'd be hesitant to finance a vacation that way.