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Is a holiday worth going into serious debt for?

Discussion in 'Personal' started by Jamvic, Jul 16, 2020.

  1. Jamvic

    Jamvic Star commenter

    I do feel for the couple in the article below and the thousands of others in similar positions. They are struggling to get the holiday refunds they are entitled to and, in the case of this couple, have employment
    woes due to Coronavirus.

    However, the fact that they remortgaged their house to be able to afford this holiday in the first place really shocked me.

    If I couldn’t afford a particular holiday without the aid of a secured loan then I’d either do without for a couple of years to save up enough money or accept that this exact holiday experience was out of my price range and go elsewhere.

    It seems less than responsible to risk your family home for such a transient luxury.

    Lynn and Martin Fox had remortgaged their home to pay for a holiday of a lifetime with their two children in Florida, only for coronavirus and bad luck to ruin their plans.

    The couple finished paying for the holiday in January, but Mrs Fox, 42, then lost her cabin crew job at Flybe when the airline collapsed in March. Weeks later, as the virus lockdown took hold, work dried up for her husband, a pipe-fitter. Then the holiday, planned for late April, was cancelled.

  2. Jamvic

    Jamvic Star commenter

    I’m surprised they even got a secured loan agreed for the purpose of paying for a holiday. I would have thought that most banks wouldn’t accept this as a sensible reason for approving a second mortgage.
    Jolly_Roger15 and needabreak like this.
  3. minnie me

    minnie me Star commenter

    No. I struggle with the notion of a ‘ holiday of a life time ‘... good times are something you roll into and can’t be ’ manufactured ‘ if you ask me ...Agree shortsighted but again the story makes a headline ...
  4. Jamvic

    Jamvic Star commenter

    To be fair the bulk of the article, and the headline, is actually about the 1000’s of people not getting the holiday refunds that they are entitled to and what’s being done about it. The remortgaging your house to pay for a holiday bit seems to be just a throwaway fact in the personal example at the start of the piece.

    I think that’s why it shocked me, it’s mentioned casually as if it’s a fairly commonplace thing to do.

    I would consider a second mortgage to be a really serious consideration and not a suitable borrowing option for an unnecessary luxury as it puts your property at risk if you ever face difficulties with repayments. If you were using a secured loan to add a new kitchen, bathroom or extension for example you are, hopefully, adding value to the asset you are borrowing against so you, again hopefully, see that money returned when you sell.
    Jolly_Roger15 and needabreak like this.
  5. burajda

    burajda Star commenter

    Ive been lucky to have been able to have great holidays in far away places including The US and the Maldives. But my sister came round last year and asked my kids what their favourite holiday was. 'When we went to Devon' they both replied.
    No, I'd never remortgage my home to pay for a holiday. Remortgaging also suggests a situation where other credit options and loans cannot be obtained or are maxed out. Totally Irresponsible.
  6. wayside34

    wayside34 New commenter

    Is a holiday worth going into serious debt for?. Never in my book. After reading the article as mentioned the bulk of of it is about refunds. I am waiting for a refund from Virgin Atlantic this has been going on for 3 months, I have now put in a section 75 claim with my CC provider.My claim is for flights only nowhere near the £6700.00 mentioned here. I will never book with V.A again after this shocking lack of service, I visit USA twice a year to visit family, sadly not this year due to Covid 19.
    Jamvic likes this.
  7. MrMedia

    MrMedia Star commenter

    It is less about the holiday and more about a risky decision. Making decision which affect finances are about weighing up risks. We don’t teach this at any part of our formal education and it’s not really part of our culture. Unless you have formal training or you like to get involved with Martin Lewis' website then risk assessment of such decisions is quite hit and miss.
  8. peakster

    peakster Star commenter

  9. WB

    WB Lead commenter

    Borrowing against the house for a holiday is stupid.

    I'm a bit suspicious here.

    The holiday was booked for April. Were holiday companies cancelling holidays to the US then? The article just says the holiday was cancelled; it doesn't say who cancelled it. If they cancelled it because she lost her job (I'm genuinely sorry about that) then the holiday company's refund policy kicks in and if you cancel close to the travel date you don't get much back.

    The couple seem to want us to believe that the holiday company cancelled on them due to covid and didn't won't to refund - I'm not sure that happened.

    I tend to find in life that unreasonable people who shout and stamp their feet get want they want even if they don't deserve it.
  10. bombaysapphire

    bombaysapphire Star commenter

    A few weeks of pleasure for months of worry about paying for it. No thanks! I wouldn't enjoy a holiday that required that type of borrowing anyway.
  11. Lara mfl 05

    Lara mfl 05 Star commenter

    I'm actually in shock that anybody would think of remortgaging for a holiday :eek:, could ever be considered.
  12. knitone

    knitone Lead commenter

    Borrowing on such a large scale for a holiday seems to represent a huge culture shift from my upbringing. Holidays were a reward for a year of hard work, saved for, and paid for out of that year’s hard work. The idea of enjoy yourself now and scrimp and save later seems counterintuitive. I certainly couldn’t relax and enjoy myself knowing that I was now committed to extra repayments and, therefore, reduced disposable income.
  13. peakster

    peakster Star commenter

    Most people would have more sense to do that.

    If the story is true.

    Did anyone see the interviews with the two lovely young people who have just lost their jobs on BBC news this morning ?


    ..and then shortly afterwards Alok Sharma came on and said absolutely nothing - as he has been expertly trained to do.
  14. sbkrobson

    sbkrobson Star commenter

    Actually, I don't see them as struggling.
    This couple love to be pushy with paper work and phone calls in order to get as much as they can.
    First of all, they arranged the remortgage.
    They also later arranged for universal credits and grants when they realised their employment position.
    They then arranged for Which? to handle their complaint, with the result that they have secured a refund within the next few days. This is a charity who over the course of the Corona episode, have reviewed more than 12.000 unresolved cases of pursuing holiday refunds. And yet the Foxs got them to act on their behalf.
    They also arranged for the story to get into the BBC news, where they feature prominently.
    When interviewed the Foxs do not plead poverty or hardship. What Mrs Fox expresses is annoyance at the holiday company not giving them an actual date for a refund. If they had a date, they'd be able to plan, she said.
    I don't feel sorry for them at all because they will possibly continue to push and push for every single penny they can squeeze out of every single situation. They spend a lot of their time doing this. It is what makes them happy. Or one of them. For when quoted, Mrs Fox does complain that "My once in a lifetime holiday has been cancelled".
    Poor kids? Who knows.

    Many people who are waiting for a holiday refund are waiting for a smaller amount and will wait longer and will be in actual hardship because they are not strident and feel they have to be nice. In the Trash Reality Show which has become out of BBC news these days, they would probably get my sympathy vote.
  15. gainly

    gainly Star commenter

    I usually ask my students about their holidays. Many are lucky enough to go to quite exotic places and are almost always very unenthusiastic about them. The only time I can remember a student being really enthusiastic is when the family had gone to Scotland and they'd all climbed Ben Nevis.
    abwdSTEM, alex_teccy and Jamvic like this.
  16. peter12171

    peter12171 Star commenter

    Is anything worth getting into serious debt for? People seem to live by getting into debt now, and we ought to be teaching people to live by their means whenever possible. If you can’t afford something, get something less expensive or put it off for a while unless it is essential.
  17. sbkrobson

    sbkrobson Star commenter

    Of course you are right.
    Listen carefully.
    Did you hear that? That is the gentle click of all the sofa shops locking their doors after closing down for good.
  18. Jamvic

    Jamvic Star commenter

    Phew! I thought I was just being a miserable old fart again :D.

    I’d not analysed it as closely as that, but I can’t disagree with any of your observations.
    nomad, sbkrobson and Lara mfl 05 like this.
  19. foxtail3

    foxtail3 Star commenter

    A holiday, as far as I’m concerned, is something you are either prepared to save for, without impacting other expenses, or that you have the disposable income to spend, without having to save.
  20. mothorchid

    mothorchid Star commenter

    Some years ago I knew a young family. Sadly the mother had terminal cancer and they took out a large loan so they could take their three boys away on "the holiday of a lifetime". Mum died about a year later. Dad spent the next four years struggling to pay off the loan and taking on loads of overtime to do so. I think the boys would have preferred to see more of him. Added to which, the youngest two boys were so little when they went away on this fabulous holiday that they had no memory of it.
    It's a really sad story.
    These days, debt seems to be a normalised part of life from very early in adulthood, what with student loans and credit cards, not to mention cost of renting and buying a house, the highly curated social media lifestyles which younger people arre presented with and which seems to be seen as desirable. And so on. I worry about their apparent lack of ability to go without. I suppose if you already owe £35 000 on a student loan, then £18 for a cocktail on your credit card seems like nothing.
    Last edited: Jul 16, 2020

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