Some of you know that my parents and I (and a few other friends and relatives) have been planning a trip to Italy in May. It's going to be an amazing trip and it will cost about $5,000. I don't have $5,000. And considering that I will likely not get a bonus at work this year, I will wind up having to put almost that entire amount on a credit card.
I'm not sure if any of you caught any Oprah episodes last week. I don't normally watch her, but she had this Best Life series last week and dealt with things like health and finances so I recorded them.
Suze Orman was on Wednesday to talk about finances. I'm actually planning on doing a separate post about it as a public service to all of you, but here are a few things that stood out.
She talked about getting honest...that if you are in debt, tell people about it. Make sure YOU actually know how much debt you're in and share the number with people. So, I'm here to tell you that I currently have pretty close to $25,000 in credit card debt. That's only credit cards - not my car loan or anything else like that. $25,000. There it is - in black and white for everyone to see.
Another thing she said was that if you have credit card debt, and if you don't have any savings, then your WANTS should go by the wayside until your debt is paid and you have a savings established.
So things brings me to my Italy trip. It is completely financially irresponsible for me to go. I get that. Oh, and to add to the $5,000 cost of the trip, I won't have enough vacation days at the time of the trip and may have to take some unpaid time at work. This would result in approximately $1,000 of lost salary, bringing the cost to closer to $6,000. I know it's irresponsible. But...it's such an amazing opportunity. It may be the last chance I have to take a cool trip like this with my parents. I may regret not going.
But...it would bring my debt to over $30,000. And honestly, with the economy in the state that it's in, and with me working in the financial industry...the threat of job loss is definitely there. What if I lose my job? It would be an additional $6,000 I'd have to deal with, a larger minimum payment I'd have to come up with every month.
But...what's a little debt when it means an amazing experience with my parents? Who knows what will happen to their health in the next few years? Granted, Italy will still be there next year, and 5 years from now...but the opportunity to go with my mom and dad may not.
So...here's the question I pose to each of you. Should I go...or not? I have to make a decision in the next couple of days and I am torn. I trust the wisdom of each of you and respect your input. I've posted a poll as well, but would love to hear your comments.
Thanks!
5 comments:
Man...that's a hard question. Because I'm all for adventures! And I'm kinda in the same boat, trying to decide if it is financially responsible for me to take out a loan so I can basically go on vacation this summer. And I was totally going to do it! ...but now I don't know...
Well, I don't know what YOU should do, but I can tell you what I would do. I wouldn't go. And it would be so hard to not go, but reality is reality. I totally understand what you are saying about missing an amazing experience with your parents. Still, they didn't get to do it with their parents, did they? If you decide to go, I'll understand. And I'll be glad it's you making the credit card payments and not me:)
I'm having panic attacks for you just thinking about it. And that makes me say that I wouldn't go. I would cry myself to sleep at night but I've learned the difference between crying out of sadness because I've missed out on something and crying out of despair because I can't pay my bills.
If you decide not to go we can have a Fiscally Responsible Jubilee to celebrate your awesome restraint.
I too would advise you to hold off on Italy. Yes, it would be great to go, but just imagine in a few years that you have paid off your debts and saved enough money to go and you will love it all the more. Not to be a bummer--but Serge and I have been researching the Great Depression and I think we still have a ways to go before we see the end of this recession. I have also heard that recently, if you file for bankruptcy you still have to pay back your debts and it ruins your credit for 10 years. Just a thought.
If you do decide to go, I'll still be your friend.
I also going to jump on board with these smarty pants girls. I wouldn't go either. I'm sure the trip would be unforgettable, but I've known financial stress (anyone remember the year of the car from hell- Mazda 6) and I don't think there is anything worse. It really is a time to cut and save and prepare for even harder times ahead. Sorry. I'm usually the irresponsible friend that convinces her friends to skip class and go to Italy, but in the economic situation that our country is in, I think more debt is going to make you happy in the long run. Remember Liz's past Liz and future Liz analogies?
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