That is such good advice. Maybe I’ll heed it when a loan comes to an end in December. When I was younger, and worked in a bank, everytime a DD or SO ended I just increased my monthly SO to my savings account. That’s why I had so much money and no debt back in my other life.

I’ have said take the holiday! I think they’ve waited long enough.

HAD THE HOLIDAY

Whilst I agree with you, I don’t agree with your reasoning

“it’s the start of a sticky spending slope, as it becomes normal not to
have the cash, so making yourself repay it in future is tough”

It already IS normal not to have the cash. They’ve been paying out £600 a month for years. What difference does 6 more months make?

I agree with you Martin, clearing debts must take priority of fun. If i was in a similar situation then common sense would prevail. x

Great response & quick thinking. We must take responsibility for our actions – but good to have something to look forward to and reward the hard work. I am amazed that you have needed to explain King Solomon though!

i would have put a small amount each month to put in holiday fund then at the end of the seven months the months money would be there to pay for the holiday and still make payments the month they go away so a month not missed mite be hard getting back into routine of paying once had month off payments

Many of you suggesting pay £500 debt off and save £100 to holiday.  The net effect of this is similar to my suggestion – though in mine its a little more controlled as there’s less risk of spending what you’ve saved in the meantime.  Either way is a gud ‘un for me.

I’ve had a few messages about ‘gross comment about babies’ in the title.  Actually this is a biblical referecne, there’s a nice explanation of it here http://www.jlaw.com/Commentary/solomon.html

Great advice Martin, I’m sure everyone who frequents your site will understand the reasoning behind your suggestions. Some would be tempted to see this money as extra and fritter it away, to pay off your debts, have the holiday, then save £600 per month, or better still pay it towards your mortgage, you could get that off your back quicker too. I had money bleeding everywhere before I joined MSE, I was used to the money disappearing every month, I totted up what I was saving, now £200 goes in a wee ISA every month, I never had it so I don’t miss it. So a BIG thank you to King Martin LOL!

Was listening at the time – felt you let them off not having to save for 9 months!

Good advice as normal though.

I think he means it becomes normal to not have £600 of debt paid off every month, if they do this for 6 months then it becomes normal to be paying debt off and then it will be a one-off when they treat themselves, so they will find it easier to go back to paying debt off.

On the other hand, if they took the holiday now then it is continuing to be normal for the debt to not be paid off, so they may find it hard to pay off the debt instead of some other ‘reward’ they haven’t had for a while, e.g. “we’ve had this kitchen for ages, it needs updating” or “we could do with a bigger car” etc, with the reasoning being “well we’ve never paid £600pm off before so another month won’t hurt”.

As a teacher who can only go away at peak times I have not been on a ‘proper’ holiday for 10 years as I refuse to pay the inflated prices in school holidays. I would have told them to take their last, off-peak holiday before their child started school.

Initially my heart said holiday first, then debts. Having thought about it though I personally think Martin is right. Doing it Martins way means going on holiday with a lot less debt worries.

Martin,

That is excellent advice. I am also in the same situation as the caller now. I have considerable debts and I would have loved to go for a holiday before end of summer. My wife always tried to stop me from spending but I never listened to her. Now when I see your point of “making a habit of earn before you spend”, I realize my mistakes I made. I had fairly good income for the past 6 years working life(with occational difficulties). I was never afraid to take loans and use my credit card lavishly because I thought as I was earning quiet well I can comfortably pay back the debts without a problem. There lies the problem-all the 6 years I had debts(and no peace of mind). When I look back I realise the lifestyle and assets I had over the 6 years is way below my income because of the debts. Earning before spending was never a habit for me, hence the difficulties.

No summer holiday this year. I can pay back my entire debts in one year, I am not treating myself before that.

Thanks again, Martin.

Honey, when I went back to work  over 8 years ago, after having my 1st child, I was paying £100 per week for a childminder and that was just for 1 child. Couldn’t afford to go back to work 1 year later after my 2nd, as I would’ve been earning less than I was paying out.