Any disadvantages of paying off cruise early?

[Little Buddy's Mom]

I can give a few reasons:

 

 

- Finally, some people like to make a small payment each month rather than paying everything at the last minute. While I don't buy into that idea personally, and I think that if you "have to" do it that way, you're probably too close to the financial edge to afford to cruise, it's not my business to tell other people how they should manage their finances.

 

 

So, several logical reasons to pay off your balance early.

 

 

I can think of one reason not to pay off a cruise early and it's not the little amount of interest you lose from the money in a money market account.

 

If, you don't pay off the credit card balance monthly, (we do and wouldn't cruise, if we couldn't), the credit card interest could really add up, so why pay the interest on a credit card any longer than you have to? I can't imagine having to pay off a credit card balance for months or years after I've returned from the cruise.:eek:

[sanger727]

I can think of one reason not to pay off a cruise early and it's not the little amount of interest you lose from the money in a money market account.

 

If' date=' you don't pay off the credit card balance monthly, (we do and wouldn't cruise, if we couldn't), the credit card interest could really add up, so why pay the interest on a credit card any longer than you have to? I can't imagine having to pay off a credit card balance for months or years after I've returned from the cruise.:eek:[/quote']

 

Not sure I see the relationship there. IF you can't pay your balance monthly before the cruise, you probably can't after the cruise either. So, ie, if you need 3 months to pay off the balance, and you wait till final payment date, you will be paying for 3 months. If you pay it a month early, you will be paying for 3 months. In fact, this would be better for someone to pay off early, they could break it into smaller monthly payments and then not pay any interest at all.

 

Just as a side note to the OP. I 100% agree with paying at least a week or two early. I used to book with a travel company that takes you cc info for downpayment and then will automatically use that card to pay the final bill on the final day unless they hear from you. Sure enough, last year, between downpayment and final payment I replaced my cc and the card number they had was no good (and of course I forgot to call them). So, I got an auto call on final payment day (and of course a weekend, so couldn't get ahold of travel agency) warning me that my cruise wasn't paid for. And they wouldn't take the payment from me by phone because I had a travel agent. Luckily, they were willing to put a 48 hour hold on it till Monday and I had to call it in ASAP, but it was nerve racking.

Edited October 12, 2014 by sanger727

[artypharty]

Cruise is pretty much sold out so a price drop or upgrades seem slim at best. Thanks.

 

 

I think that is the common thought, it certainly was mine. The cruise I'm going on in a few days has shown sold out for months. Two days ago, I know of at least 5 (including me) people who got upgrades. From insides to OV, up to JS's to OS, with several in between. There are some additional cabins now available for purchase.

 

I think I give up trying to find a pattern. We ARE talking about RCI after all!!;):D

[screamin400]

I think that is the common thought, it certainly was mine. The cruise I'm going on in a few days has shown sold out for months. Two days ago, I know of at least 5 (including me) people who got upgrades. From insides to OV, up to JS's to OS, with several in between. There are some additional cabins now available for purchase.

 

I think I give up trying to find a pattern. We ARE talking about RCI after all!!;):D

 

I guess if the upgrade is a last minute deal then the time of payoff would be mute. My last payment was to be in late Nov. I paid it off. I only did it due to we closed our camp today for the winter and I wanted something to end the day on a little bit higher note. Winters here in upstate NY can get ugly for a long duration. We did the airfare a few months ago and now we will start looking at excursions. We will probably book one a month or so just to keep a little bit of warm weather excitement within us during the dreary winter months.

[Desert Cruizers]

I have a cruise fund set up so when any charges are made to the Credit card, it is paid in full when I get the statement. One exception was this past March & our Australia trip, and am still paying for that one, plus booked one for us for next year. However I have a spreadsheet set up showing the cruise payments, payments to AE and adding to the cruise fund. AE will be paid in full even with the payments adding to it by time we leave. So for a short time my AE card will go up & down. I have set up the payments to next years cruise into 4 payments.

[rtazz17]

Maybe no downside but I will never understand the need to spend money sooner than required.

 

Exactly and........

 

Why let royal hold your money when it can be in an interest bearing account.

 

Same thing with taxes why get a HUGE return and let the government hold and make money on your money when you can put that money to work for you during the year, then pay your taxes off..

 

Dont pay it off it has no disadvantage but it has absolutely no advantage at all.

[Sunny AZ Girl]

I have a few cruses coming up and I do pay them off early. I didn't used to, but now that I get virtually no interest I would just as soon get it paid and not worry about it, rather than shore it up in an account that gives me nada. If the interest rates change, I may go back to my old ways. I do pay off my CC bills each month. I just paid off my May Oasis cruise, which I know is waaay early, but I have a Panama Canal cruise that is quite pricey coming up just a few months after the Oasis and I want to start paying that off a bit at a time. For various reasons I have cancelled a few cruises and RCI gets the money back to you pronto, within a few days. So, I figure I have nothing to lose by paying it off early. I have a travel budget that is separate from my everyday budget and primary savings. So, if I cancel one cruise any money that I had on that cruise just goes directly to another cruise.

[time4u2go]

Exactly and........

 

Why let royal hold your money when it can be in an interest bearing account.

 

Same thing with taxes why get a HUGE return and let the government hold and make money on your money when you can put that money to work for you during the year, then pay your taxes off..

 

Dont pay it off it has no disadvantage but it has absolutely no advantage at all.

 

Bingo! I've never understood why people think that getting a tax refund is a good thing.

[PudgiPoo]

The only reason I see in paying early is the insurance. I get cruise care and pay in with my cruise. I believe this is not refunded. You can just pay the insurance early if you think it is necessary. I have a fun account. It is extra money that I set aside for fun things. It sits in the account until something is due. Why pay it early. I know how much and I know where it is and RC doesn't need it until final payment. Until then its mine.:D

[MrsPete]

I can think of one reason not to pay off a cruise early and it's not the little amount of interest you lose from the money in a money market account.

 

If' date=' you don't pay off the credit card balance monthly, (we do and wouldn't cruise, if we couldn't), the credit card interest could really add up, so why pay the interest on a credit card any longer than you have to? I can't imagine having to pay off a credit card balance for months or years after I've returned from the cruise.:eek:[/quote']I think we'd all agree that NOT paying off your credit card each month is a bad idea, and -- yes -- if you're paying interest on a revolving credit balance, you're not going to save any money. I also agree that if you're dealing with consumer debt, it might be wise to reevaluate whether you should be cruising.

[Little Buddy's Mom]

M

I think we'd all agree that NOT paying off your credit card each month is a bad idea, and -- yes -- if you're paying interest on a revolving credit balance, you're not going to save any money. I also agree that if you're dealing with consumer debt, it might be wise to reevaluate whether you should be cruising.

 

I totally agree with you...

 

Someone mentioned earlier, how they set up a spreadsheet and shift money from one pile to another...

Instead of having a cruise fund, I'd put every dime I could into paying off the credit card and then set up a cruise fund. Most credit cards charge at least 10-20% interest.

 

The OP was asking about paying off a cruise early. I'd say, if you've got the cash on hand, it really doesn't make much difference, when you pay it off. Otherwise, try to put some money away each month, so you can pay off your credit card balance, when the bill comes in.

Edited October 15, 2014 by Little Buddy's Mom

[nolesrule]

You will lose out on the interest on that money for 45 days. At today's interest rate you could be out two cents. That means that the next time you want to offer your two cents worth, you might not have it.

 

Either you have a lousy bank or you get some really great cruise deals. My savings account pays out 2-cents in interest over 45 days on a $23.84 balance.

 

I just don't see the point in paying several weeks early. If it's not going to cost me money by waiting, why hand over my money needlessly?