Paying in full early? Advantages? Disadvantages?

[dulcimergirl]

Here's the deal, I've had this cruise booked since the WOW sale last October. I'm down to 100, and I can pay it off or wait until July when the final payment will be automaticely made.

Just curious. Thanks!

[paul929207]

I don't think cruise lines offer discounts for early payment. So the only advantage is that you can't spend the money and come up short.

 

The only disadvantage is that you would lose the huge float you would get on the money. Maybe as much as 3 cents.

[lady_cruiser]

I like to pay my cruise off as soon as I can. Sometimes a year in I like to pay my cruise off as soon as I can. Sometimes a year in advance. First of all, my credit union does not pay any interest on checking account balances so I am not losing money there. By paying it off early I won't be tempted to use that money during the year on something frivolous and then find myself coming up short on finances as the payment dead line comes near. And it gives me time to save extra money during the year to use for spending money; paying off my sign and sail card, using it towards excursions or buying a little something special in one of the ports-of-call.

[Hlitner]

We have booked many cruises (stopped counting after 50) and generally do not like to make a final payment more than a few days before the due date. Why? Simply because cruise lines will often change the price of a cruise (sometimes multiple times) and as long as you are outside the final payment period it is usually possible to get your fare reduced and than your final payment is adjusted. If you have already made that final payment you have less leverage over the cruise line who may refund your money (which can take months), might refuse to refund your money and perhaps offer you an upgrade you don't even want, etc. I guess my financially oriented mind always tells me to follow a basic financial standard which is to pay your bills on-time but do not pay in advance unless there is a specific benefit (such as a discount for early payment).

 

Hank

[lady_cruiser]

We have booked many cruises (stopped counting after 50) and generally do not like to make a final payment more than a few days before the due date. Why? Simply because cruise lines will often change the price of a cruise (sometimes multiple times) and as long as you are outside the final payment period it is usually possible to get your fare reduced and than your final payment is adjusted. If you have already made that final payment you have less leverage over the cruise line who may refund your money (which can take months), might refuse to refund your money and perhaps offer you an upgrade you don't even want, etc. I guess my financially oriented mind always tells me to follow a basic financial standard which is to pay your bills on-time but do not pay in advance unless there is a specific benefit (such as a discount for early payment).

 

Hank

 

AHHHH, but in the case of Royal Caribbean's Cruise Line I can get an OBC after final payment is made. And sometime this can be up to $800 or more. One person here at CC just got $1200 in OBCs due to price drops and needed advice on how to best use this. Even if it means that I would need to get cash out at the casino and take the 3% penalty at least I will still be getting cash back.

[cb at sea]

I don't like giving others my money before it's due....even the little bit of interest you might get is better for YOU to have, than the cruiseline!

[poobears]

We pay ours off as soon as possible. Sometimes at the time we book. One less thing to worry about. But we also prepay our excursions, put money on our ship account etc.

[bbwex]

As for us, if I can put down $750 per person, and keep $4K or $5K in my investment account for nine months, I will do that. If you worry that something could come up and prevent you from paying when the time comes, then do what you feel you need to do. It is only my opinion, but I would never pay anything in advance if you don't get a benefit from doing so.

[Waynetor]

The OP doesn't indicate were they live but if a Canadaian paying is US funds then when to pay is a gamble on when the exchange rate would be best.

Also if booking cruise line air then the air price is not guaranteed until final payment is made. Paying early would lock in the air fare.

Wayne S.

[HamburgAvonLady]

:mad: PLEASE, PLEASE do not fall for the generous OBC's being offered by some online travel agencies if you pay in full at the time of initial reservations. A fair number of us have

fallen victum to a very unscrupulous TA based in Florida

who is now bankrupt. (Or so we have been told - however, some of the same agents are doing business under another name). Also, don't think that paying with ones' credit card will protect you -- any disputes must be

made within 60 days of initial payment NOT when the

actual departure of your cruise occurs. Learned a very

hard and expensive lesson this past Jan.'09. You may also want to read Kween Karen's posts regarding her South Pacific/Australia cruise on the HAL Rotterdam this

past Sept. '09. JMO :(