Downside to paying off cruise early - yes or no?

[HighlandBoy]

Have you never heard of interest bearing accounts?

 

Great if you can get one, but here in the UK for example my bank has just changed the interest on my account to 0.1% :eek: not much reason to keep it in the account in my opinion.

[Snit13]

Have you never heard of interest bearing accounts?

 

 

like my youth, they are basically a thing of a previous life. The small amount one earns is not worth the worry. Can't even find a decent interest on a CD anymore. I normally pay off my cruises a week or so in advance of final so I don't forget. Just mark it on calendar as a reminder then call my CVP or C&A and pay.

[hapster85]

It's your money, so if paying it off early give you peace of mind, do it. I made multiple payments for our Anthem cruise last year, because it made me feel better knowing the balance was smaller. My SIL felt the same and also made multiple payments for her portion.

 

I also intend to make a few early payments for our Adventure cruise booked for next year.

[baileymouse]

Did your travel agent give you some extra on board credit? I recall that Royal was offering significant on board credit to get some people to pay off their cruises early.

Nope, didn't get anything extra and when I questioned it, I received a generic reply about the TA requiring it so that they can make sure final payment goes through. I'm rather vexed & I am thinking of going back to my previous, problem-free TA site.

 

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[John&LaLa]

Nope, didn't get anything extra and when I questioned it, I received a generic reply about the TA requiring it so that they can make sure final payment goes through. I'm rather vexed & I am thinking of going back to my previous, problem-free TA site.

 

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Our TA has a payoff deadline about 15 days before Royal

 

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[jamesr3939]

Our TA has a payoff deadline about 15 days before Royal

 

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That's called "float" and they make the interest on your money.

[John&LaLa]

That's called "float" and they make the interest on your money.

Less than a dollar most likely. I think I can forego that.

 

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[Ourusualbeach]

That's called "float" and they make the interest on your money.

 

I've never used a TA but I thought that I'd read that when you make a paymemt the TA never actually sees that money but instead the TA just uses your credit card to make the paymemt direct to Royal.

It was my understanding that most TA's want the payment early in case there is an issue with the credit card then they have a chance to get the issue resolved prior to the actual final payment date.

[time4u2go]

ECO 101 ... Never pay until it's due. ;)

Exactly. Why let someone else use your money when you could be putting it to use?

 

Along the same lines, I never understand why people think getting an income tax refund is a good thing. It just means the government has been holding on to your money that you could have been investing.

[MrsPete]

I always pay about 30 days before final payment so any issues can be sorted out should they arise.

I do the same thing.

 

Things don't go wrong with payments often, but I like to be SURE that everything's good with my cruise payment.

 

Also, if you wait 'til the last-last minute, things can happen; for example, I recently had a horrible stomach flu and was barely human for three days ... if my cruise final payment had fallen in those three days, yeah, I could easily have forgotten it.

[Clarea]

I've never used a TA but I thought that I'd read that when you make a paymemt the TA never actually sees that money but instead the TA just uses your credit card to make the paymemt direct to Royal.

It was my understanding that most TA's want the payment early in case there is an issue with the credit card then they have a chance to get the issue resolved prior to the actual final payment date.

That is the case with our TA Ken. I guess we've been with her so long that she does not expect any problems, so her final payment date is the same as Royal's. We still usually pay a week or two early.

[island lady]

I always wait until the last day (or a few days after my credit card payment date ;)).

 

No reason for me to pay off early. Plus if there is a price drop before final payment date, it is much easier to have my balance owed reduced, than the hassle of crediting back my card.

[swoopy2110]

I've never used a TA but I thought that I'd read that when you make a paymemt the TA never actually sees that money but instead the TA just uses your credit card to make the paymemt direct to Royal.

It was my understanding that most TA's want the payment early in case there is an issue with the credit card then they have a chance to get the issue resolved prior to the actual final payment date.

 

Interesting. In the UK when you pay at a TA, the moeny goes to the TA who is then responsible for passing it on to Royal

[FLSteve11]

That's called "float" and they make the interest on your money.

 

Not if they pay the cruise off, the money is in Royal's hands.

 

The much more likely reason is they don't want to be scrambling if the clients credit card gets declined and then have to track down the client and get alternate payment methods. (And then find the client doesn't have one, and doesn't have the time to get the money before the cruise gets cancelled and they lose the sale).

[FLSteve11]

I've never used a TA but I thought that I'd read that when you make a paymemt the TA never actually sees that money but instead the TA just uses your credit card to make the paymemt direct to Royal.

It was my understanding that most TA's want the payment early in case there is an issue with the credit card then they have a chance to get the issue resolved prior to the actual final payment date.

 

Most TA's do that, certainly the smaller ones do. The card is actually charged by Royal, the TA is just doing the work of contacting Royal with the information to get it charged as part of their service to the client. And yes, the ones I know that's the reason they do it. If the card gets declined for some reason, they have time to contact the customer to get it fixed before it's cancelled.

[FLSteve11]

Exactly. Why let someone else use your money when you could be putting it to use?

 

Along the same lines, I never understand why people think getting an income tax refund is a good thing. It just means the government has been holding on to your money that you could have been investing.

 

I think that was more useful when you actually got some interest on your money. Now paying 30 days out is no big deal, you can't do much with it in that time.

 

I find the ones who are excited by the refund, are not the one who would have invested their money anyway, they would have spent it (and then proceed to spend their refund as well) :)

[time4u2go]

I think that was more useful when you actually got some interest on your money. Now paying 30 days out is no big deal, you can't do much with it in that time.

 

I find the ones who are excited by the refund, are not the one who would have invested their money anyway, they would have spent it (and then proceed to spend their refund as well) :)

If you are only thinking of interest as in a CD or money market or other bank account, then I agree. However, there are many other investment options that can provide a significant return on your money.

[mfeld]

If you are only thinking of interest as in a CD or money market or other bank account, then I agree. However, there are many other investment options that can provide a significant return on your money.

 

Why would you pull money out of an investment account to pay off a cruise? That seems silly, any investment account that is aggressive enough to make significant money off of is a risk. You could lose money if the market or markets you are invested in takes a dive. Personally I prefer to pay off my cruises in increments out of my checking/spending account (not my savings account) and money that I invest stays as an investment until I'm ready to retire or make a big purchase like a home or starting a business.

[rtazz17]

I never do.No reason to pay early.Anything could happen.Illnesses etc.Just becomes harder to get money back.Keep in bank and collect interest.

[pspercy]

I always pay about 30 days before final payment so any issues can be sorted out should they arise. Having said that, I paid off my TA for next April already because I wanted to take advantage of the 60,000 mile delta amex bonus. One way flights from Rome to JFK were over $2000/ea last time I looked. Signed up for the card, paid off the cruise, paid off the card, got my miles and paid for my flights with them

 

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ChoiceAir usually has great international one-way fares:D

[time4u2go]

Why would you pull money out of an investment account to pay off a cruise? That seems silly, any investment account that is aggressive enough to make significant money off of is a risk. You could lose money if the market or markets you are invested in takes a dive. Personally I prefer to pay off my cruises in increments out of my checking/spending account (not my savings account) and money that I invest stays as an investment until I'm ready to retire or make a big purchase like a home or starting a business.

If you can leave the money in the investment as long as possible, historically, you'll come out ahead. Obviously there's going to be times when that's not the case, but over the long run, it's better to leave the money in.

 

Now if that money is the only money that one has available to pay for the cruise, then of course one shouldn't risk it.

[George C]

I never do.No reason to pay early.Anything could happen.Illnesses etc.Just becomes harder to get money back.Keep in bank and collect interest.

 

We agree, I pay it off just before deadline and normally buy insurance at that point

[Oak Hill Cruisers]

For RCI and most other lines, we usually pay at the final payment deadline.

But, for world cruise sailing in January 2018, HAL gave a 5% discount on the cruise fare if we paid in May 2017, which we did. Sort of like getting almost $2K in OBC.

[happymanitee]

I just paid off my cruise early because I'm trying to get the frequent flyer points from my credit card. I plan on using those points to book our airfare for the cruise.

 

... just another reason why someone might pay early.

[molly361]

I like to make payments on my cruises. For some reason a couple of hundred dollars every other month or so seems to work better for me than paying a larger lump sum.