Do you pre-pay everything?

[yuccaman]

Yes, and there's no good on-paper black and white economic reasoning possible. It's just a nice "it's all paid" feeling before boarding. Simple as that.

[Moviela]

The discount on the gift cards is factored into the price of the cruise. You are not saving all that you can. For example I use a discount travel agent that shaves roughly 11% from the cruise portion of the fare. (Taxes and port fees are not discounted or commission able.) You can also buy from Costco at the same price as Carnival lists including Rate Codes, and get a Costco cash card when you return.

 

I see no reason to pay a bill that has not come due with exceptions for advantage to me. Take rental cars. Rent one in Europe and pay a kings ransom, however, some agencies will discount 50% is you pay 21 days in advance. Sign me up for that. A hotel in Hong Kong is the same price if prepaid or at check out. Save the transaction for later.

 

I will probably always end up with a balance on the sign and sail, so why not pay tips after the service has been delivered?

 

I was curious why people book more than a year ahead. Then I discovered you can't get decent digs if you don't jump on it. I saw the Horizon on a visit to the shipyard in Italy, and thought I'd like a suite on her for an early voyage. I found out I had to book when first listed to get a desirable suite. Who knew? I am new to cruising. Just entered my second year.

[firemanbobswife]

The discount on the gift cards is factored into the price of the cruise. You are not saving all that you can. For example I use a discount travel agent that shaves roughly 11% from the cruise portion of the fare. (Taxes and port fees are not discounted or commission able.)

 

 

I don't agree with this. The gift cards are absolutely not "factored into the price of the cruise."

 

I'm no mathematician, but let's take a look. So say the fare is $1000. Taxes/port fees/gratuities are $200. If I pay with gift cards, I will only need to pay $880 if I got them for "only" 10% off because taxes/port fees/gratuities can all be paid for with gift cards. You book through your TA at 11% off the $1000 which is $890 and then you must still pay full price for taxes/port fees/gratuities which is another $200. So I'm paying $1080 and you're paying $1090. So while it may not be a huge savings, it is still savings nonetheless.

 

And again, that's at only 10% off. I have gotten them for 15 and 20% so then my total out of pocket is $1020 and $960 respectively.

 

Someone please correct me if I'm doing it wrong. Math was never my strong point and it is super early in the morning.

[deborahjo]

So those using their credit cards. You would rather pay the interest on a credit card then per paying to Carnival. Makes no sense to me.

 

 

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[LMaxwell]

So those using their credit cards. You would rather pay the interest on a credit card then per paying to Carnival. Makes no sense to me.

 

 

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Haven't paid one cent of interest to a credit card company in my life and I use my credit card for everything. Wish I could use it for my mortgage. Pay the balance every month and / or take advantage of card offers with 0% for signing up (usually 15-21 month periods). I'll make bigger purchases on one of those and divide it out so it is paid off while still at 0%.

 

In terms of rewards/points/cash back; I am getting thousands of dollars per year in discounts, kickbacks, and rebates.

[A&Jfamily]

So those using their credit cards. You would rather pay the interest on a credit card then per paying to Carnival. Makes no sense to me.

 

 

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No. I think most of us using a credit card on sign and sail just pay the full bill when we return. No interest.

 

 

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[Warm Breezes]

So those using their credit cards. You would rather pay the interest on a credit card then per paying to Carnival. Makes no sense to me.

 

 

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I don't lose money on my credit cards, I make money. I pay my balances in full and receive points on my purchases which I redeem as cash for spending money before a vacation. I have 1 CC that is used for restaurant meals where I get 3% back on restaurant purchases, plus I use it for international travel as it has no international transaction fee. I have 1 local store CC that gives me 10 cents off per gallon of gas and many discounts/cash back on grocery and other items purchased in their store where I do all my grocery shopping. Their discounts add up to much more than 2% off my purchases there. I have 1 department store CC which gives me many discounts/cash back on apparel/other misc purchases that I mainly get there. Again their discounts/cash back add up to much more than 2% off my purchases there. The rest of my purchases such my kids college tuition, utilities, medical expenses, travel, etc go on my double cash back card which gives me 1% at time of purchase and 1% at time of payment. None of these cards have an annual fee. Again I redeem these points as cash for vacation spending money.

 

Not one dime goes to interest payments to the CC companies and I a reaping the rewards in the form of discounts and cash back on my purchases. Plus I get to hang on to my money for an extra month (for those afraid of losing the your interest from the bank by pre-paying:rolleyes:)

 

What doesn't make sense to me is not taking advantage of those opportunities....IMHO that is like throwing free money away. If you have the cash in the bank to pay for your purchase why not take advantage of the freebies given away by the CC company. Purchase with your card, get your discount/cash back, and THEN pay with the money you were going to pay for it with anyways.

 

As for prepaying for a Carnival Cruise I purchase the Carnival Gift Cards when they go on sale with my 2% double cash back credit card. Not only do I get the 10-15% discounted cost of the Gift Cards but I get 2% rewards cash back from my credit card. This way I have the cards available if I come across a deal on Carnival I want to book for the deposit (just started doing this since I just discovered the discounted gift cards). Since the money is already spent I will go ahead and make my purchases with Carnival whenever I am ready to book. No reason to wait to pay it to Carnival as the money has already been spent when I purchased the cards. The money I saved on the discount, plus the money I get back as a reward is much more than any interest I would make leaving the money in the bank. I think of it as investing in my vacation :D. I dare anyone to show me where any of what I do is financially irresponsible;).

Edited July 18, 2017 by Warm Breezes

[BNBR]

This thread is a fairly interesting study in psychology :)

[hrwi]

I don't lose money on my credit cards, I make money. I pay my balances in full and receive points on my purchases which I redeem as cash for spending money before a vacation. I have 1 CC that is used for restaurant meals where I get 3% back on restaurant purchases, plus I use it for international travel as it has no international transaction fee. I have 1 local store CC that gives me 10 cents off per gallon of gas and many discounts/cash back on grocery and other items purchased in their store where I do all my grocery shopping. Their discounts add up to much more than 2% off my purchases there. I have 1 department store CC which gives me many discounts/cash back on apparel/other misc purchases that I mainly get there. Again their discounts/cash back add up to much more than 2% off my purchases there. The rest of my purchases such my kids college tuition, utilities, medical expenses, travel, etc go on my double cash back card which gives me 1% at time of purchase and 1% at time of payment. None of these cards have an annual fee. Again I redeem these points as cash for vacation spending money.

 

Not one dime goes to interest payments to the CC companies and I a reaping the rewards in the form of discounts and cash back on my purchases. Plus I get to hang on to my money for an extra month (for those afraid of losing the your interest from the bank by pre-paying:rolleyes:)

 

What doesn't make sense to me is not taking advantage of those opportunities....IMHO that is like throwing free money away. If you have the cash in the bank to pay for your purchase why not take advantage of the freebies given away by the CC company. Purchase with your card, get your discount/cash back, and THEN pay with the money you were going to pay for it with anyways.

 

As for prepaying for a Carnival Cruise I purchase the Carnival Gift Cards when they go on sale with my 2% double cash back credit card. Not only do I get the 10-15% discounted cost of the Gift Cards but I get 2% rewards cash back from my credit card. This way I have the cards available if I come across a deal on Carnival I want to book for the deposit (just started doing this since I just discovered the discounted gift cards). Since the money is already spent I will go ahead and make my purchases with Carnival whenever I am ready to book. No reason to wait to pay it to Carnival as the money has already been spent when I purchased the cards. The money I saved on the discount, plus the money I get back as a reward is much more than any interest I would make leaving the money in the bank. I think of it as investing in my vacation :D. I dare anyone to show me where any of what I do is financially irresponsible;).

 

I opened the Fun Points card just for this reason! Statement credit and with the extra, a bottle of wine will be waiting in my room. And then the card is going on ice until next time!

 

I do have a side huslte (;) ) that gives me paypal, and that doesn't earn interest, but it's paying my gratuities so I'll do that now and not have to worry about it. If I could figure out how to transfer paypal to my sign and sail account (and I probably can, just haven't dug that deep yet), I'll do that too.

[BNBR]

I opened the Fun Points card just for this reason! Statement credit and with the extra, a bottle of wine will be waiting in my room. And then the card is going on ice until next time!

 

I do have a side huslte (;) ) that gives me paypal, and that doesn't earn interest, but it's paying my gratuities so I'll do that now and not have to worry about it. If I could figure out how to transfer paypal to my sign and sail account (and I probably can, just haven't dug that deep yet), I'll do that too.

 

Transfer paypal to your bank account and put money on your sign and sail account accordingly.

[Sneezykevina]

I always pay my cc balance in full and have for a very long time. I paid half up front, then the rest on my card. The next billing cycle I paid for our excursions. Next one I paid for the spa and cheers. I just like to break it up over a few months and part with my money slowly. I got 1K in cash back for my spending last year. That paid for 1/3 of my sauna. This is the power of planning. My corporate card gave me $500 and that is our spending cash. Hey, I own the company, I can do that!

[firemanbobswife]

I don't agree with this. The gift cards are absolutely not "factored into the price of the cruise."

 

I'm no mathematician, but let's take a look. So say the fare is $1000. Taxes/port fees/gratuities are $200. If I pay with gift cards, I will only need to pay $880 if I got them for "only" 10% off because taxes/port fees/gratuities can all be paid for with gift cards. You book through your TA at 11% off the $1000 which is $890 and then you must still pay full price for taxes/port fees/gratuities which is another $200. So I'm paying $1080 and you're paying $1090. So while it may not be a huge savings, it is still savings nonetheless.

 

And again, that's at only 10% off. I have gotten them for 15 and 20% so then my total out of pocket is $1020 and $960 respectively.

 

Someone please correct me if I'm doing it wrong. Math was never my strong point and it is super early in the morning.

 

 

It's now later in the day and I must correct my post. In the first section I said I would only pay $880 which in fact should read $1080 as it accurately does in the second comparison of $1080 for me, $1090 for the pp.

 

Oh and I wanted to add that I buy my discounted gift cards with my credit cards (no interest) and earn either 1%, 2%, or more back. So the savings are even more!

 

Just wanted to make sure it was clear. You all know how I am about facts and I have absolutely no problem in admitting my errors if/when I should make one.

 

So I'm guessing my math is still right?

[firemanbobswife]

Haven't paid one cent of interest to a credit card company in my life and I use my credit card for everything. Wish I could use it for my mortgage. Pay the balance every month and / or take advantage of card offers with 0% for signing up (usually 15-21 month periods). I'll make bigger purchases on one of those and divide it out so it is paid off while still at 0%.

In terms of rewards/points/cash back; I am getting thousands of dollars per year in discounts, kickbacks, and rebates.

 

I am the same way. No interest, and I earn thousands of dollars worth of things that don't cost me a cent.

 

So I buy my discounted gift cards with my CC and either earn miles or travel credit, or whatever so it it's an even bigger savings. Those that don't take advantage of CCs with benefits like that are leaving tons of money on the table.

[mikel24m]

Where are you guys finding gift cards at 15 % off ? I'd be stock piling if I could find them :)

 

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[firemanbobswife]

Where are you guys finding gift cards at 15 % off ? I'd be stock piling if I could find them :)

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EBay used to run promo codes that you could use for 15-20% off things, even gift cards. Now they have changed that policy and you can't even earn eBay Bucks on GC purchases anymore. I used to make a killing.

 

A couple months ago someone posted a link to a travel club or something that had Carnival GCs for 15% off a max of 3 $100 GC. I got 3.

[LucyB.]

This is such an interesting & divided thread.

I'm a pre pay as much as I can, when I have the money. We have one income. (Like I shared in my reply on the other thread) Life happens & unexpected financial things come up. I paid for the entire cruise within a week of booking it. I've purchased cruise cash, bar cash, & prepaid tips as finances have allowed. I now feel like I can relax on vacation. We set an on ship budget & have to stick to it. We could afford the cruise when I booked it, thus paying it off early. I booked in Feb. for an Oct. sailing. I like having peace of mind by pre paying. That's what works for us, maybe not everyone else.

[mikel24m]

EBay used to run promo codes that you could use for 15-20% off things, even gift cards. Now they have changed that policy and you can't even earn eBay Bucks on GC purchases anymore. I used to make a killing.

 

A couple months ago someone posted a link to a travel club or something that had Carnival GCs for 15% off a max of 3 $100 GC. I got 3.

Thanks. I never knew and I'm always on eBay

 

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[fair-winds39]

Ok - so this is my second thread of the day, prompted by the other, wherein it is pretty obvious people either fall into the pre-pay or not pre-pay camp. I'm going to give a 3rd option, but really curious.

 

Feel free to post your reasons!

 

We make the deposit, then we prepay gratuities, insurance, and the remainder when final payment is due.

[Sun 4-ever]

I always prepay everything that way when my husband checks our bill on the tv he didn't see a large amount plus then we know exactly how much we are spending on the ship.

 

 

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[Warm Breezes]

The discount on the gift cards is factored into the price of the cruise. You are not saving all that you can. For example I use a discount travel agent that shaves roughly 11% from the cruise portion of the fare. (Taxes and port fees are not discounted or commission able.) You can also buy from Costco at the same price as Carnival lists including Rate Codes, and get a Costco cash card when you return.

 

I see no reason to pay a bill that has not come due with exceptions for advantage to me. Take rental cars. Rent one in Europe and pay a kings ransom, however, some agencies will discount 50% is you pay 21 days in advance. Sign me up for that. A hotel in Hong Kong is the same price if prepaid or at check out. Save the transaction for later.

 

I will probably always end up with a balance on the sign and sail, so why not pay tips after the service has been delivered?

 

I was curious why people book more than a year ahead. Then I discovered you can't get decent digs if you don't jump on it. I saw the Horizon on a visit to the shipyard in Italy, and thought I'd like a suite on her for an early voyage. I found out I had to book when first listed to get a desirable suite. Who knew? I am new to cruising. Just entered my second year.

 

I have to disagree with you that the Gift Card discount being factored into the price of the cruise. I also used a TA that gave me discount on my CCL Sunshine cruise. I put down the deposit on it and then discovered the discounted gift cards. I used my discounted Carnival Gift Cards to pay for the balance of my cruise (which I got at my TA's discounted price). Per my TA the only thing I couldn't use the gift cards on was his commission which was billed separately to my credit card (which I got my 2% cash rewards back on). I could have used the discounted gift cards on my deposit if I had known about them when I had booked.

[Doggielover68]

So those using their credit cards. You would rather pay the interest on a credit card then per paying to Carnival. Makes no sense to me.

 

 

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Clearly you don't understand how credit cards work. You only pay interest if you don't pay off your balance. We get cash back for using it and doesn't cost us a penny. Plus if someone were to steal my credit card, I can call and cancel it. If someone steals my cash I can kiss it goodbye.

 

 

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[BNBR]

Plus if someone were to steal my credit card, I can call and cancel it. If someone steals my cash I can kiss it goodbye.

 

This. I have absolutely no idea why anyone uses a debit card. Why in the world people prance around with a card linked directly to their bank account seems insane to me. And that's not even counting all the benefits you get from a credit card.

[Wayfairers]

We don't prepay anything unless we get something for paying early...like a discount. If you prepay gratuities and get bad service you can't do anything about it. And, yes, we have adjusted gratuities before based on level of service.

 

 

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[deborahjo]

But there are people who do carry their balance over from month to month. I know never do because that is where the interest comes in. I know exactly how they work.

 

 

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[LMaxwell]

I don't lose money on my credit cards, I make money. I pay my balances in full and receive points on my purchases which I redeem as cash for spending money before a vacation. I have 1 CC that is used for restaurant meals where I get 3% back on restaurant purchases, plus I use it for international travel as it has no international transaction fee. I have 1 local store CC that gives me 10 cents off per gallon of gas and many discounts/cash back on grocery and other items purchased in their store where I do all my grocery shopping. Their discounts add up to much more than 2% off my purchases there. I have 1 department store CC which gives me many discounts/cash back on apparel/other misc purchases that I mainly get there. Again their discounts/cash back add up to much more than 2% off my purchases there. The rest of my purchases such my kids college tuition, utilities, medical expenses, travel, etc go on my double cash back card which gives me 1% at time of purchase and 1% at time of payment. None of these cards have an annual fee. Again I redeem these points as cash for vacation spending money.

 

Not one dime goes to interest payments to the CC companies and I a reaping the rewards in the form of discounts and cash back on my purchases. Plus I get to hang on to my money for an extra month (for those afraid of losing the your interest from the bank by pre-paying:rolleyes:)

 

What doesn't make sense to me is not taking advantage of those opportunities....IMHO that is like throwing free money away. If you have the cash in the bank to pay for your purchase why not take advantage of the freebies given away by the CC company. Purchase with your card, get your discount/cash back, and THEN pay with the money you were going to pay for it with anyways.

 

As for prepaying for a Carnival Cruise I purchase the Carnival Gift Cards when they go on sale with my 2% double cash back credit card. Not only do I get the 10-15% discounted cost of the Gift Cards but I get 2% rewards cash back from my credit card. This way I have the cards available if I come across a deal on Carnival I want to book for the deposit (just started doing this since I just discovered the discounted gift cards). Since the money is already spent I will go ahead and make my purchases with Carnival whenever I am ready to book. No reason to wait to pay it to Carnival as the money has already been spent when I purchased the cards. The money I saved on the discount, plus the money I get back as a reward is much more than any interest I would make leaving the money in the bank. I think of it as investing in my vacation :D. I dare anyone to show me where any of what I do is financially irresponsible;).

 

 

I feel like with 90% accuracy I could guess the cards you have.

 

Anytime I need to make a purchase of $1000 I always search to see if there is another attractive credit card offer. Generally the type of cards that trigger rewards at $1000 spend/3 months give rewards/miles/points worth about $100-200 in real value. This is not going to be news to you. The ones for $3000-5000 spend in 3 months rewards as a percentage of spend are usually lower than at the $1000 spend triggers.

 

I do take advantage of 12-21 month 0% financing if there is a large infrequent purchase I need to make.

 

Whenever there is a "deal" like the Amex $500; $100 rebate on carnival i only spend enough to hit the trigger; I have had that deal come up 2-3x a year and if I have a cruise booked far out I can use the same offer on the same trip again. Double dip at a 20% discount is nice.

 

Check out reddit.com/r/churning for more info on cards with deals, methods, etc.

 

There's a method to the madness; glad you have it nailed down.