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Pro's and con's of paying in full well before final payment date


daijayx2

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Hello all. I was wondering if there was any Pro's or con's in paying in full before well before final payment date? I am booked for the Conquest in Feb 2013 under an es rate. Thank you in advance.

This is my first booking where I have paid over time all other cruises I have always paid in full at booking.

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I'm sorry I can't help you on this one. We just always pay for the whole thing. If there is a price drop then we just get OBC. Thats like free money for drinks, or whatever :D. If we don't have the all the money at the time of booking we pay for it with the AMEX and get our points.

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We never pay in full in advance because we don't see the point in giving Carnival that money and allow them to earn interest on it when it could stay in our account and earn interest :D As a stock holder, I should probably feel differently about that but just don't, lol.

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Some people will say they'd rather have their money earn interest, or that they have to "save up" to pay off the cruise, rather than have CCL hold their money for an extended period of time. For our past 9-10 cruises, we have paid off large chunks at a time, and have been paid in full at least 6 months before sailing. That includes paying gratuities, excursions, and drink coupons. We don't like coming home to a large credit card bill arriving soon after our vacation.

edited - Vanessa and I posted at the same minute!

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Per Bobsfamily and what I heard, since you booked ES, if you find any lower prices, you will get OBC for the difference and have money waiting for you when you get on. Sounds like a win. I also like to pay off my cruise at the beginning or early. Makes waiting for the cruise even more exciting since you will not have to put out any more money for the cruise.

Have fun!!

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Some people will say they'd rather have their money earn interest, or that they have to "save up" to pay off the cruise, rather than have CCL hold their money for an extended period of time. For our past 9-10 cruises, we have paid off large chunks at a time, and have been paid in full at least 6 months before sailing. That includes paying gratuities, excursions, and drink coupons. We don't like coming home to a large credit card bill arriving soon after our vacation.

 

We never come home to a large credit card bill because we pay off the cruise when it is due on a credit card that earns points, then immediately turn around and pay off the card with money from our interest bearing account. Further, our S&S bill is rarely over $300 on a week cruise. I do realize that not everyone can pay this way.

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I very rarely book a cruise early enough to pay it off over time, usually only a month or 2 out. My next cruise is the first one that I paid just a deposit on. I've just been paying $100 a week and have a few more weeks til it's paid off. If the price drops now, I'll owe less. If the price drops in a few weeks I'll get OBC. Really not gonna earn much interest on $1200 dollars these days so I think it's just a matter of preference.

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If you booked ES and you pay off early then price drops are in the form of OBC, which is nice to have. We paid ours off early because we had the money at that time. I figured if I waited any longer something else might come up and the money would get used. When i paid ours off it was close to Christmas time, then I knew after that was DD's first birthday (PARTY!) and then a couple weeks later final payment. I had paid a little bit here and there, until I got it down to about $400 and then paid the rest off. No stressing at final payment time.

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Here is the reason I dont pay all at once or early: with ES fares, if you cancel prior to final payment you do not get your money back. You have to apply it to a future cruise. I figure if something happens (get laid off, medical issues or a death, etc.) I would rather lose just a little bit to a future cruise and have most of my money still in my bank. Of course final pymt is due almost 2.5 months prior to sailing so unless you have insurance you would lose all the money if you had to cancel in the last several months. jmo

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We don't rely on credit cards to pay for any of our trip, so I like to have EVERYTHING actually PAID FOR as soon as possible. The cruise, the excursions, money on S&S, pre-cruise hotels, airfare, etc. I could give a crap if I'm giving Carnival a few extra bucks, the hassle and headaches it saves me are worth it.

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Here is the reason I dont pay all at once or early: with ES fares, if you cancel prior to final payment you do not get your money back. You have to apply it to a future cruise. I figure if something happens (get laid off, medical issues or a death, etc.) I would rather lose just a little bit to a future cruise and have most of my money still in my bank. Of course final pymt is due almost 2.5 months prior to sailing so unless you have insurance you would lose all the money if you had to cancel in the last several months. jmo

 

karen - I think you'll find that you only lose the $50 penalty per person and the balance of the per person deposit is transferred to a future cruise, and that any balance above that will be refunded. ken

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With interest as low as it is these days it makes no difference to us whether we pay it off or keep it in the bank unless we book ES. Then I like to wait because I would rather pay less up front than get an OBC. We prepay tips as we consider them part of the cost of the cruise. We feel the same way about the insurance and buy private travel insurance the day we make the deposit.

We spend very little on the ship (DH can no longer drink due to meds) and I am so over shopping and excursions. I don't waste money on the spa as I get regular facials, massages and mani-pedis at home at a much lower cost. If I want a massage I get it on the beach somewhere.

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I guess b/c of where I'm at in my life and career, I pay it off as soon as I can do it.

 

I book a year in advance (or so) so that I CAN make payments accordingly and that puts less stress on my budding salary. I put it on my points credit card and lately I've been planning so I can pay off the credit card as soon as I make the payment (before I had to pay it off the next month then charge it up again, but that can look bad on credit, so I changed my ways). I also pay it off early, so that the money that would normally go towards paying the cruise down, will go into my vacation account up to I reach the amount I want for spending $. Otherwise, I wouldn't have any cash to take with me. This year I'm trying to save up enough to also pay off the card I will use on the cruise after the cruise or maybe put some fun dollars on it if I can ever find out if those fundollars are refundable if you have to cancel (not that I'm planning on it, but you have think about these things.).

 

I also buy travel insurance, so if I have to cancel and I've paid in full.........my policy should cover getting my money back.

 

But that is just the way I have to do things right now b/c of where I'm at. I don't think any way that has been mentioned is wrong or better than the next, just individual to each situation.

 

I'm looking to buy a house, so when I do that, my situation will def. change. In fact, I'm already planning on how it will change and how to continue cruising with new financial responsibilities and still be fiscally smart. Boy, that Mega Millions would have been nice........:rolleyes:

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Hello all. I was wondering if there was any Pro's or con's in paying in full before well before final payment date? I am booked for the Conquest in Feb 2013 under an es rate. Thank you in advance.

This is my first booking where I have paid over time all other cruises I have always paid in full at booking.

Why would you allow Carnival the use of your money interest-free for any longer than you absolutely have to? :confused:
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We never come home to a large credit card bill because we pay off the cruise when it is due on a credit card that earns points, then immediately turn around and pay off the card with money from our interest bearing account. Further, our S&S bill is rarely over $300 on a week cruise. I do realize that not everyone can pay this way.

 

I do the same thing. I put the cruise on a credit card that earns triple points for travel and then immediately pay it off. That credit card company has paid me a LOT of money in gift cards for using their card to pay for my vacations and I've never paid them a dime in interest :D

 

I also pre-pay whatever else I can up front (gratuities, buying drink tickets, setting cash aside out of every paycheck for spending money, etc.) before the trip because I don't want to come home from a vacation only to have to pay off a lot of bills. Kind of spoils the fun.

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Why would you allow Carnival the use of your money interest-free for any longer than you absolutely have to? :confused:

 

Same reason people over-withhold on their wages so they get that big refund (which is their own money) and then go and spend it 3 times over. :rolleyes:

 

Who cares if you don't earn any interest on it sitting at home!

 

It's still YOUR MONEY and you don't need to give it to anyone until you have to! What if you have a home or car repair emergency and you've just paid off your cruise six months early and now don't have the funds for that emergency?

 

Pay as you go, folks.

 

And, yes, I also use a credit card that earns points which I then redeem for certificates to help pay for my next cruise.

 

Credit cards are not evil, people. Good credit is actually a good thing! If you can budget to pay for your cruise, you can budget and use credit wisely.

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We have done both, paid it off early and waited until final payment is due.

 

I think it is a subjective topic and everyone feels different. Some like to pay it off early and not worry about a thing, others want to pay if off on time and others just pay the final amount when it is due. Each to their own and no decision is wrong, it it works for you personally.

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Why would you allow Carnival the use of your money interest-free for any longer than you absolutely have to? :confused:

 

I agree with the principle, but honestly unless you are booking a year ahead of time, any interest would be minimal enough to ignore.

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one con is now if you have made final payment and NOT used ES, then no OBC. They do not go with lower fare unless you used ES.

 

 

This is not entirely true. We will be traveling with our son and his family in July. Our booking is early saver, but there booking was not (something to do with available rooms for 4). During the sale in March I noticed that both of our bookings had dropped in price. I filed the Early Saver form for our booking and then called Carnival with my sons booking # and the info about the price difference. They had completly paid off their cruise and the PVP who helped me immediatly took care of a $340 price difference on my sons booking.

 

As long as you are before the final payment date listed on your booking by Carnival you can get credit. If in the case of my son's booking you have paid the amount in full they issue the credit back to the credit card that you last charged.

 

As soon as my son saw the money show as a credit on his credit card statement he purchased Fun Ship Dollars thru Bon Voyage and had them credited to his room.

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I've just started using the ES feature. Does the travel agent (in my case World Travel Holdings dba United Cruises) watch the fees and then get me the onboard credit or am I responsible for that?

 

If I'm responsible for watching the fees what is the best/easiest way to watch for dips so I can contact my agent?

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Same reason people over-withhold on their wages so they get that big refund (which is their own money) and then go and spend it 3 times over. :rolleyes:

 

Who cares if you don't earn any interest on it sitting at home!

 

It's still YOUR MONEY and you don't need to give it to anyone until you have to! What if you have a home or car repair emergency and you've just paid off your cruise six months early and now don't have the funds for that emergency?

 

Pay as you go, folks.

 

And, yes, I also use a credit card that earns points which I then redeem for certificates to help pay for my next cruise.

 

Credit cards are not evil, people. Good credit is actually a good thing! If you can budget to pay for your cruise, you can budget and use credit wisely.

 

I think we both come from the same school.

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