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Which to Pay?

February 7th, 2016 at 12:51 pm

With the recent sickness, and job instability I've really gotten cautious with our budget. I've realized with our current spending, we would be about $500 short a month if we had to rely on just husband's income. That frightens me.

I need advice on what to do with any extra income. Right now I am paying $200 a month on my 0% interest computer loan. Which will get it paid off before the financing runs out. We are also paying $30 interest only on the LOC.

Should I work on getting the computer paid off to free up that $200 a month in the budget. OR should I be paying down the LOC, which does not help the budget but makes the most sense on paper since it's charging interest and has the highest balance?

Part of me thinks it's silly to payoff a 0% loan early, but it would free up the budget and I think the quick win will give me an emotional boost over the LOC which will take quite some time to pay.

Which would you do?

** Job Update **

My interview with my old job is next Sunday.

I almost got fired at the vet on Wednesday. I accidentally missed a meeting which I did not know about. I was really expecting to get fired. But I did talk with husband and decided that if the owner was rude or disrespectful that I would quit and not tolerate her terror anymore. She ended up not coming in to have a "talk" with me, so her husband sat down with me instead. He is much nicer and more chill. He said just said to be careful and not do it again. So I got off easy.

I will admit I will feel bad for the other workers when I quit at the vet. The other new morning girl got fired for being late. (The 5th person to quit or get fired in my 90 days...) So they are so so short staffed. Actually I am picking up an extra day a week for now. Figure I might as well make as much money as I can just in case. I am going to miss the animals and the knowledge I am learning, but I won't miss the stress and instability.

7 Responses to “Which to Pay?”

  1. Kiki Says:

    If it was me i would pay off the computer to get that off my budget and out of my mind if the debt. The LOC will be there libg past the computer but i would free up as mych out of my budget as i could.

  2. creditcardfree Says:

    How much is your LOC payment? Just the $30 in interest?

    I'm tempted to agree getting the computer paid off ASAP. Can you do it faster than five months?

    Fewer obligated payments and a bigger emergency fund will help you weather future storms. Smile

  3. klarose Says:

    That's what I thought. Pay it off, just to have one less debt and payment.

    LOC is interest only mandatory payments.

    I can pay more than $200 a month on the computer. That's just what I've been putting towards it to spread out the payments over the 12 months. But I will start funneling my excess towards it and get it gone.

    Can't really have any fewer payments. The line of credit and computer our are only debts and we don't have any extra bills to cut. We just have the basics like electric, trash, etc. We don't pay for anything like gym memberships or cable tv.

    We haven't had to tap into the EF since I've had it, thank goodness. We've always found ways to come up with the needed funds, or be more frugal.

  4. snafu Says:

    I hope you are documenting every negative interaction with this supervisor. Employees are not required to accept inappropriate behavior. She should be dismissed. As a PT employee I doubt you're entitled to Unemployment Ins. You might suggest to co workers they keep records of her infractions. She needs to be held accountable as well in spite of the fact that she's married to the vet...his reputation in the community is an important factor and once damaged is very difficult to repair.

  5. Jenn Says:

    I also vote for the computer. You get both the psychological boost + the safety of one fewer required monthly payment.

  6. PatientSaver Says:

    I know that in the state of CT you ARE entitled to unemployment benefits if let go from a p/t job.

  7. FrugalTexan75 Says:

    I'd go for the computer myself too.

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