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What Would You Do?

August 15th, 2014 at 02:08 pm

I'm having trouble making a decision, and I need input. Right now it seems like I owe little amounts of money to a lot of different things, and it is stressing me out. Nothing is getting paid down very fast, because it is being split between too many things.

Nothing is due immediately, nor is there interest on it, so it is not desperate or anything, but it is just in the back of my mind all the time.

So I was thinking in order to ease my stress load a little I could take out $500 from my EF and pay some things off. Of course then I would owe myself, but I would owe to one thing, rather than a bunch of little things.

But I don't know if this is a good idea, or what I would even pay down. So here are some of the things that I know need paid, and maybe you guys could give me suggestions.

Things I owe & when they are due:

$500 for car - 0% interest, Grandpa is on vacation so I can not give him any money for at least 3 weeks. Not due until end of Sept.

$150 to mom - She says pay back whenever.

$400 on credit card - Due mid Sept.

$160 to cash stash - Probably last thing to pay

$300 for car insurance - Due Oct.

$125 for school - Due Sept.

The car would give me the biggest win because I am currently putting a $100 a week towards it. BUT since I cant actually pay it for 3 weeks it seems silly to have all that extra money just sitting in my account until then.

I am currently leaning towards stopping putting money back for the car and just pay down other things. Then I can take the money out of the EF in 3 weeks and pay off the car then.

Or should I just keep plodding along, and leave my EF alone. Everything will get paid down slowly, it will just take a few months. No interest will be accrued. Help!

8 Responses to “What Would You Do?”

  1. JulieAlbright Says:

    I think that to know whether or not you should use your EF money for this, it'd help people to know how much is in your EF (1 mont expenses or whatever) and also whether you have another fallback option such as a low interest credit card that you could use if an emergency hits and the money is gone.

  2. creditcardfree Says:

    How much each pay period do you have to put towards debt?

  3. klarose Says:

    Good point! There is a little over 1 month expenses in the EF right now. And we do have 2 credit cards, and very generous parents which we could fall back on if a true emergency hits.

    Also of course, as soon as all these little expenses quit bleeding me dry I will start building back up the EF.

    Usually these little things would be cash flowed no problem, but I have really put paying down the car a priority, so for the last 5 months every extra cent has been going towards that. I am quite proud that I will be able to say I bought and paid off a car in 6 months. Smile That is what I keep reminding myself.

  4. klarose Says:

    I have right at $150 money left over each week after essential bills. $50 of that is used to cover gas, and the inevitable little things that pop up. So $100 of reliable money to put towards debt or savings. (Which every dollar of has been going towards the car.)

    Of course I frequently get side jobs, and random cash, which I ALWAYS put towards debt. But I dont like to count on that.

  5. snafu Says:

    Since you asked for opinions...I think you have a lot of changes coming at you and for that reason I'd hesitate to use Emergency money as you've not outlined an emergency. You leave me with the impression that the anticipated change is stressing you over sums that need no attention until about 30 days from today! If you can't sleep without taking action, I suggest making notes in your planner/calendar/cell for tuition, CC and insurance at least two business days in advance of due date. CC and insurance can be paid on-line with a couple of computer strokes.

    I think you're ahead of schedule paying grand for car, mom's ok for ages. I'm asking for the delay because there is potential for expense whenever there is upcoming change. [internet hook-up or internship you will soon undertake] If you must pay something, I suggest you transfer money to yourself. When things get stressful here, I find doing something physical like taking the dog for a walk/run lets me clear my head and focus on the real issues. How big is your cutie pup? How is he fitting in? Dogs will listen to all your problems and not say stupid things lol

  6. klarose Says:

    Thanks for the opinion Snafu! I think you're right. I'm just stressed about all the unknown.

    I know things will get paid, I'm just tired of chipping away at them. I guess I will just sit tight for the time being, and keep picking away at it.

    Pup is getting big, although she is in her gangly stage right now, and is mostly legs. She is in trouble right now after playing rough with the goats and is in puppy jail. (Dog Kennel) But besides that she is doing good.

  7. creditcardfree Says:

    Well, I would pay credit card, school, insurance, car and then your mom. If needed I'd stop on the car for awhile since you are paid ahead. Maybe if you have a planned focus it will go that much faster!

  8. doingitallwrong Says:

    I understand the frustration of lots of little things hanging over you, but I do agree that nothing you've mentioned seems to be an emergency that would justify raiding your EF. It might be a little different if your EF were fully funded, but right now you'd be taking about 1/3 of the EF (if your sidebar is current) to pay off things for which you can afford the payments and which aren't costing you interest.

    (Of course, since I have a habit of doing everything wrong, I'd be sorely tempted to wipe out the EF, pay off everything, and then sock every extra cent going forward into the EF. I'm not advising you to do that -- it's what I would want to do, which means it's probably the worst thing you could do. Wink )

    I would say keep focusing on the fact that you are paying off that car in six months. You said earlier that you feel like nothing is getting paid off quickly, but the car is! Can you bust your hump for the next three weeks to pull in an extra $200 in snowflakes, and pay off the car when your grandpa gets back? Then you'd be done with the car (yay!) and you'd have $400 a month put toward the other things, plus whatever you're already putting toward them. That would get you the credit card and school paid off in September, insurance and your mom in October, and then you'd just have your "cash stash" left. Even if you can't get the extra $200 for car now, you still should have all of these things paid off by November. That's not really too long. (I say this from the perspective of someone who has 18 months before all my debts are paid off. Three months is no time at all! Smile )

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