what to do?

iVillage Member
Registered: 12-30-2003
what to do?
3
Thu, 02-10-2005 - 4:06pm
Okay, we are getting a larger tax return than I was expecting...I am planning on paying one cc off completely and then I am thinking that I should pay ahead on a few of our bills--for example if I pay the kids school lunch for the rest of the school year and pay preschool tuition for the rest of the school year and pay my car insurance for the rest of the time (it expires in May and will be renewed for six more months after that) I will still have money left to get my cars licensed and it will save me $235 a month to get those out of the way. The car insurance would kick back in at the first of May ($70), but the others wouldn't have to be paid again until August. Is this a good plan? I am thinking that this is a great way to free up more money to pay toward monthly payments every month, but would it be better just to pay the same amount toward another cc? Any thoughts?
Annie

iVillage Member
Registered: 07-08-2004
In reply to: annie_1992
Thu, 02-10-2005 - 4:11pm
I think it's a great plan, i did something similar with last years return. I have no idea what I'm going to d this year. We need new windows for my house so it will help with that.
iVillage Member
Registered: 12-05-2004
In reply to: annie_1992
Thu, 02-10-2005 - 6:01pm

I think it's a great plan. When planning your budget in late Summer, just remember to add those other expenses back in (the preschool and the school lunches).

Pat

iVillage Member
Registered: 09-21-2004
In reply to: annie_1992
Thu, 02-10-2005 - 11:59pm
I think its a great plan. Do what's best for you since you know your situation the best. Like you said, it frees up a lot of money to put toward your other balances and you don't have to worry about them at the same time.
I'm the kind of person, the less bills I have a month the happier I am. You know how some debt experts say to pay off your high interest first, well, I was watching Oprah one time and they said if you are the kind of person who just likes to have less bills to pay a month, debt reduction will work better for you that way. It's all about what makes you feel positive and stay motivated. As long as the end result is the same, it's all worth it.