I have no idea what to do....
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| Fri, 08-26-2005 - 5:19am |
yesterday I went to the dentist with my hubby and the dentist said that hubby grinded down his teeth to the point where he needs inlays. The health insurance don't cover those, because they are not almagam. So we are looking at 3000 to 9000 Euros (he needs all his teeth done). 9000 would be for ceramic inlays, but since I wouldn't get them for me, he's not getting them either, because who knows... if he needs dentures in 15 years then I spent 9000 for only 15 years, when 3000 would have done it. Anyway... be it as it may, I have neither 3000 nor 9000 Euros. I went to the bank today for information on extra dental insurance, which they offer to pay 40% and it would go into effect after 8 months (we can wait with the teeth for approx. 12 months). So I could do that, which still leaves me with 1800 Euros to pay. Which obviously I don't have either, or else I wouldn't be joining a debt support group.
Before I went to London the lady in the bank said she would look into refinancing the appartment, including all the debt that has accumulated, so we would have only 1 bill. I have no idea what to do. Interest is down right now and I could end up paying less then before. It would also free up the 800 in disability that my husband gets, so we could theoretically save lets say half of it for paying off the appartment and make extra payments. On the other hand, I'm afraid that, if we do that in a few months we will run up our debt again, because we took the easy way out and didn't learn anything from it.... I have no idea what to do. There goes my dream of getting a car in a few years too. :(
What would you guys do in my place?

I would make sure that the payment for your apartment, after re-financing, is well within your range, otherwise you may be risking your home. Again, I am not familiar with Germany (where is Ivy_Jordis?), but in France, most mortgages automatically some with mortgage insurance (not the kind in the U.S.) so if something happens and you cannot make your payment, the insurance will pick up the payment for up to 6 months.
It is good to "learn you lesson" and pay down your debt the hard way, not intending to offend other people on this board, this is a medical/dental expense. It is not like you went out and bought loads of useless things for your house. In order words, if you are in the habit of wasting money, then maybe paying down your debt the hard way will help break the habit. But nobody is in the habit of getting sick and requiring medical treatment, so I would argue that your current situation is not cause by some bad habits and therefore there is no lesson to learn. Other than the fact that emergency happens and we need to save up money for it.
Back to the beginning: what would the payment be after refinancing?
Thank you minisinge for your thoughts. You are right about this being an expense that I cannot influence. As far as the refinancing goes, I have no idea yet how much the payments would be. Chances are that they would be lower than they are now, because interest is down, however, if we have one bill and no debt other than the mortgage... I'm so scared we blow it. I'm not sure we are ready for that yet. Also, I could wait 1 year and then have his teeth fixed. There is some dental insurance that would cover 40% (I think I mentioned that) and with his mom saving 100 every month from his disability that would come out to about 800 Euros so all we would have to pay 1000 and that is feasible, if we start saving now, which I have started a savings plan of 50 Euros (can't do more right now) a month so that by lets say July that would be 500 Euros and the other 500 I can get too, somehow, I'm sure... I think I need more information and all to make a final decision, right now I would rather not refinance, especially cause next year July he'll pretty much have all his debt in the States paid off and who knows what the possibilities are then. I got to think this through, so I hope you don't mind, if I post my thoughts here, because it does help to write it down and maybe I get input from some of you.
Sushi