I'm so tempted, oh so tempted

iVillage Member
Registered: 03-27-2003
I'm so tempted, oh so tempted
5
Thu, 03-02-2006 - 1:17pm

Ack! I have enough money in my accounts that I could pay off my car today. Today! It would mean using the $3000 in bonuses etc. that we were hoping to use for other stuff. It would also mean using our contingency fund and our automobile savings (for repairs, etc.).

I know it's silly, but I would LOVE to see that balance disappear. Poof! It would free up a little over $300 a month, and my car WOULD BE PAID OFF. In three months (before our wedding anniversary), we'd have saved the almost $1000 it will cost to buy the rings we want, and combined with my earnings from writing, we'd have enough for our fancy romantic hotel night, too.

We would *not* have money for: hardwood floors (our carpets are GROSS and this is a major peace of mind issue for dh), chair repair (I'm worried if we don't repair them soon that they will be beyond repair--we bought them for a fraction of their value in Thailand, and they are now--once repaired--worth more than $1000 each--dh doesn't want to sell them, btw), vacation, vasectomy (which we've kind of decided to put off a bit longer anyway--we'll use other methods in the meantime), or pretty much anything else. Oh, and we wouldn't have a contingency fund or a car repair fund!

But then, we'd be saving money on a monthly basis to the tune of $300. And eventually we could use that money to pay down the rest of our debt faster.

It's foolhardy to pay it off right now, isn't it? I know it is, and yet somehow I need to hear it from others as well. By the way, the reason I would pay that rather than one of my cc debts is that the interest rate is higher (it's only 5.2%, but my ccs are on great offers at the moment) and it's our only remaining secured debt (other than our mortgage), plus the monthly *required* payment is higher than on the other debts (though we actually pay more to the others on a monthly basis, if something were to happen to us financially, the others could be paid far less and still be kept in good standing).

Thanks for letting me whine and fret. :) Now, back to actually getting work done around here.

Heather

iVillage Member
Registered: 01-06-2005
Thu, 03-02-2006 - 3:14pm

You are probably ok NOT paying the car off right now. It will be paid off soon enough, and it sounds like you have a lot of other things going on right now!

Just be patient, and thankful that you are sitting on that possibility right now! You are making some great progress in life!

~Aravis~

 

Image hosting by TinyPic

iVillage Member
Registered: 12-05-2004
Thu, 03-02-2006 - 3:40pm

I'm sure it's tempting right now. We have enough money sitting in our Etrade brokerage account to pay off our credit card right now, and I really want to pay that card off more than anything. But...it just isn't the priority right now. Buying my husband's stock options before they expire are our main priority. Just like it sounds like your main goal right now, at least for your DH, is getting the carpet replaced and the chairs fixed. I would just keep making your normal car payments and use this bonus money for the repairs that you need done. This way, you will still have your emergency fund in case anything comes up.

Pat :-D

Avatar for endomagazine
iVillage Member
Registered: 11-09-2004
Thu, 03-02-2006 - 8:27pm

Hello,

I know it's tempting to throw everything at that debt that is almost gone. After all, you want it so badly and it's so close.. except that you've given your bonus money a name and a place to go.. which isn't toward paying off that car. =)

Keep allocating your money the way you have been. If you feel very motivated to squeeze a little more snowball from your grocery bill (after buying them..) go ahead. Just don't take away your "murphy repellant" (contingency fund) or car repair savings. Those have a purpose and they shouldn't be put toward debt. They are there to keep you from getting more debt when Murphy's Law comes to call!

Sincerely,
Lindsey Schocke

Sincerely,
Lindsey Schocke

Geeks on Tap: Mission Accomplished

iVillage Member
Registered: 12-12-2004
Fri, 03-03-2006 - 1:47am
Hi, Heather. I say, pay off the car. DH paid off his truck, and was glad he had $$$ to pay the costly repair (before getting the new one). It helped him qualify, I think, for an awesome interest rate, and helped the credit rating. That extra $300+ is going for other things---classes (for his job), new eyeglasses (!), dental appts (to be scheduled), garage door opener (the installation). It is such peace of mind to know that my car is all paid off now, and that I can hopefully put that $$ toward those medical bills. Just my opinion. Plus, it might help to have that cash on hand for those moving expenses, getting things set up, etc. WHiz.
Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Fri, 03-03-2006 - 8:23am

Sheesh Heather - this really is a tough question.

All my best,
Danni