Little freaked!

iVillage Member
Registered: 10-10-2003
Little freaked!
1
Thu, 05-18-2006 - 11:59am


Well, I am feeling a little freaked out. We have recently had soem unexpected expenses, and I find that they are on me. We have done our research and I am confident that we got the best deal, however, it also bothers me.... I think the fear of the debt getting out of control again is very scary for me....

So this is what has happened. My Dh was is a car accident easter weekend and totalled our van. Luckily, he was not injured. However, we needed to replace our van, and we had hoped to continue to drive our old van long enough to save cash to buy a new to us used van. So we found a van, a year newer that our old van, and 60 000km less than our old van, and we were able to pay for about half of it with the payment from the insurance company. We still had payments on our old van for $ 416 a month, for one more year, so most of the settlement went to paying that off. So the remiader we put on our line of credit (10.9%) interest, which was actually cheaper than what we were being offered by the bank or the dealership. So $4200 we put on the line of credit, so I figure that it come out about even. If we continue to pay $ 416 a month, this van will be paid off a little sooner than our old van (and this one is newer). I think that we made a reasonalbe decision, I just feel anxious to have a balance again on the line of credit.... Kinda silly, when have a car loan didn't freak me out....

Now the second issue that has arisen is that we needed to buy a lawn mower. We moved last summer, and hired someone to cut the grass. Unfortunately, he was no longer available, and everyone else we looked at was asking quite a bit of money to cut the grass ($50 vs $ 20) My grandpa has offered to cut the grass for free however, he needs a riding lawnmover to be able to do that, my yard is quite large about one acre, and it is just too large to push. Hiring someone else to do it would of cost us about $200 a month, whic is equivlent to the payments on a new lawnmover. So we bought a lawnmower, which we have financed 0% interest for the nest year with 12 equal monthly payments, with a 3 year warranty. Now we can afford the payments, as I have recently paid off two student loans in greater amounts than this, however, it is the IDEA of acquiring more debt that bothers me. I hate to have this stuff hanging over my head.... I find the whole thing freaks me out just a little.....

iVillage Member
Registered: 03-27-2003
Thu, 05-18-2006 - 3:48pm

Hey, I think you totally made the right decision on the van--most people think that "secured" debt is always better than unsecured, but in some circumstances, it's just not. For instance, if you're buying a van and can get a better rate on a credit card than through an auto loan, what is the point of having someone hold your vehicle's title as security against a higher-rate loan? LOL So, although I TOTALLY understand the feeling of getting out of control, I think it was the right choice.

And, actually, ditto on the lawnmower. An acre is a LOT to mow, and you had to do something. Now, for the future, I find I save TONS of money by planning way ahead and keeping my eyes on the used market for things I'm going to need in the next six to nine months. But of course, if your usual plan falls through at the last minute and you have to have a mower NOW, then buying one on 0% financing and paying it off as quickly as possible may be your only reasonable choice. (By the way, $20 to mow an entire acre is a STEAL, lol, and I'm sorry you lost that option!)

Just don't let it get you to freaking out to the point that you throw up your hands and say, "Well, what the heck. Let's just charge everything!!" LOL

Good luck with both things. I hope the "new" van works out great, and I hope the same for the mower.

Blessings,

Heather