Attack plan to paying off debts

Discussion in 'Money Talk$' started by evangelist6589, May 30, 2015.

  1. evangelist6589

    evangelist6589
    Expand Collapse
    Well-Known Member

    Joined:
    Nov 22, 2010
    Messages:
    8,369
    Likes Received:
    105
    I made my June budget and I have an attack plan to pay off my laptop (almost) in a month. However the wonderful news I got today (sarcastic) is that I will need to pay $350 in dental costs next week for a Crown. I was able to talk the price down a little from its original cost. Sadly this will need to be charged to a Credit Card of which I plan to pay off when I pay off my laptop. The original plan was to pay off 90% of the laptop debt in June if I sold my old MacBook but that may change.

    Do I have a good plan? Thanks.
     
  2. Sapper Woody

    Sapper Woody
    Expand Collapse
    Well-Known Member

    Joined:
    Jul 5, 2011
    Messages:
    2,112
    Likes Received:
    105


    Evan, I'm not being sarcastic or nasty with this response. But there's no way we could tell you if you have a good plan based on the information you gave us. To tell you if you had a good plan, you'd have to give us more information than is prudent online.



    That being said, elimination of debt should be a priority. Not THE priority, but A priority. After providing for the family and paying bills, then comes debt. Then savings, then investing.



    Obviously, there's some wiggle room there. Such as, you always want to put a little into savings, even while paying off debt. But while in debt, savings takes a back burner.
     
  3. JonC

    JonC
    Expand Collapse
    Lifelong Disciple
    Moderator

    Joined:
    Aug 28, 2001
    Messages:
    6,984
    Likes Received:
    373
    If you have the ability to pay off the $1200 laptop in June, is there any way you can pay cash for the $350 crown and just take a couple of months to pay off the laptop? If so, I think that may be a better option.
     
  4. annsni

    annsni
    Expand Collapse
    Administrator
    Administrator

    Joined:
    May 30, 2006
    Messages:
    20,198
    Likes Received:
    376
    Can you put off the crown for a month until you can afford to pay cash for it and then pay off the laptop then pay for the crown? Trust me - I've needed a crown since November and have needed an implant for 2 years but haven't done it yet because the finances aren't here just yet. Once we pay our property taxes on Monday, I should be able to get the crown probably next month.

    I was excited to read the thread title because I thought maybe you had come up with a plan to eliminate ALL of your debt but I guess that's not the case.
     
  5. JonC

    JonC
    Expand Collapse
    Lifelong Disciple
    Moderator

    Joined:
    Aug 28, 2001
    Messages:
    6,984
    Likes Received:
    373
    And I misread....I missed the part where the plan was dependent on selling the old computer (for...I take it....90% of the new one...about 1K?).

    My intelligence (which is highly questionable) tells me to pay off the higher interest items first. But I think that Ramsey has a point with paying off the smaller debts, not making new ones, and working your way up. The issue is, IMHO, that this takes discipline as it is a lengthy process. And everything in American culture screams against discipline and for satisfying our desires.
     
  6. Scarlett O.

    Scarlett O.
    Expand Collapse
    Well-Known Member

    Joined:
    May 22, 2002
    Messages:
    9,836
    Likes Received:
    115
    I like JonC's idea of paying off the crown first and taking two months to pay off the laptop.

    Evan6589, I just retired exactly one week ago. I haven't mentioned anything about it and I may not, but God has led me in that direction for a reason and I am earnestly seeking that reason.

    Let me tell you how I handled my finances for the past 32 years.

    Firstly, I had a fund that I did NOT touch except for unexpected expenses such as dental bills for extensive things not covered by insurance and things such as Lottie Moon offerings and the occasional unforeseen bill and the purposefully RARE splurge purchase. When I tell you that I didn't touch it except for those things - I did not touch it.

    I contributed to that fund regularly and still do. Where it's $25 or $500, I still pop money in that fund from time to time. It gets spent. Everyone has unexpected things that are costly.

    Secondly, I started a fund the very first year that I began teaching - 1983 - that I HAVE NOT touched it for 32 years. I contribute to it regularly as well - beit $25 or $500. On a teacher's salary, retirement is paltry. Even for me - who has three degrees. That fund is for supplementing my retirement. I still plan on not touching it if I can help it until I am much older. It looks as though I can make it on the $1200 a month that I will be making. I've gone over the budget multiple times and included for church contributions per month AND still contributing (a small amount) to both "don't-touch-me" funds.

    Living on a budget is doable, but one must follow the plan. It's like a diet or starting a Bible reading plan - you can have the best plan known to humanity, but if you don't follow it, you won't be successful.

    I asked (actually insisted) on no retirement party with politicians and board members and a big hoopla. But on the last day, with no children, the teachers had a small donut and orange juice "reception". I didn't want that, but was grateful for the meaningful gifts they gave me.

    They asked me what advice I had.

    Financial advice was what I gave them first and foremost. I did talk about a few other things - teaching as serving Christ and not living in the valley of mistakes OR the mountain top of successes, but finances was what first popped into my mind.

    You can do this.

    One last thing - you don't need our approval to live your life. We don't need to know every move you make. If you ask for advice or opinions, please accept them with graciousness. Take it or leave it - but accept it with graciousness.
     
    #6 Scarlett O., May 30, 2015
    Last edited: May 30, 2015
  7. evangelist6589

    evangelist6589
    Expand Collapse
    Well-Known Member

    Joined:
    Nov 22, 2010
    Messages:
    8,369
    Likes Received:
    105
    The Doctor said that it would not be wise since I have already been putting it off longer than necessary. He says the filling is more than 50% of the tooth and if I continue to wait it could break the tooth, costing me a root canal, or even an implant.

    He said he does not know for sure when the filling would snap the tooth it could be anytime up to 2 years so its a HUGE risk waiting. So in this emergency I am gonna use some debt which would save me money in the long run.

    I do not have the income to eliminate all my debt, but I do have the income to pay down the major credit card. But... I adjusted my budget to pay off the Crown before the laptop.
     
    #7 evangelist6589, Jun 1, 2015
    Last edited by a moderator: Jun 1, 2015
  8. evangelist6589

    evangelist6589
    Expand Collapse
    Well-Known Member

    Joined:
    Nov 22, 2010
    Messages:
    8,369
    Likes Received:
    105
    The Crown is an emergency expense. The laptop was not.
     
  9. evangelist6589

    evangelist6589
    Expand Collapse
    Well-Known Member

    Joined:
    Nov 22, 2010
    Messages:
    8,369
    Likes Received:
    105
    It was dependent on selling the old laptop which has not yet happened. So you suggest I pay the Crown first? Perhaps a better plan and yes you are correct this is what Ramsey would say. I am going to adjust my budget.
     
  10. annsni

    annsni
    Expand Collapse
    Administrator
    Administrator

    Joined:
    May 30, 2006
    Messages:
    20,198
    Likes Received:
    376
    Then use your emergency fund.
     

Share This Page

Loading...