Charge the repairs
Empty the E-fund
Other (Please Explain)
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Other: Charge the repairs, then pay them off from the E fund.
TwistedAir,What is the interest on the E-fund versus the credit card? Therein lies your answer. Go with what costs you less. I think that qualifies as the emergency that you have been saving for, IMHO.And I am really glad to hear that you didn't have "buy a new car" in your choices. Very cool.Just my opinion, as with cars, YMMV.Beth
If you charge it and still have a balance on the card don't you start accruing interest right away? If so, I'd use the e-fund and then work to replace that money as you pay off the card. If you don't accrue interest right away, I'd charge it, allow e-fund to earn interest until the bill needs to be paid and then use the cash to pay it all. Whichever earns you the most is what I'd do.Susan
I voted other,and here is my reason why i have voted for this option.Instead of charging your auto repair bill or wiping out your e-fund just to cover the bill,if you already are in debt and you have some availiable credit for a balance transfer then this would be the way to go.All you would be doing is taking a temporary payment break,and take the money that you would of payed to the the card and use it for the car repair bill,this makes taking a set back in a postive manner.Back in april i had a $500.00 repair bill myself,and i done what i am suggesting to you as far with dealing with this kind of emergency.I simply take a payment break by transferring a small balance,and take the money that i would of payed to my card,and put it on my car.Now i got to do it again because my struts are shot,and i am looking at about $300.00 for replacing them.I will do a small B.T with citibank,and pay no B.T. fees to complete the transaction,and use this money to pay my repair bill.Again all i am doing is taking a payment break.I know this will add an additional month worth of payments oh well things aren't perfect as far with what life can bring,but i can say one thing that is i have a good savings account of 7500.00,and growing.Atleast i am not messing with it,and can deal with the bad very easily when it happens.Just don't give up when a set back would occur,and having a good amount of availiable credit to take a payment break is all you need if anything bad happens while paying down on balances.This is how important it is about being very responsible with credit usage.Just be sure that their isn't any B.T. fees if you can exercise this option.
90,000 mile maintenance, eh? (It's that Canada thread). Well, thisis not an emergency. But since you don't have the money, use the e-fund.And then start to rebuild it immediately.I understand that a lot of people here are in serious credit card caca.But for those of you who have $10-$100 left at the end of your month.Everyone should be saving for the expensive things that are maintenance,expensive being relative. For me it's more than 200-400 dollars.I'm sure that it's much less for some. I'm my case it's the amountof discretionary spending/savings that I can cut out of my budget for two months to pay it off.I have savings goals in Quicken for replacing my roof in 4 years and theHVAC unit. I have a savings goal for my medical deductable. And a bunchof other things. OK, I might be a little anal, but it beats puttingthings on the credit card and I can earn interest instead of paying it.Well, I do put it on the credit card for the FF miles, but pay itoff with the fund. And in 4 years when I get hit with a bill for anAC and roof that exceeds my credit limit, I don't have to go to thebank and pay the fees for a home equity loan.When you get the e-fund rebuilt, start saving for that 120,000 milemaintenance that you know is coming. About $15/month if you start now.If you sell the car before then the money can be used to help buy thereplacement or transferred to that car's maintenance fund. Oh, you'rehalf-way to a new transmission.Many people here and on the LBYM boards take their car paymentswhen they've paid off their car and start putting them in savingsfor their next car. Maybe just a general car fund and general housefund?Try to save the emergency fund for true emergencies. That seems mostlyto be being laid-off and medical emergencies (but not always). Thingsalso break around the house. But then again, knowing that things breakaround the house maybe I should start a small but separate fund forthat? Hmmm......Eric
I agree with Eric.Seems like we had a discussion like this awhile ago.A 90,000 mile maintenance check isn't an "emergency". But it *is* something you should be budgeting for. Also you should be bugeting for replacing the car, sometime....90,000 miles isn't "real old", but cars don't last forever, and eventually you'll need to replace it. So it would be a good idea to start now, to save for it, so that when the car *does* quit completely, it also won't be an "emergency".For now, unless you "earn" something with your credit card, like frequent flyer miles or something....I'd use the emergency fund, rather than the card.And re-examine your budget to take care of needed expenses, like this.
As long as you have the money ready, I'd put the repairs on your credit card--but you might have to pay off that $50 first to insure that you don't start accruing finance charges right away. Depending on your billing cycle, this gives you 3-7 weeks before you have to pay for the repairs. That's not a lot of time to replenish your emergency fund, but it's something.Greta
90,000 mile maintenance, eh? (It's that Canada thread). Well, thisis not an emergency. But since you don't have the money, use the e-fund.And then start to rebuild it immediately. I agree that the 90,000 mile service is not an emergency. I do have enough money sloshing around in my normal funds cover that service. I could see that coming and did save. The thing that threw the monkey wrench in the proverbial works was the fact that the brakes need servicing as well, which seems to be a relatively unforeseeable event. Try to save the emergency fund for true emergencies.I think that's what I'll do. Thanks for the input.Air
I'm replying based on what I've done.Recently.Of course the 50.19 in MY e fund won't buy squat, so I don't have that option anyway.joyce
I acquired the 90K tune-up hickey 18 mos. ago for my '94 Honda Civic - cost me over $900 - which I foolishly charged to a credit card. Last month, I took it in for the next 15K check-up, only cost me $225.00 but the important thing is I paid CASH for it! I'm hoping to run that little car even AFTER I'm out of cc debt (which will hopefully be in 2003). Sure nice not having a car payment! But is sure will be nice to not have ANY payments!!!
A 90,000 mile maintenance check isn't an "emergency".A brake pad grinding steel on a rotor is an emergency waiting to happen.It's better to flip the $500 now then to total your car and risk personal injury. I had my beloved Dodge towed into the shop yesterday, so I can sympathize with you. Luckily I just got paid and will be able to Debit the expense.Bret
A brake pad grinding steel on a rotor is an emergency waiting to happen. It's better to flip the $500 now then to total your car and risk personal injury. I had my beloved Dodge towed into the shop yesterday, so I can sympathize with you. Luckily I just got paid and will be able to Debit the expense. Bret Bret, I think you misunderstood my meaning. I believe that scheduled maintencane is very frugal, just that it is budgetable for.Brakes are known to wear out at regular intervals too.If he hadn't been driving a Mazda they would have gone between45,000 and 60,000 miles. Yes, fix it all, at once, but budget for the next time.EricWho got 87,000 miles on his Mazda B2000's first set of pads
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