I received quite a surprise, this afternoon, when I woke up and checked my mailbox. It has been a couple months now, since I refinanced my car with my local credit union, getting rid of Nuvell, who was charging me higher interest rates. So I wasn't expecting to see another refund check in the mail from Nuvell. However, that is exactly what I received today. Infact a check for $1012, marked as cancelation of life and disability (insurance). I only had Nuvell a few months, and am amazed that I had even paid that much. I am thanking God for this check it will make some great inroads to paying off my credit card as well as making a nice payment on my car loan to. Once I have paid extra on the car loan, I will switch to weekly payments, so that I can keep the interest rates down and get that car loan paid off sooner.
I will use $400 for the credit card, while another $400 for the car loan and use the other $200 to pay on the medical bills (or maybe car tags - due in October).
With this infusion, from God, I beleive that I am well on my way to meet my ambitious goal of having the credit card and the home improvement loan paid off by the end of the year.
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Yea!!! Good for you. Funny how things turn around when you take positive steps to "help thyself". God, always has your backside.
ReplyDeleteI hope and pray your life gets easier. I think if I was you I would not split that money up, but apply it to one thing only so that the monthly crunch would be eased. Maybe pay off the doctor bills or a credit card.
Kevin:
ReplyDeleteHow's your emergency fund coming? I'd like to see a little more in there before paying off debt...
...remember the baby steps...
Pyro-
ReplyDeleteHi, been a while. Yes, I remeber the baby steps.
My emergency fund has taken a hit to pay for my quarterly insurance bills that are not in my budget, due to my very small salary. I have $25 automaticly deposited into the savings (and even use a different credit union, then where my checking is). I need to check on the balance, but I am trying to not focus on that account to much.
Because, my salary is so small and I have yet to find a 2nd job (I interviewed for a part time sales job with the local Christian paper last week), I want to get these debts paid off, so that everything fits into my budget, and I can more comfortably fund my emegency savings.
out of this windfall, I paid the following:
ReplyDelete$300 - Car Loan
$320 - Emergency Room debt (12/25/05)
$66 - ER Doctor (12/25/05)
$310 - Credit Card
Although I really would like to get the CC paid off, to really help improve my budget.
I understand you want to pay off the debts...but if you are current with everything, then you need to have that baby emergency fund in place.
ReplyDeleteWhat would you do if you had an $800 emergency? You would have to borrow to pay it off...then you're back where you started.
I'm on your team, man...just don't want to see you exposing yourself to this much risk.
Pyro -
ReplyDeleteThat's just it I am not current and if I try to put more in savings I would be in worse shape. I only make $19,000 to $20,000. An amount that even Dave says, to only build a $500 EF to begin with. I however, am forging ahead to have the $1000 not to mention the 3-6 months of savings.
Prince, I'm with you on this one. Unusual??? I can't justify saving at 1% - 5% when you are paying high teens and/or 20's on debt.
ReplyDeleteMaybe Mr. Pyro can see that if you pay down your debts and lower your monthly's using the extra cash from this. Keep maintaining payments at their current amounts you will be paid sooner and be able to fund your emergency fund, with no stress and clear profit. If you are disciplined it will happen faster this way. IT IS ALL IN YOU. Do you have the strength to be disciplined.
You know inside you what needs to be done. Follow your gut, it is different for all!
D -
ReplyDeleteThanks for your kind words and advice. I think Pyroguy missed the post I amde detailing how tight my budget was. With his job, he isn't able to gt in to the blog as often as he would like.
He is the cordinator for one of Dave Ramsey's classes in Topeka and is trying to go strictly by those teachings, not realizing that I don't make the average $30,000-$40,000 that Dave bases his basic teachings on.
Kevin:
ReplyDeleteYou're right. I missed that you were behind. In that case, you need to be doing all you can to get current on your bills BEFORE doing any saving.
We just started a new class, by the way. Sundays, 3-5. You're welcome to join us.
We've also got some Crown Financial Ministries counselors in the class this time. They're helping teach the small group sessions.
Remember our goal that we (my wife and I) promised the class by Nov. 1st? We met it last friday. *high five*.
Hope to see you soon.