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re: Rains it pours. Ramsey debt snowball and a dead air conditioner. Updated page 3
Posted on 2/13/15 at 6:07 am to LSU alum wannabe
Posted on 2/13/15 at 6:07 am to LSU alum wannabe
So you have a 2500 sq ft house and don't have a savings account... Sell the house and buy one you can afford.
Posted on 2/13/15 at 6:46 am to eng08
Sell the freon to some crack heads, that will make you some money.
Posted on 2/13/15 at 7:01 am to tigeralum06
quote:
So you have a 2500 sq ft house and don't have a savings account... Sell the house and buy one you can afford.
Had savings. Life happens. We did not buy this house recently. Be 10 years this summer. Katy is one of the fastest growing areas. Housing is booming. To sell now is crazy. We would be homeless. Renting is not even an option. To rent now is 2 grand minimum because housing has gone up. Our cheapest option is staying put and continue to build upon the only equity we have.
And no to all mentioning the Ramsey baby step one. We just panicked and started paying small shite off.
Posted on 2/13/15 at 7:23 am to LSU alum wannabe
Katy won't be booming long with $40 oil
Posted on 2/13/15 at 9:45 am to yellowfin
i'm not a ramsey disciple, but i'd fix the a/c and go on about my business. if you say you paid off some small debts, that should have freed up enough cash to fix a/c in a month or two. since you don't need a/c right now, live a frugal couple months and get it fixed. then save up a little cash like everyone else says and go back to paying down debts (or invest in your retirement - there is no one correct way to do this).
Posted on 2/13/15 at 11:08 am to LSU alum wannabe
I would look at a HELOC. Wall St prime rate is 3.25%.
This post was edited on 2/13/15 at 11:10 am
Posted on 2/13/15 at 1:26 pm to LSU alum wannabe
quote:
But it's pushing 20 years old. What else can go on it?
This is the mindset that got you into debt in the first place. You're trying to rationalize going into further debt over a purchase you don't really need. Fix it for the $700 and get back on track.
Posted on 2/13/15 at 2:07 pm to LSU alum wannabe
We are currently doing the debt snow ball right now. My Fiance and I have $1500 saved for emergencies.
I know you would like to replace it and I agree it should at some point be replaced.
If I were in your shoes, I would get several quotes to fix it and ask the professional how long do they think it would last.
Then after its fixed, save your $1000 for your emergency fund, then continue your snowball.
It will be hard but you have to have money for emergencies! That is why the emergency fund is Step 1 of the baby steps and the snow ball is step 2!
"Baby Step 1
$1,000 to start an Emergency Fund
An emergency fund is for those unexpected events in life that you can’t plan for: the loss of a job, an unexpected pregnancy, a faulty car transmission, and the list goes on and on. It’s not a matter of if these events will happen; it’s simply a matter of when they will happen. "
Once you are finished, you can have it replaced.
I know you would like to replace it and I agree it should at some point be replaced.
If I were in your shoes, I would get several quotes to fix it and ask the professional how long do they think it would last.
Then after its fixed, save your $1000 for your emergency fund, then continue your snowball.
It will be hard but you have to have money for emergencies! That is why the emergency fund is Step 1 of the baby steps and the snow ball is step 2!
"Baby Step 1
$1,000 to start an Emergency Fund
An emergency fund is for those unexpected events in life that you can’t plan for: the loss of a job, an unexpected pregnancy, a faulty car transmission, and the list goes on and on. It’s not a matter of if these events will happen; it’s simply a matter of when they will happen. "
Once you are finished, you can have it replaced.
This post was edited on 2/13/15 at 2:11 pm
Posted on 2/13/15 at 3:18 pm to LSU alum wannabe
I would call some AC places most if not all offer financing, some as good as 0% for 36mnts. If the unit is 18yrs old it needs to be replaced.
Everyone is dead set against a 401k loan, but it will be the best unsecured interest rate you will find, you can shift your snowball payments to cover the loan and pay it off quickly.
You can also get a tax credit for adding energy efficiency to your house (AC, Solar Panels, New windows etc.) so you may recoup some to pay off the loan quicker.
ETA - if you trunk lines and ducts are in good shape you should expect to pay about $1000-$1200 per ton installed for a new indoor and outdoor unit.
Everyone is dead set against a 401k loan, but it will be the best unsecured interest rate you will find, you can shift your snowball payments to cover the loan and pay it off quickly.
You can also get a tax credit for adding energy efficiency to your house (AC, Solar Panels, New windows etc.) so you may recoup some to pay off the loan quicker.
ETA - if you trunk lines and ducts are in good shape you should expect to pay about $1000-$1200 per ton installed for a new indoor and outdoor unit.
This post was edited on 2/13/15 at 3:21 pm
Posted on 2/13/15 at 3:52 pm to LSU alum wannabe
When an A/C guy tells me I need a new unit, I call plenty more. I always find one that'll patch up my unit in some way or fashion. There is always some sole proprietor looking to get a good new customer.
I do not know you, but when I was in your position once in my life I was there because I always just did the easiest thing which in this case is borrow and buy a brand new unit.
Also, you say the best thing you can do is stay put. Why can you not sell and buy a smaller house? If real estate is booming isn't your house booming too? It is all based on p/s/f. Your comment was very confusing.
I do not know you, but when I was in your position once in my life I was there because I always just did the easiest thing which in this case is borrow and buy a brand new unit.
Also, you say the best thing you can do is stay put. Why can you not sell and buy a smaller house? If real estate is booming isn't your house booming too? It is all based on p/s/f. Your comment was very confusing.
Posted on 2/13/15 at 4:04 pm to lsu13lsu
Why should he sell his house? His unit is 18yrs, in the end an 18yr old unit will cause more headaches and increased costs especially if you start piecing it together.
Call some AC companies see what kind of financing they have, check into a short term 401k loan.
This is the south AC isn't an option...
Call some AC companies see what kind of financing they have, check into a short term 401k loan.
This is the south AC isn't an option...
Posted on 2/13/15 at 4:11 pm to swanny297
When you can get a new compressor for $700 and a new system is going to cost between 5-8K, and there are no known problems with the rest of the system and you are going to have to borrow the money for a new system, the answer is to pay the $700, This is a no brainer
Posted on 2/14/15 at 8:24 am to hungryone
Probably a good idea to inspect the rest of the system. At 18 years you're getting towards the end of a lot of unit's lifespan.
Posted on 2/14/15 at 9:02 am to jmarto1
quote:
Probably a good idea to inspect the rest of the system. At 18 years you're getting towards the end of a lot of unit's lifespan.
Are you experienced with AC? I have a home warranty. So that is some of my issue. They will fix the problem $570 out of my pocket. OR they will give me $1100 "cash out" and I am left to my own devices to repair with anyone. Same $570 job will be 1500 bucks minimum I believe or the a complete system replacement 5-8 grand. BUT if I get nickel and dimed for piece by piece over 3 years???
Posted on 2/14/15 at 9:40 am to LSU alum wannabe
Do not borrow against the wife's 401k. Get on rice and beans, sell some stuff and cash flow the thing.
Posted on 2/14/15 at 9:46 am to FredSecunda
quote:
Do not borrow against the wife's 401k. Get on rice and beans, sell some stuff and cash flow the thing.
+1000 unless you feel like working 5 to 7 more years in your 60s
You cannot replace time in the market - don't even try. If the emergency is that catastrophic, you'd be telling your future self - a tired, worn out 60something year old self, "Sorry buddy - we can't be bothered to make sacrifices right now - you'll just have to work until you die."
Posted on 2/14/15 at 11:34 am to Ace Midnight
Lots of great advise in the thread.
18 year old unit? Its just about run its life expectancy. Its not worth trying to 'patch up'.
Bite the bullet and get it fixed right.
If this is going to be your permanet home, its worth the investment.
Its not like you are wanting to add a pool or patio(which in not a neccesity), your are in south Texas were the summers can get boiling hot.
Sounds like you are struggling a little financially, we have all been there.
If you are in a real pinch, get a couple of window units at Wallyworld or Lowes until you come up with the money.
Work a few other jobs, have a garage sale, sell stuff you really don't need on ebay or Craiglist. Get the wife and kids working.
Cut out extra expenses, go with beans & rice, food is a HUGE expense.
Shop around, get other bids.
Don't trust this to some jake-leg outfit or individual, go with a well established local business.
Good luck.
18 year old unit? Its just about run its life expectancy. Its not worth trying to 'patch up'.
Bite the bullet and get it fixed right.
If this is going to be your permanet home, its worth the investment.
Its not like you are wanting to add a pool or patio(which in not a neccesity), your are in south Texas were the summers can get boiling hot.
Sounds like you are struggling a little financially, we have all been there.
If you are in a real pinch, get a couple of window units at Wallyworld or Lowes until you come up with the money.
Work a few other jobs, have a garage sale, sell stuff you really don't need on ebay or Craiglist. Get the wife and kids working.
Cut out extra expenses, go with beans & rice, food is a HUGE expense.
Shop around, get other bids.
Don't trust this to some jake-leg outfit or individual, go with a well established local business.
Good luck.
Posted on 2/14/15 at 9:29 pm to LSU alum wannabe
If you had 5-8k I would tell you to replace it but you don't so fix it for 700 and repeat after me. I will build up an emergency fund of 1000.00. I will then start to snowball the rest of my debts.
Posted on 2/14/15 at 10:16 pm to LSU alum wannabe
Yea don't borrow against 401k. I took out $6,000 from my 457b to help start my auto glass business. Even though business has been good I still to this day regret going that route.
Posted on 2/14/15 at 11:06 pm to LSU alum wannabe
quote:
Are you experienced with AC?
Not professionally. What I know is from a similar situation at work and years in the restaurant industry. Now I do have a brother that is very experienced and I can ask him any question you need. However, I agree with these guys about not touching your 401k or anything of the sort. If you can't replace right now then go ahead and patch. The most important thing is to have a plan to replace ASAP and not patch again. You've got a few months before the unit gets pushed to it's limits again.
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