Rains it pours. Ramsey debt snowball and a dead air conditioner. Updated page 3

I would look at which option provides the lowest interest rate with length of loan you can reasonably afford.

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If you're doing Dave's plan, then you should have $1000 emergency fund which may not be enough to replace but should be enough to fix it.

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No emergency fund. We just got a wild hair, shite the bed and started paying when my car was paid off. We used the note to start the snowball.

Cost to replace compressor is over a grand. And the unit is 18 years old. We have a home warranty. But they wanted $580 for repairs due to upgrade s needed and disposal of freon. All of which are not covered. They will cash us out at $1100. Then we have an $1800 repair minimum left over. So still $700 in the hole for a patch job. A year later we may be looking at something else broken.

We are looking at borrowing against wife 401k. That is if available financing is poor.

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Since its still February,

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Hell. How do you think we found the problem. We ran it last week.

Air one week. Heater the next.

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you say you need 5-8 grand but compressor is only $

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Parts and labor is 1500-2000

Then you still have an 18 year old unit. An AC guy would have to tell me what else can go wrong.

You can just vent the freon in the air and viola! No more disposal fee.

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But it's pushing 20 years old. What else can go on it?

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compressor is the most expensive part followed by the coils. the shite thats likely to go out, like contactor and capacitor can easily be replaced by you if you have any kind of common sense.

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Last question - what sort of mansion do you live in that requires a 5 ton unit?

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2 story 2500 sf house. But living room has huge 1980's style vaulted ceiling.

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Getting into the Ramsey debt snowball. Already knocked out three small cards. Then life happened and we got sidetracked. Back on track and now our AC has a grounded compressor. It's an 18 year old 5 ton Trane unit. So we'd prefer to replace it.

What would the money board do? Another credit card? HELOC loan? Is there assistance from the gubment? Personal loan through bank?

What all is involved with going through our home mortgage lender (bank of America) to secure the funds? Is it rolled into our note? Pros/Cons? We are looking at $5-8 grand.

Getting pissed. 2 steps forward 3 steps back. Just want the best option where we can stay on track to keep paying down our debt.

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1-Props to you and the family on doing Daves plan and geting the snowball going. I did it and it can be done.

2-Before the snowball you should of had an emergency fund. After you fix the AC get an emergency fund in place $1000 and then start the snowball working again.

3-Fix the AC do not replace it.

4-Never borrow against the 401K.

5-Pick up another job if possible. Dont know your family situation but if possible get another weekend job. Maybe wife too.

6-Keep doing what your doing it sounds like you have a good plan going. Dont let the AC problem bring you down. Keep up the good work.

Hurricane Gustave smashed in the top of my 15 year old compressor.....fan motor and grille. First AC repair guy on site says it's too old, I can't fix it, you have to replace for five grand. I say no thanks, call the next guy. He looks at it and says, here are the motor specs, go to X place and buy a new one...call me when you get it and I'll put it in for $200. Motor cost $150. I banged the grille flat w a maul and hit it w some PlastiKote spray. And I'm a mere female. Unit is still running today, house has a new owner and compressor was not an issue in presage inspection.

Go find an AC contractor without a fancy truck, big office, or tv commercials. That compressor will prob work fine for another 8-10 years, provided that you are maintaining it properly.
Fixing things is almost always the better option. Mechanical systems aren't designed to be disposable, unlike so many other things in today's society.