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Rains it pours. Ramsey debt snowball and a dead air conditioner. Updated page 3
Posted on 2/12/15 at 8:02 pm
Posted on 2/12/15 at 8:02 pm
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.
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.
This post was edited on 2/16/15 at 11:30 am
Posted on 2/12/15 at 8:17 pm to LSU alum wannabe
How much in your emergency fund?
Options:
1. Replace the compressor.
2. Contact your electric company and see if they have an incentive plan to convert to high efficiency systems
3. Purchase a window unit and get a second job to earn money to replace major system
Those would be Dave options
How much equity in your home? Do you belong to a credit union? If not join one and go talk to them
Options:
1. Replace the compressor.
2. Contact your electric company and see if they have an incentive plan to convert to high efficiency systems
3. Purchase a window unit and get a second job to earn money to replace major system
Those would be Dave options
How much equity in your home? Do you belong to a credit union? If not join one and go talk to them
Posted on 2/12/15 at 8:19 pm to LSU alum wannabe
I would look at which option provides the lowest interest rate with length of loan you can reasonably afford.
Posted on 2/12/15 at 8:20 pm to LSU alum wannabe
How much is the compressor to fix and how much is it to replace?
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.
If you get it fixed, then stop doing your snowball until you get your $1000 emergency fund back up, then continue doing snowball.
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.
If you get it fixed, then stop doing your snowball until you get your $1000 emergency fund back up, then continue doing snowball.
Posted on 2/12/15 at 8:50 pm to pakowitz
quote:
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.
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.
Posted on 2/12/15 at 8:59 pm to LSU alum wannabe
Since its still February, I would work my arse off for the next month doing odd jobs like building fences and replace it just in time for warmer weather. I would not borrow against the 401k.
Posted on 2/12/15 at 9:11 pm to Creamer
quote:
Since its still February,
Hell. How do you think we found the problem. We ran it last week.
Air one week. Heater the next.
Posted on 2/12/15 at 9:13 pm to Creamer
I'm confused, you say you need 5-8 grand but compressor is only $1k to replace? Go get 2-3 more quotes on repair vs replacement. Look for a smaller outfit that can give you a fair price, rather than a larger outfit more interested in selling you a new one.
Posted on 2/12/15 at 9:17 pm to hungryone
quote:
you say you need 5-8 grand but compressor is only $
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.
Posted on 2/12/15 at 9:23 pm to LSU alum wannabe
So for $700 out of pocket you can fix it instead of replace it? Fix it and move on
Posted on 2/12/15 at 9:27 pm to Tigerpaw123
quote:
So for $700 out of pocket you can fix it instead of replace it? Fix it and move on
But it's pushing 20 years old. What else can go on it?
Posted on 2/12/15 at 9:30 pm to LSU alum wannabe
You can just vent the freon in the air and viola! No more disposal fee.
Posted on 2/12/15 at 9:31 pm to LSU alum wannabe
Sure there is the possibility that something else may break, but also the strong possibility nothing will break, i am guessing the house is 18 years old , are you going to replace everything else mechanical in it because it might break? At $700 you fix it and move on and try to be in a better position when you do have to replace it. if it was a $3000 repair and a 5200 replacement I would go with the replacement , but in your current situation I would repair it
Posted on 2/12/15 at 9:32 pm to LSU alum wannabe
quote:
But it's pushing 20 years old. What else can go on it?
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.
Posted on 2/12/15 at 10:23 pm to LSU alum wannabe
If this affects you, R-22 refrigerant can't be used in new installations but can be used in old ones. However, even that goes away in 2020. So if your 18 year old unit uses that you will probably have to replace anyway.
If I were you, I'd definitely look into side jobs to boost your income. They have the extra benefit that you're too busy working to spend on dumb stuff.
Have you looked into refinancing your mortgage? Rates are really low again.
If you are current on your payments, also consider calling a card company and asking for a rate reduction. It costs nothing to ask and they'll often do it if you have a decent record with them.
Last question - what sort of mansion do you live in that requires a 5 ton unit?
If I were you, I'd definitely look into side jobs to boost your income. They have the extra benefit that you're too busy working to spend on dumb stuff.
Have you looked into refinancing your mortgage? Rates are really low again.
If you are current on your payments, also consider calling a card company and asking for a rate reduction. It costs nothing to ask and they'll often do it if you have a decent record with them.
Last question - what sort of mansion do you live in that requires a 5 ton unit?
Posted on 2/12/15 at 10:46 pm to foshizzle
quote:
Last question - what sort of mansion do you live in that requires a 5 ton unit?
2 story 2500 sf house. But living room has huge 1980's style vaulted ceiling.
Posted on 2/12/15 at 11:14 pm to LSU alum wannabe
So you really didn't do Dave since you didn't have an e-fund.
Given what you have said, I take the bandaid approach today and kick the can down the road. What is an HVAC "system"? Really, it's a collection of parts. Compressor is one of the most expensive parts. You might be able to replace parts over time and end up with a like-new system.
If you really want to finance the repairs, see what kind of financing, if any, the HVAC company offers. I know the company we use always advertises "no credit check financing". I've never had to use it, so I have no idea what it entails.
Given what you have said, I take the bandaid approach today and kick the can down the road. What is an HVAC "system"? Really, it's a collection of parts. Compressor is one of the most expensive parts. You might be able to replace parts over time and end up with a like-new system.
If you really want to finance the repairs, see what kind of financing, if any, the HVAC company offers. I know the company we use always advertises "no credit check financing". I've never had to use it, so I have no idea what it entails.
Posted on 2/13/15 at 4:00 am to LSU alum wannabe
quote:
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.
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.
Posted on 2/13/15 at 5:41 am to Double Oh
quote:
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.
Yeah - you generally do the steps in order - Baby Step 1 is the $1000 emergency fund (and this has been around long enough, I would even say $1000 to $2000 - because there are some emergencies that $1000 won't make a dent in.)
THEN - you do the debt snowball (Baby Step 2).
Baby Step 1 is generally supposed to be life, limb and protect your source of income emergencies, but a failed roof or AC compressor would certainly qualify.
Congrats to the OP for being proactive, though.
Posted on 2/13/15 at 5:58 am to Ace Midnight
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.
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.
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