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What would YOU do?

March 22nd, 2009 at 02:14 am

I want to minimize the amount of debt we have BUT the rental needs some necessary improvements.

As I said in a previous post it has Polybutylene pipes, it freezes during the winter & they can burst at any point because the pipes are now illegal.

Cost to replumb - $6634

It needs a new HVAC system that is getting installed on Thursday

A rotted fascia board needs replaced (cost unknown)

And I'd like to get termite protection for the house ($1200)

But currently, after buying the HVAC system we are in $99K in non-mortgage debt (Car, HELOC, CC, and Student loans)

I DO NOT want to go over $100K, but my thoughts are... we've already had one pipe burst in the home... what if another bursts or has a slow leak? It could cost even thousands more!

If we do EVERYTHING, then we'll have $110K total non-mortgage debt. $67K of which is between the car & student loans. The rest is the HELOC and credit cards.

I don't know. I feel like I'm being risky by NOT doing the plumbing because a pipe could very well burst, but I also don't like the idea of being so heavily in debt. In May '08 we were $103K in debt, last month we were $92K...

As I said, I don't know. The right thing to do is to get out of debt AND keep the house in good working order.

DH also made the decision to stay here. Financially its what is best and its also better for both of our careers. I'm not too let down, Hawaii will happen - I'm just taking this as a sign that we have more stuff to finish here before we move on.

7 Responses to “What would YOU do?”

  1. momsfirststep Says:
    1237698738

    I know you don't want to be in more debt. But how much money and time would you lose if the pipes did break? It sounds like the probability is high that something might happen b/c the freezing winter and the fact that those types of pipes are illegal. Here in Southern California, you might take the gamble. But ask yourself if it is worth it? Will you be really stressed out worrying about the pipes everytime it gets cold?

  2. Apprentice Bliss Hunter Says:
    1237720684

    I know this probably isn't want you want to hear...BUT there might be a way you can keep you debt at its current level AND get the work done at the same time !!

    Your Car - I don't know how much it is worth. Just say its worth 30,000. Sell it and buy a perfectly good runaround for 15,000. There's 15,000 right away. I know you have small kids and I don't know much about the used car mardet in the US. However, I'm sure your DH could help you find a good, safe and reliable car for that kinda money.

    Just a suggestion....

  3. creditcardfree Says:
    1237730727

    I would at least wait through spring and summer and part of fall before contracting the work. In the meantime, I would make this my savings goal...the most cash you can find to pay this. If you NEED to add the additional amount as debt, so be it.

    Looking for something to sell to offset this is a good idea too.

  4. Ima saver Says:
    1237734176

    You do really need to get the pipes replace. If one bursts it could do many thousands in damage plus you would still have to redo the plumbing.

  5. monkeymama Says:
    1237735178

    I have to agree with the second poster. I was thinking this sounds like a pure necessity. I would do it. BUT I wondered how much of the other debt was really necessary. Or if there was anything else you could downgrade.

    $92k? $110k? It's all the same to me - way too much.

  6. CouponAddict Says:
    1237768040

    What would your insurance cover if the pipes burst? What is your deductable?

    If the illegal pipes burst having the insurance fix the house might be cheaper (just deductable).

  7. AmbitiousSaver Says:
    1237769431

    When the pipe burst in February, I found out insurance doesn't even cover those types of pipes. Nobody will touch those pipes with a ten foot pole.

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