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Still debate this...

March 22nd, 2010 at 10:01 am

With the additional inheritance... I have $11,336 in savings, not counting our $1000 emergency fund.

So I struggle to come to terms with the idea of dealing with the $8750 I have in CC debt.

If I paid off all my CC debt (keep in mind, DH still has a $27K balance on his), it would still leave me with $2500

For a total EF balance of $3500. Yet, its not high interest debt... 1.99% and 6.74% after the intro rate.

I get a better rate of return on my retirement accounts. Last year DH got a 25% return on his TSP and we barely put any money in. This was largely because I anticipated the whole Nov '08 drop and transferred the money into government secured funds and slowly, month by month, re-invested it.

I guess patience is key. Like weight loss.

I could easily pay off my card, but the key really is making sure I've addressed the behaviors that led to the CC debt.

That said, once I have the card paid off... I'm canceling the card. I'll only keep 2 cards from there on out with a total maximum balance of $6K, maybe not even that. I don't know. But I plan to significantly downsize my credit report & finances.

The other question I struggle with is the playset my Dad bought. It was a $900 playset... the last gift he gave the kids.

Since we're moving, I don't think the Navy movers will move it. So I debate selling it or trying to move with it. Moving it would cost a lot, I'm guessing we'd have to get a POD or something.

But on the other, I struggle to part with it. Its only a year old and it was built to last 10 years. I wonder if my Dad would be upset that we'd have to part with it just cause of a move.

My husband just wants to leave it here for the tenants. Which I am adamant against. I don't need a tenant to get hurt on the playset and claim liability against us for assembling the playset.

So whatever happens, its either getting sold or we're taking it with us. But I can't decide & we don't have too much time since we will probably be moving within the next 3-4 months.

8 Responses to “Still debate this...”

  1. nmboone Says:

    Sucks that you have to make a decision about the playset. I guess the way I think is that your dad would probably understand about the move. The kids will probably not appreciate it once they get older anyway. It must be hard to decide however. Plus it will cost you to move it, and I didn't know your dad, but trying to think relatively, I don't think my dad would want me to spend a whole lot of money moving it. Also selling it would enable you to buy another set if you would like. It wouldn't be as special but it would be the same amount of money. Good luck with your decision.

  2. creditcardfree Says:

    I would definitely find out about the cost to move it. That money could come from your inheritence money! Only move it if your kids will continue to use it. Another options is to sell it, then take the sales cash plus some inheritence money, if necessary and buy a new one when you get there.

    Yes...don't pay off your cc with the inheritence money. Consider all of that money your emergency fund. Part of ours was funded this way. Create new spending habits as you pay off the debt and you'll be much richer for it!

  3. momcents Says:

    Take the playset with you! If it has a lot of life left in it and was a gift from Grandad, use the inheritence to move it!

  4. snshijuptr Says:

    Unless you plan to put the money in your retirement account or another account earning more than 1.99% and 6.74% interest, then you would be better off paying off the debt on those cards. You already have a decent amount in your EF to start you off, and I would be impressed if you have a savings account earning even 1.99% interest.

  5. ambitioussaver Says:

    Well the PODs idea to move the playset is out, $5000 to move. So unless we plan to do a DITY move, looks like we'll need to sell the playset & I can put the money towards getting them a new one. The playset was only $900 and I need to keep in mind that a landlord may not let us have a playset.

    Either way, I'm probably going to call my Aunt (the sister my Dad lived with) and ask her what Dad would have wanted me to do. I think that will help me feel at peace with the decision.

  6. Ima saver Says:

    I agree that you should sell it. It is not worth the cost to take it with you.

  7. creditcardfree Says:

    Yep...based on that cost, you need to sell it. Some other children will love to get such a nice set!

    I didn't comment on your debt vs emergency fund. But I still think you need to hold on to at least $10K for an emergency fund. With emergency funds it isn't about the interest rate!

  8. ambitioussaver Says:

    Well, I did manage to find out the Navy would move it after all. We'd just have to dismantle it. DH is not looking forward to that or may even be unwilling to. So I'm considering maybe looking into hiring a handyman to help dismantle it. All in all, if I can find a way to send it for $500 - I might be able to move it. Still investigating.

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