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HeathKernandez
Our Ron is an awesome Ron
Member since 4/07 9091 total posts
Name:
baby fish mouth
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ugh dilemma! -WWYD?
I just got my bill for the next 6 months of our car insurance. It is 1399.60 to which I normally pay it monthly (approx. 236 a month) If I pay it in full it NOW it includes a discount and will be 1275.60
that's a 124 dollar difference...
Now... my student loans will be coming in.. I took them out because I get taxed by the government for my tuition remission so my paychecks are SIGNIFICANTLY lower... I took out about an extra 1000.00 to cover this tax.
Should I save the 124.00 and pay the insurance in full, and risk running 'low' on funds later?
on the bright side... I wouldn't be paying 236 a month for insurance as it will already be paid. I *think* I can discipline myself enough to not spend the extra 236 a month lifted... you know?
WWYD?
is saving 124 dollars worth it, or should I just budget it per month as usual.
EDIT:
add on 3.50 installment fee for each month so I'll be saving 145.00 in total.
Message edited 2/11/2009 2:24:37 PM.
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Posted 2/11/09 2:05 PM  |
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HeathKernandez
Our Ron is an awesome Ron
Member since 4/07 9091 total posts
Name:
baby fish mouth
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Re: ugh dilemma!
ok to make it even MORE confusing... I was just offered 3.99% interest on purchases for 6 months on a CC I just paid off. If I use THAT CC to pay the insurance, then I will be paying a total of 1290.24 (including the interest) at a rate of 215.04 a month
(a difference of 14.64... so I'll save 130.36 instead of 145.00)
Message edited 2/11/2009 2:18:23 PM.
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| Posted 2/11/09 2:13 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: ugh dilemma! -WWYD?
You are getting a 20% after tax return if you pay your car insurance early. That sounds like the no-brainer move.
I wish GEICO did that. They simply charge you $4 per month to carry a balance. No discounts for paying early.
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| Posted 2/11/09 2:27 PM |
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JenMarie
One day at a time
Member since 11/07 7397 total posts
Name:
Jennifer
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Re: ugh dilemma! -WWYD?
Posted by ave1024
I wish GEICO did that. They simply charge you $4 per month to carry a balance. No discounts for paying early.
Really? We pay ours monthly and are not charged $4 per month. We pay $1 per month I think (installment fee?).
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| Posted 2/11/09 2:30 PM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: ugh dilemma! -WWYD?
you are a good egg.
pay it up in full, with the cash.
if worse comes to worst, take you cc up on the offer IF AND WHEN you need to...but no sense in giving them any money if you have the opportunity and the where-with-all.
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| Posted 2/11/09 2:31 PM |
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HeathKernandez
Our Ron is an awesome Ron
Member since 4/07 9091 total posts
Name:
baby fish mouth
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Re: ugh dilemma! -WWYD?
Posted by ave1024
You are getting a 20% after tax return if you pay your car insurance early. That sounds like the no-brainer move.
I wish GEICO did that. They simply charge you $4 per month to carry a balance. No discounts for paying early.
They charge me 3.50 to pay per month... So, with the 124.00 discount to pay in full plus the additional 21.00 in installment fees, I'm saving 145.00
Now, I have to decide if I should put it on the CC with the 3.99% offer OR blow my loan money on this... I think I'd rather do THAT b/c I don't want to blow the extra loan money right away, in case we need it due to my decrease in income...
decisions... decisions....
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| Posted 2/11/09 2:31 PM |
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HeathKernandez
Our Ron is an awesome Ron
Member since 4/07 9091 total posts
Name:
baby fish mouth
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Re: ugh dilemma! -WWYD?
Posted by Ophelia
you are a good egg.
pay it up in full, with the cash.
if worse comes to worst, take you cc up on the offer IF AND WHEN you need to...but no sense in giving them any money if you have the opportunity and the where-with-all.
THANK YOU.. I think I just needed to hear someone SAY IT.
btw- I'm totally paying for it on my Toys R Us CC and THEN pay THAT card in full when the loan money comes in
GOTTA GET THEM POINTS!!!
Message edited 2/11/2009 2:33:49 PM.
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| Posted 2/11/09 2:31 PM |
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HeathKernandez
Our Ron is an awesome Ron
Member since 4/07 9091 total posts
Name:
baby fish mouth
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Re: ugh dilemma! -WWYD?
Posted by ave1024
You are getting a 20% after tax return if you pay your car insurance early. That sounds like the no-brainer move.
I wish GEICO did that. They simply charge you $4 per month to carry a balance. No discounts for paying early.
btw, I used to have geico... we switched to allstate and they even lowered our rate this year b/c neither of us had any kind of 'incidents'
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| Posted 2/11/09 2:32 PM |
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MeNBobs
*****
Member since 4/07 3765 total posts
Name:
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Re: ugh dilemma! -WWYD?
If I can pay things off in full I like to do that. When you say have funds run low what do you mean? Do you mean you will have to eat cat food for a month since you can't go grocery shopping or do you mean you will have to skip out on a few dinners out? If paying it off in full means you may not be able to pay other bills i would just pay it in installments.
As much as I like paying things off in full I wouldn't want to leave myself in dire straits. I would avoid putting it on the CC just because i don't like carrying a balance on any cards.
Call Suze Orman
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| Posted 2/11/09 2:32 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: ugh dilemma! -WWYD?
Posted by Jennifer907
Posted by ave1024
I wish GEICO did that. They simply charge you $4 per month to carry a balance. No discounts for paying early.
Really? We pay ours monthly and are not charged $4 per month. We pay $1 per month I think (installment fee?).
Could be that too. The auto insurance bill is one that I am not "responsible" for in my household.  So I could be wrong.
I do know that GEICO does not offer a significant discount for pre-paying like the OP is getting.
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| Posted 2/11/09 2:33 PM |
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brownie
Baby #1 is here!
Member since 11/08 13903 total posts
Name:
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Re: ugh dilemma! -WWYD?
I'd pay it in full and just be careful spending fo the next few months
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| Posted 2/11/09 2:35 PM |
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HeathKernandez
Our Ron is an awesome Ron
Member since 4/07 9091 total posts
Name:
baby fish mouth
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Re: ugh dilemma! -WWYD?
Posted by MeNBobs
If I can pay things off in full I like to do that. When you say have funds run low what do you mean? Do you mean you will have to eat cat food for a month since you can't go grocery shopping or do you mean you will have to skip out on a few dinners out? If paying it off in full means you may not be able to pay other bills i would just pay it in installments.
As much as I like paying things off in full I wouldn't want to leave myself in dire straits. I would avoid putting it on the CC just because i don't like carrying a balance on any cards.
Call Suze Orman
no... it means that I'll pretty much be able to ONLY pay my bills... I've always been good with moving money around and not creating a bigger amount of debt in the process... I just like to keep a min. of 500 in my checking account... for *what ifs*
DH & I handle money very differently so we have separate accounts, etc.... We're starting to SAVE $ together though.
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| Posted 2/11/09 2:35 PM |
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HeathKernandez
Our Ron is an awesome Ron
Member since 4/07 9091 total posts
Name:
baby fish mouth
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Re: ugh dilemma! -WWYD?
Posted by ave1024
Posted by Jennifer907
Posted by ave1024
I wish GEICO did that. They simply charge you $4 per month to carry a balance. No discounts for paying early.
Really? We pay ours monthly and are not charged $4 per month. We pay $1 per month I think (installment fee?).
Could be that too. The auto insurance bill is one that I am not "responsible" for in my household. So I could be wrong.
I do know that GEICO does not offer a significant discount for pre-paying like the OP is getting.
this is the first time I've had a significant saving for paying in full... other times it was only a difference of about 20 dollars.
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| Posted 2/11/09 2:36 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: ugh dilemma! -WWYD?
Posted by KeithHernandez
Posted by ave1024
You are getting a 20% after tax return if you pay your car insurance early. That sounds like the no-brainer move.
I wish GEICO did that. They simply charge you $4 per month to carry a balance. No discounts for paying early.
btw, I used to have geico... we switched to allstate and they even lowered our rate this year b/c neither of us had any kind of 'incidents'
I know I can get a better rate if we moved. But we already had one brand new car completely totalled on the policy a few years ago. GEICO handled it, AND didn't raise my rates because my accident forgiveness kicked in (yes it really does work). Their customer service was incredible.
We even still have a 5yr good driving record/discount on our policy. So I stick with them because they took care of me. Not worth it for me to move to save $10-20 a month.
My auto rates aren't THAT bad anyways. I said to myself i'll re-visit the auto insurance situation if Liberty Mutual ever drops my homeowners as they are dropping other homeowners on Long Island. Then i'll look for a company to handle both homeowners + car with maximum discounts.
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| Posted 2/11/09 2:38 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: ugh dilemma! -WWYD?
Posted by KeithHernandez
this is the first time I've had a significant saving for paying in full... other times it was only a difference of about 20 dollars.
If it were me, I would take that $100+ discount every day, and twice on sundays.
Way better return than the 5.25% interest I earn with my cash sitting in the bank.
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| Posted 2/11/09 2:42 PM |
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HeathKernandez
Our Ron is an awesome Ron
Member since 4/07 9091 total posts
Name:
baby fish mouth
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Re: ugh dilemma! -WWYD?
Posted by ave1024
Posted by KeithHernandez
Posted by ave1024
You are getting a 20% after tax return if you pay your car insurance early. That sounds like the no-brainer move.
I wish GEICO did that. They simply charge you $4 per month to carry a balance. No discounts for paying early.
btw, I used to have geico... we switched to allstate and they even lowered our rate this year b/c neither of us had any kind of 'incidents'
I know I can get a better rate if we moved. But we already had one brand new car completely totalled on the policy a few years ago. GEICO handled it, AND didn't raise my rates because my accident forgiveness kicked in (yes it really does work). Their customer service was incredible.
We even still have a 5yr good driving record/discount on our policy. So I stick with them because they took care of me. Not worth it for me to move to save $10-20 a month.
My auto rates aren't THAT bad anyways. I said to myself i'll re-visit the auto insurance situation if Liberty Mutual ever drops my homeowners as they are dropping other homeowners on Long Island. Then i'll look for a company to handle both homeowners + car with maximum discounts.
yeah, I was happy with Geico as well and they handled an accident I was in...
When DH & I got married and combined our insurance we shopped around and went with the better rate... I'm praying it doesn't bite me in the arse if we ever get into an accident... I would have stayed with geico if DH & I didn't combine our lives (hahah) I liked geico.. I like allstate so far... but we shall see.
I like em even MORE today
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| Posted 2/11/09 2:45 PM |
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neenie
Member since 5/05 22351 total posts
Name:
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Re: ugh dilemma! -WWYD?
I would just pay it off- but i REALLY hate monthly bills and would do that anyway just so i wouldn't have to think about it. Especially since you would be saving so much- i think its a no-brainer. You have the CC for emergency situations, so its not like you would be up the creek without a paddle.
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| Posted 2/11/09 2:48 PM |
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LoveyQ
Stalkers, get a life.
Member since 11/07 12820 total posts
Name:
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Re: ugh dilemma! -WWYD?
ITA with the previous posters who said to pay it off now, and take the 20% discount (awesome!) and use the cc's if and when you need them.
Then, set up an automatic transfer of the $200+ you would have been sending each month to put it into savings, so that you'll pay yourself back if you KWIM.
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| Posted 2/11/09 2:56 PM |
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kristinel
Steinbeck
Member since 5/08 1224 total posts
Name:
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Re: ugh dilemma! -WWYD?
I always pay my car insurance in full, so I would say pay it all now.
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| Posted 2/11/09 3:04 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: ugh dilemma! -WWYD?
Posted by MrsQ-in2007
ITA with the previous posters who said to pay it off now, and take the 20% discount (awesome!) and use the cc's if and when you need them.
Then, set up an automatic transfer of the $200+ you would have been sending each month to put it into savings, so that you'll pay yourself back if you KWIM.
Yes. Just one thing... when I said 20% I didn't mean 20% discount (just so people don't get confused).
I was talking about a 20% yearly return you would get on your cash by paying it off early.
The easy way to look at it is see what interest rate you get with your savings account. 2-3% if you're lucky? Well paying this off gets you 20% on that money.
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| Posted 2/11/09 3:05 PM |
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LoveyQ
Stalkers, get a life.
Member since 11/07 12820 total posts
Name:
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Re: ugh dilemma! -WWYD?
Posted by ave1024
Posted by MrsQ-in2007
ITA with the previous posters who said to pay it off now, and take the 20% discount (awesome!) and use the cc's if and when you need them.
Then, set up an automatic transfer of the $200+ you would have been sending each month to put it into savings, so that you'll pay yourself back if you KWIM.
Yes. Just one thing... when I said 20% I didn't mean 20% discount (just so people don't get confused).
I was talking about a 20% yearly return you would get on your cash by paying it off early.
The easy way to look at it is see what interest rate you get with your savings account. 2-3% if you're lucky? Well paying this off gets you 20% on that money.
Good point - I didn't do the math at all, just referenced your number so thanks for clearing that up so *I* don't confuse anyone else! lol Still, she's saving a bit over 10% by prepaying, so that's great!
Message edited 2/11/2009 3:21:53 PM.
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| Posted 2/11/09 3:20 PM |
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MrsDrMatt
Live and RUN like a Ninja!
Member since 5/06 3104 total posts
Name:
MrsDrMatt
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Re: ugh dilemma! -WWYD?
if you can afford to pay the whole thing now, do it.
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| Posted 2/11/09 3:31 PM |
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