WWDD? Hypothetical Question Just For Fun ~ Want Opinions!

**bumplett** · 08-29-2009, 10:41 AM

Ok, just for fun - I'm going to throw out a hypothetical senerio - we'll call it "What Would Dave Do..."

First, if I've followed Dave's plan exactly - I have $1000. in an emergency fund. I'm snowballing debt. I only have $100 left on one small debt.

My car dies. The transmission goes out and it costs $1600 for a new transmission. (this is an actual true life amount as my hubby's truck just suffered fromt his ailment)

If Dave says to never use credit cards - and I've chopped all of mine up into little pieces -

I use my $1000, but WHERE is the other $600 supposed to come from if not a cc??

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**Jamauk** · 08-29-2009, 11:08 AM

When reading the DR book, my husband and I asked ourselves the very same question. This is why we put our cc's in the file cabinet, locked away. They aren't in our wallet, but they are still there in an emergency. Sadly, most true emergencies rarely cost less than $1000.

Also, how much are you putting toward your snowball each month? You could just pay the minimum for this month and put the snowball amount toward the truck repairs. I don't know how much closer that would get you??

**nuisance26** · 08-29-2009, 11:54 AM

~Well, you either have a larger EF to begin with or you make a deposit on the transmission work and agree to make monthly payments on the balance. Well, at least that's what I would do without a credit card.~

**bumplett** · 08-29-2009, 12:07 PM

this isn't a real issue, it just brought up the question - so we're good. In all honesty, we put the balance on a cc. I'm fine with it. I think that's what a cc is for (an emergency when you don't have the cash)

In the real world, I don't think a car mechanic would take "payments" - that type of job is "pay when services rendered" - otherwise, you're not getting your car back - which is what lead us to the question in the first place - how can you get through certain situations without the use of a cc??

I don't think it's a good idea to chop them all up into little pieces.

but that's JMO.

I want everyone else's.

**nuisance26** · 08-29-2009, 12:17 PM

~Well, by your own admission, you only 'think' the mechanic wouldn't accept payments. I know there are mechanics who do accept payments. Even Doctor's offices and hospitals accept payments. You have to ask around sometimes but it is an option when you don't have credit cards.~

**bumplett** · 08-29-2009, 12:20 PM

I think Constance nailed it! I think we all need a larger emergency fund than the proposed $1000. But how much is enough? How long ago did Dave think up $1000?

hmmm......

**bumplett** · 08-29-2009, 12:22 PM

Originally Posted by nuisance26

~Well, by your own admission, you only 'think' the mechanic wouldn't accept payments. I know there are mechanics who do accept payments. Even Doctor's offices and hospitals accept payments. You have to ask around sometimes but it is an option when you don't have credit cards.~

You are so right. I'm only thinking.... but I'll be happy to call a few on Monday afternoon just to ask.

If the mechanic will accept payments, will they charge a fee?

Wouldn't it be the same as using a cc since it's still debt??

**bumplett** · 08-29-2009, 12:42 PM

I know the vet will NOT accept payments - so we can flip a senario to my dog - he has a broken leg because he fell down the stairs - the cost is $1600 - where does the other $600 come from if not a cc?

:giggle:

**Judi Dial** · 08-29-2009, 12:44 PM

My opinion only: I'd give the garage the $1000.00 and make arrangemens to pay off the balance as fast as you could. If they won't deal with you, see if you can get a signature loan at your bank and pay it back ASAP. When that's done, rebuild your emergency fund.

Judi

**bumplett** · 08-29-2009, 12:45 PM

ok, my SIL just tossed another idea onto the pile:

If you call around, find the lowest price first - say it costs $1400, but they don't accept payments - or $1600 and they do accept payments - which do you do??

**nuisance26** · 08-29-2009, 12:45 PM

~I remember reading Dave Ramsey as a teenager 10+ years ago. Maybe "Financial Peace"? Don't remember. Anyway, I assumed he chose $1K because it would be an obtainable goal to someone deep in debt, not necessarily because it was the best amount to have on hand. I think that's a decision best left up to the individual and their particular circumstances and comfort level.
As far as the mechanic taking payments and it being another debt, I think that a small fee would be better than credit card interest.~

**bumplett** · 08-29-2009, 12:47 PM

Originally Posted by Judi Dial

My opinion only: I'd give the garage the $1000.00 and make arrangemens to pay off the balance as fast as you could. If they won't deal with you, see if you can get a signature loan at your bank and pay it back ASAP. When that's done, rebuild your emergency fund.

Judi

good one!!

**freebs** · 08-29-2009, 02:13 PM

I know a mechanic that wont take payments and that is my husband. We started out taking payments and people would sign a contract agreeing to pay xx per week/month whatever. We kept the car in a garage. Well one of them in the middle of the nite broke in and tried to steal there car, the other one called teh cops and said we stold their car. All in all it was a big pain in the behind so we no longer take payments. We will gladly give you an estimate but no payment plans!

**savvy_sniper** · 08-29-2009, 04:59 PM

The transmission went out on my car a while back. The mechanic agreed to take payments. BUT the mechanic knew my entire family and worked on their cars on a regular basis.

Also my vet takes payments. They won't take $10 a month, but they will let you pay a big portion down and then payments over the next next couple of months. This is a well established vet, in an older building, that has paid off his student loans and business property.

I recently broke a tooth and had to have a crown put on. The dentist NORMALLY required half at 1st visit and half when the permanent crown was put on. BUT because I have used them for about 5 years, they agreed to 1/3 at initial visit, 1/3 when permanent crown put on, and 1/3 a month later.

It helps if you have a previous business relationship or a family/friend referral.

I need to have my transmission worked on. Hubby rides the Harley to work whenever possible. When he does, I can use his truck. I work from home; so there isn't a lot I need to do. We were saving to pay cash for the transmission work, then I broke my tooth, etc. My truck is still sitting in the driveway. Now we are saving to pay HALF when the truck is repaired and the mechanic will let us pay the balance in monthly payments.

Mechanics are hurting for business in this economy. People are doing their own repairs, putting them off, etc. That is what my mechanic told me. They have been in business for years.

**dcompton** · 08-29-2009, 07:31 PM

What would I do in that scenario? Panic.

Maybe I'm a pessimist, but I think you might be up that proverbial creek without a paddle. You might be able to find a mechanic who would take payments, then again you might not. I have no experience with bank loans for years and years, but my guess is that it might not be as easy to get one as it used to be. If you have long standing relationships with a mechanic or a bank, you might be able to, but what if you don't? What if you are new in the area? Or maybe just changed banks? The old one won't love you for leaving, and and new one won't know you yet.

I use my CC for convenience, but even if I didn't, I would probably keep it for a last ditch safety net in this kind of situation. If they are paid off and costing nothing, why cut them up? It's a bit of insurance when it rains on life's parade. But I know that's not the common opinion here, and if you really have trouble not using them, it probably wouldn't work.