Three paydays in October...long

**Sassyclass** · 09-23-2009, 12:00 PM

We have been discussing how we want to spend the extra paycheck next month. My check will take care of the groceries, gas to go on for 2 weeks, and our play money, and have a chunk left over. We will have an extra $1500.00 from hubby's check. We have a few options
1. buy the tent, sleeping bags, and portable heater we have been wanting for emergencies as well as leisure, and put the rest on credit cards.
2. put the whole amount on credit cards, we could pay 2 completely off and divide the remainder on the other 2.
3. We could put the entire amount on paying off the TransAm along with the payment for next month that is already in the bank. This would leave us with about $1000.00 left to pay on it and we would have it paid off a year early.
I want to do the first one and hubby wants to do the last one. We live in a total electric mobile home. We lose power at least once every winter and are left without running water and heat. We already have a portable stove, and shower/toilet.
If we choose our 3rd option and pay the car off a year early it will free up an extra $270 a month to add to what we are already paying on credit cards. Either one of the 3 would work, but I want to be prepared for emergencies, whether it is losing power in the winter, or needing a place to stay while we build our house next year, God willing.
Any and all suggestions are welcome, and what are you doing with your extra check next month?

Cat

**frugalfriend** · 09-23-2009, 12:18 PM

I would definitely put the money on those two smaller credit cards and and say bye-bye to those forever!

Then use the balance of the $ from this month and the $ you would normally be paying on those 2 credit cards next month and get the emergency supplies you need next month.

No extra paycheck for us ~ dh is self-employed and we only get paid once a month on the 1st.

**monkeywrangler71** · 09-23-2009, 12:34 PM

Option 2, unless you have a higher interest rate on your car than your credit cards.
The tent can wait until next year. If your power goes off in the winter you aren't going to go outside and sleep in a tent. Sleeping bags aren't needed unless you don't have any blankets. Get the portable heater if you think you need it though.

**Greebo** · 09-23-2009, 12:37 PM

I think you may be making a fundamental mistake in thinking of this money as "extra".

Take a hard look at your signature. Look at how much money you owe on consumer debt.

Is that really "extra" money? Or is that 3rd paycheck money that can buy your financial freedom all the sooner if you eliminate chunks of that debt with it?

**savvy_sniper** · 09-23-2009, 12:42 PM

Pay off the two small credit card balances and buy the heater. The tent and sleeping bags can wait. Then you can apply the amounts you were paying on those to credit cards to the next debt on your list.

**NikoSan999** · 09-23-2009, 12:44 PM

Which has the higher interest rate, cards or car? When you are building your house can you live in the trailer?

I agree with maybe the heater. I've lived in trailers with no heat, frozen water, melting snow for flushing. Used to live in Ohio. Not good. Heater yes, then whichever is higher interest or frees up the most money to snowball. It dosen't look like you really have a whole lot left on the cards according to your siggy.

**NikoSan999** · 09-23-2009, 12:46 PM

Also, it won't be the last "extra" paycheck. In 3 months there will be another one to add to the snowball needs.

**nodmicks** · 09-23-2009, 01:10 PM

Originally Posted by savvy_sniper

Pay off the two small credit card balances and buy the heater. The tent and sleeping bags can wait. Then you can apply the amounts you were paying on those to credit cards to the next debt on your list.

This is what I would do if in your shoes. I'm assuming you already have a baby emergency fund. If not I'd put it there.

Ours will go in the bank.

**Sassyclass** · 09-23-2009, 01:34 PM

Originally Posted by Greebo

I think you may be making a fundamental mistake in thinking of this money as "extra".

Take a hard look at your signature. Look at how much money you owe on consumer debt.

Is that really "extra" money? Or is that 3rd paycheck money that can buy your financial freedom all the sooner if you eliminate chunks of that debt with it?

Well in a sense it is extra because our monthly bills will be taken care of in the other 2 pays as they normally are, including cc payments. Hubby also gets the money from core barrels from driving on that check. But I do understand what you mean by using the term "extra".
Cat

**Sassyclass** · 09-23-2009, 01:53 PM

This is our last 3 paycheck month as we had 3 paychecks in May. You people are awesome. I think I will have to talk to hubby again. I think we really need to buy the heater. We already have a kerosene heater but with my asthma and living in a mobile home, the fumes, and yes kerosene does put out fumes, and fire hazard are too much. I really want to see the credit card debt gone. We have very little interest left on the car. In fact the next payment should wipe it out and everything after that will be principal. Yes we have a small emergency fund and I agree we could add some to that.We also could live in the mobile home while the house is being built but we can't depend on that because our landlord wants to get rid of the mobile home and build his home office on the site.We were going to have to move this last year but the economy changed his mind and he said we could stay another year. So if it comes down to moving out while the house is being built, we are thinking about putting the tent up on the property and not having a rent payment. You have given me/us some more to think about. I'll let you know what we do next month because I'm sure he will change our minds several times before then. Thanks to everyone.

Cat

**NikoSan999** · 09-23-2009, 02:51 PM

Originally Posted by Sassyclass

This is our last 3 paycheck month as we had 3 paychecks in May. You people are awesome. I think I will have to talk to hubby again. I think we really need to buy the heater. We already have a kerosene heater but with my asthma and living in a mobile home, the fumes, and yes kerosene does put out fumes, and fire hazard are too much. I really want to see the credit card debt gone. We have very little interest left on the car. In fact the next payment should wipe it out and everything after that will be principal. Yes we have a small emergency fund and I agree we could add some to that.We also could live in the mobile home while the house is being built but we can't depend on that because our landlord wants to get rid of the mobile home and build his home office on the site.We were going to have to move this last year but the economy changed his mind and he said we could stay another year. So if it comes down to moving out while the house is being built, we are thinking about putting the tent up on the property and not having a rent payment. You have given me/us some more to think about. I'll let you know what we do next month because I'm sure he will change our minds several times before then. Thanks to everyone.

Cat

Cat, one more thing to think about as far as not having the trailer to live in during that time. If the house is going to have a basement, if you can stall the landlord just a little bit, at a point you could live in the basement. Better than a tent. We did that back in Ohio. Just a thought.

**itlw8** · 09-23-2009, 03:18 PM

If you are going to be building you need as much debt paid off as you can and as much saved as you can.

You will NOT live in a tent so don't even think of it you do not need a tent.

and this portable heater is a what ? how does it work?

If you are buliding your leisure is all going into that house for several years.

I say pay the bills

**nodmicks** · 09-23-2009, 03:25 PM

Originally Posted by itlw8

If you are going to be building you need as much debt paid off as you can and as much saved as you can.

You will NOT live in a tent so don't even think of it you do not need a tent.

and this portable heater is a what ? how does it work?

If you are buliding your leisure is all going into that house for several years.

I say pay the bills

I have a friend that built a house and they actually did live in their tent and shed on their land with a rented porta-potty for about 3-4 weeks. They eventually lived in just the basement for 18 months, them finished the house. Code said it could not be longer.

I never would have believed it if I hadn't seen it! Like Tiff said though they never expected their old trailer to sell that fast to a cash buyer and no way were they paying to put 7 people up in a hotel. It was great weather and her kids loved it!!!!!!

Now having said that I still would not buy a tent. If push came to shove I'd buy one when I needed it (if) or borrow (Tiff borrowed a big 3 room tent).

**brenda67** · 09-23-2009, 06:42 PM

Buy a generator and you will not be sorry..Use the rest of the $$$ for whatever you think is more inmportant..

**missmanny** · 09-23-2009, 09:35 PM

we have three pay days in December this year and I am really looking forward to that.

I am hopefull that we will save some of the money but it will be Christmas and Holidays so maybe not...

Sounds like you have two competing priorities, in my house the person who votes for paying down debt always wins over the other one.. we have had a few of these conversations and we have made a concious decision that if both parties are happy to buy something then that is what we will do but the other party gets a disenting vote and if their vote is to pay off debt with extra money instead then the debt wins every time.

That is just what works for us - in your situation sounds as if you have some valid reasons for wanting to spend instead of pay down debt, I'm sur ethat you and you husband will come to a good decision together