Question about which bill to pay next

[weedaisy]

So, I am almost finished paying off my one credit card and will be able to put that $50 into another bill. I am not for sure which bill I should put it towards. (I only have the $50 to put towards any outstanding bills). I am currently up to date on all my basic bills (utilities, mortgage, etc.).

I have medical bills that have been in collection for years.
Hubby has an AT&T bill that is in collection.
I have student loans, but am currently in school so don't have to pay them right now (I am currently working part time and hubby is laid off so I am praying that I get a decent ($39k) full time job after I graduate.
We also have a motorcycle loan (hubby bought the bike 3 years ago before economic collapse). I think we might be one month behind on this loan (it's hubby's loan and I'm not for sure he got caught up on it).
Oh and we have a mortgage as well - but the mortgage payment is $473/month (which is why we can live on such a small budget).

Long story - Before hubby I was married to a loser who spent all our money and so I was behind on all my bills, then I was a single mom with no job, then I got married to hubby who got laid off 1 year after we were married (*sigh*). For a while we slipped a little, because it was all overwhelming and hubby wasn't used to being poor. I am actually proud that I am now paying my current bills on time - that is a big coup.

My initial thought is to try and pay off the motorcycle loan (if all goes well). Unfortunately, part of "critical mass plan" (if hubby should run out of unemployment before he finds a job) means that we let the bike get repoed (I can afford almost everything on my own, except the bike).

Good news is that I can be fairly thrifty when left to my own devices and hubby is on the frugal bandwagon so we're pretty clever with most of our money.

Oh - I also have $900 in savings - but am keeping it there for the dog's shots and also in case the car breaks down (because I don't really have the credit to get the car fixed - my credit card limit is $500 [I didn't want a bigger limit when I got the card and am pretty sure I couldn't get a bigger limit now if I wanted to).

I hope this isn't TMI - just wanted some advice to mull over.

[Russ]

Get current on overdue bills.
on edit.. I would say the AT&T bill. If your Med bills have been there for years another month or two won't hurt them.

[kita]

Yes, get current. But don't let the motorcycle get repoed...sell it if you need to but be in control. What is the transportation situation? Is it used as a second car? It may be a cheap second car.
Be in control. How long has your husband been out of work? How long does he have benefits for? How much does he owe on the motorcycle? What is the insurance for it? How much is it worth? If you have equity and it is a forgotten toy (not the useful second form of transportation) then consider selling it to pay off that loan.
I have heard (not being married and all) that sometimes you have to compromise with spouses. If there is a lot of equity maybe you could sell the bike and use the cash to buy a less expensive bike and rid yourself of one loan.

[weedaisy]

Wow! Thanks for the responses.

We don't have insurance for the bike, it isn't even registered in FL or up to date on the tags. We have two years to go on payments.

I have suggested selling it - but am not for sure we can get what we owe on it as it was damaged on the transport down to Florida.

Unfortunately, hubby is attached to the bike and resists the idea of selling it. We've been behind on it before and almost had it repoed before, but always managed to keep up on it.

I think hubby's benefits run out in June - but they keep extending it so who knows.

It's really a delicate process. Hubby is a good man, we're just not on the same page in regards to the bike.

I'm really hating this bike - I see it as a huge money pit type of object, but I can't force hubby to sell it - it's in his name - and I don't think it's worth our marriage.

I might bring up selling the bike again this week - I might even tell him I hate the bike. I mean, when we get on our feet we can always get a new bike (for us) and pay cash for it (I'm done with financing like I'm done with credit cards LOL). Hubby financed the bike to try and help his credit score (he had a viable job that seemed secure at the time) - yeah, big mistake.

Oh - we have 1 car and it's paid off.

Personally, I feel like our credit is so terrible right now that it won't matter much LOL.

[Kitten20]

Get current on the bike. Try to get hubby to agree to sell it. Even if you are a little upside down, it may be worth it. If not, I would probably pay that off first, since I assume it's costing you interest (where the debts in collection aren't). Then smallest to largest in collections. Imo!

[McD]

Is he riding the bike without any insurance and no tags? If so, that needs to be rectified or it needs to be parked.

Also, without insurance on the bike, you are most likely in violations of the loan. With that, the lienholder on the bank could call in the note and repossess the bike--even if you are current on the payments.

[weedaisy]

No, he is not riding the bike. It needs to be repaired anyhow - but he still wouldn't ride it without tags or insurance.

I never thought about not having insurance is a violation of the loan. I'll have to ask him about it. I think with all of the troubles that came our way (daughters needing multiple surgeries during this time period and other stuff) we just sort of blipped on it.

Thanks for bringing it up.

[ncarr]

if he can't ride it why the attachment? It seems like a lot of money to be throwing away each month on something that isn't being used.

[Wendy99]

I think your doing great - your head seems to be in the right place frugal wise As for the bike I totally agree with you - it's not worth ruining your marriage over & if your next request going out to him to sell the bike works - all the better!! I really have no advice on what to pay next, but just wanted to let you know that I think in your the perfect mindset for this!

[a.nonymous]

The bike is a want, not a need.

Your hubby should grow up and act like a man who puts his family's needs above his wants.

Sounds harsh, but hey, you have to face some facts at times.

Otherwise, I think you're doing great! Keep up the work.

Don't rely on credit to take care of emergencies. Try to carve out a slice of your income (can be tough, we know) for expected maintanance, and keep your starting emergency fund around those $1000.

E.g.: We're putting 100 bucks away each month for car maintenance in a different account. It takes a lot of uncertainty out of our planning to know we can cover basic repairs out of that account.

[Preston]

Spreadsheet this out as far as what you owe and show what a money pit the bike it -- IT DOES NOT SERVE A PRACTICAL PURPOSE BEING DAMAGED AND PARKED. It is a DEAD WEIGHT in your finances.

[MrsOptimistic]

I completely agree. Sell that bike! It is dragging you down and keeping you from being able to afford a nicer (working!) motorcycle in the future.

After that, I think you should go after that AT&T bill then medical.

Keep it up! I think you are doing great!

[frugalwarrior2]

Sorry bikes gotta go.Run a blue book on a damged bike. Dump it and give DH a big boy pill.
Get current w/ AT&T. Get that BEF up to $1000.
Take the dog to Petco for a shots clinic if you have 1 nearby. Much cheaper.
Start learning to coupon (utube) and start a food stockpile.

Can't live on maybe. He has no job/he has no toys. Batton down the hatches. This economy is like no other. Get w/ the fact he may not find a job for a long while.

[itlw8]

this is April you could only get one extra payment of $50 on that bike and still might lose it...

If he might lose his unemployment in June I woule stick that $50 and everything you can into savings you are going to need it.

I assume when the unemployment runs out he will be open to everything even McDonaldss except by june the kids will be running the stores.

[mek42]

Maybe make a deal that if he sells the bike now, the first big toy purchase after out of debt is a replacement bike?