Seeking Opinions

**bumplett** · 07-27-2011, 03:46 PM

Seeking opinions from my fellow villagers....

we are still on baby step #3, trying to save a hefty emergency fund of 6+ months expenses. Our goal is $15,000 - $20,000

We currently have $5600 in savings.

big J had to have braces (he was born with a cleft, so he really did *need* braces, he sees the craniofacial team @ a children's hospital)

cost of braces (after insurance covered their tiny portion) $4832.50

Hospital will take payments - here's their plan:

Total: $5832.50
- Insurance -$1000
= Patient portion $4832.50
- Deposit $200
= Total on payment plan: $4632.50

$128.69 month for 36 months, no interest, no late fees.

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so, do I take $$ out of savings to pay for the braces - leaving us with $1064.50 (not enough if we were to have an emergency IMO)

Or, do I make payments since there are no fees or any interest??

Or, do I make payments with a bit extra, say $200 month, and pay if off earlier??

I've already attempted to get insurance to cover more since it's a medical issue that requires braces, but naaaa, they don't want to cover any more.

What say you?

**Libby** · 07-27-2011, 03:48 PM

Id go with the payments since and swing extra when you can. This is a necessary evil and as much as I hate making monthly payments - this won't leave you high and dry should Murphy come knocking.

FYI @ $200/month you'll be paid off in just under 2 years

**lottaLove** · 07-27-2011, 04:04 PM

I would also make the monthly payments. It's terrible that insurance covers so little toward the overall cost.

**bumplett** · 07-27-2011, 04:08 PM

At least they cover something.

Something's always better than nothing....

**lottaLove** · 07-27-2011, 04:10 PM

Originally Posted by bumplett

At least they cover something.

Something's always better than nothing....

Ain't that the truth.

**pollypurebred39** · 07-27-2011, 04:11 PM

As much as I would hate having monthly payments, I think Libby's right. Having that cushion of cash in the event murphy comes knocking seems most sensible to me as well.

**Birdie** · 07-27-2011, 04:32 PM

I would pay monthly unless they will reduce the balance if you pay cash all at once. My orthodontist gave a 5% discount for early payoff. It can't hurt to ask if they will do that.

**bumplett** · 07-27-2011, 04:42 PM

Originally Posted by Birdie

I would pay monthly unless they will reduce the balance if you pay cash all at once. My orthodontist gave a 5% discount for early payoff. It can't hurt to ask if they will do that.

I did ask. Unfortunatly, the answer was no due to insurance covering $1000.

If insurance had covered nothing, they could have offered a reduction.... so in the mind set of the billing dept, the reduction WAS the $1000.

but that's alright - I asked. that's all you can do is ask.

so the majority opinion here is to make payments, extra when I can, and leave savings alone....

**piney** · 07-27-2011, 05:07 PM

Just my two

worth but that what i would do.

**OOwl** · 07-27-2011, 05:27 PM

Sounds like you're doing the right thing. I had to have my daughter in braces TWICE (she didn't wear her retainer properly and the teeth crooked again, so really ensure your son does), so you have my compassion. It's a real budget killer, for sure. The pretty, straight teeth are such a gift, though, so I'm sure your son will appreciate your gift someday. Thank you for doing that for him. Not all parents can do that for thier kids, and some can afford and don't.

**bumplett** · 07-27-2011, 05:31 PM

I'm not so sure he would share your feelings at this point. I didn't realize how much they would hurt.

**mndtrp** · 07-27-2011, 08:16 PM

I don't mind making payments on something, as long as I have the cash available should I need to pay it off quickly. I'll put items on my Home Depot card, simply for the 10% discount plus 12 months no interest. I have the cash available to cover the cost, but like to spread it out in order to keep the cash on hand.

If I was in your shoes, I would continue to put money in savings, making the minimum payments. If something should come up, and you need the cash flow more than you need the money in savings, you could pay it off. In the meantime, you will be making your savings account larger.

**Imarachne** · 07-27-2011, 08:19 PM

You will still be saving even if it takes longer.

**jas** · 07-27-2011, 08:37 PM

I would like the other have suggested make the payment since it will not cost you interest to do it and keep the cash on hand for your EF. You can always change your mind later on.

**bumplett** · 07-27-2011, 08:38 PM

I just hate owing the money now that we're on step 3, it feels like taking a step backwards.....

I really do appreciate that the hosp will allow payments with no late fees or interest....

so would you treat it as a debt to snowball, and put baby step 3 on hold til it's paid off, or just pay it off with payments and try to save any extra??