Another "is this the right thing to do?"

**Valerie in WA** · 05-26-2006, 12:25 PM

I think I'm going to need foot surgery later this year, probably mid-summer or begining of September. If I do, I will NOT have paid leave from work. I've already exhausted all but one or two days of my sick and vacation. I would need three months off (which is actually only 18 work days for me). So I'm trying to plan ahead NOW, in case this does indeed occur.

Here's what I'm thinking. My take-home pay (after taxes and medical) is about $1350/month. I currently pay $1440/month combined to the CC and van loans. The minimum on the CC is only $95. I'm paid up so far ahead on the van that I don't HAVE to make any payments until September. I'd like to pay the van loan ahead a little more, in case I don't have surgery until early Sept. That way when I'm off work I can take the $1440, less the $95 to CC, leaving $1345 and use that to 'replace' my lost income. The difference of $5 can be easily absorbed.

BUT, when I'm off work, I still have to pay for medical for Dh and the dd's. Not only that I have to pay for my own medical as well (I'll technically be on COBRA during my leave). I estimate that the medical will cost $750/month. It's not all due upfront. Once I've indicated that I want COBRA, I have 45 days to make the first payment. So I'm thinking that I should start saving the money for that now (rather than paying ahead on the van). I would do so by making only minimum payments on the CC and banking the remaining $1345/month in the EF. (Currently the EF is just at the minimum $1000 and I'd rather not dip into that.)

BUT, if I don't pay ahead on the van, I'll be short another $323/month during my leave.

What's a girl to do?

Also, if I DON'T end up having surgery (keep praying for a miracle), I would have that money saved and could either make a big lump payment to the CC or just leave it in the EF and continue to make large payments on the CC. The balance on the CC is only $4166, so I can get it paid off fairly quickly.

My original goal was to pay off the van and the CC by the end of the year. That may not happen, but I'm okay with that. I've already paid down $5659 this year, and minimum payments would only have been $2090. So I'm pretty happy.

**canadian gardener** · 05-26-2006, 03:16 PM

I don't know what Cobra is, but it seems to me that you have a couple of options.

Do it now, as you've indicated, and skate over some rough debt, and have it a bit worse for a while.

Do it later, after dealing with the CC and van, and have it a bit easier in the debt dept.

Is there a hurry to get it done? That is the main question I'd be asking.

What is the benefit and costs with having it done now, and then later.

One will pop out at you. The problem with being a nurse is, you are ON YOUR FEET!

So this is a work related expense, in order to keep working and stay healthy. On the other hand if you can keep it together a little longer, without causing permanent damage to you or your career, maybe that cost/risk benefit ratio is skewed to getting it done now.

**canadian gardener** · 05-26-2006, 03:27 PM

Valerie if your foot is bad, you need the surgery period. Debt like housework will always be around to deal with, but health is something that can't be regained easily when lost.

Your feet are literally your way out of debt. take care of them.

**Valerie in WA** · 05-26-2006, 04:42 PM

COBRA is continuing your employer-sponsored medical insurance (the exact same coverage) at your own expense.

The question of when on the surgery is up to the doctor. I'm all for now. I see him again in two weeks. I think he's going to want to wait a bit longer to see if the treatment I had on May 1st kicks in. Let's say I see him, as scheduled on June 8th, and he says okay, lets do surgery this month. That would be fine with me.

However if he says give it another month, and then I go back around July 8th and he says, okay surgery, but the next available date I have is August 1st. Well, that won't work for me. I've booked a condo on the Oregon coast for the last week of August. I refuse to give that up. (I need a pout and foot-stomping emoticon

)

It is possible that the May 1st treatment will yet kick in (but it's not looking good so far). Actually the right foot seems better, but the left (which has always been the 'bad' one) is just as bad as always. If I do need surgery, I either want it a while before the vacation or just after.

I think the bulk of my question, is: Should I save cash now (that I could be putting toward debt) in case I end up with three months of unpaid leave?

**ironmaiden** · 05-26-2006, 05:16 PM

Usually people use COBRA when they are fired, quit or layed off from a job. I haven't heard of it being used to cover a medical leave of absense. I take it you do not have short term disability through work?? You might as sometimes it is one of the automatic benefits that you don't pay extra for, can't hurt to ask.

My current feeling is to pay the minimums for the moment and see what happens. You can redecide what to do with any extra money once you are literally on your feet again.

And a couple of other suggestions. Before the surgery do alot of cooking ahead and freezing. Like now everytime you cook something, triple or quadruple it and freeze the rest. Like make 4 meatloaves instead of one. Cook a big turkey for a meal and freeze the leftover meat. Or the family will blow through money like water on take-out. Also, depending on what kind of grocery shopper DH is, you might want to stock up as much as possible ahead of time. Buying non-sale items that you will need is cheaper than coming home with an extra $50 of junk.

**Valerie in WA** · 05-26-2006, 07:20 PM

LOL! You are so right about DH at the grocery!

I will take your advice about cooking.

I only work parttime and do not have short-term disability (I checked). I also don't qualify for FMLA (Family Medical Leave Act), as you must work at least 1250 hours/year, which I do not.

I, too, had never before heard of using COBRA for a leave, but...well, you learn something new each day.

**YankeeMom** · 05-26-2006, 07:27 PM

Oops, never mind...I must have been posting while you posted that last entry Valerie. I posted about disability.

**Cele** · 05-26-2006, 07:28 PM

Hmm, I'm not sure COBRA can be used that way. Please make sure you can. It would be terrible if you lost your health insurance!

An idea: I'm assuming based on your post that you work part time? It seems there are nursing shortages just about everywhere in the US. Could you take a full-time job which would give you insurance coverage and short-term disability benefits? After a respectable amount of time, you could quit the job and go back to part-time status.

Just a thought.

ETA: Our posts must have crossed, so to speak. I'm glad you can use COBRA. I was on COBRA last year when I had surgery. Very expensive, but better than being without coverage.

**Jenna** · 05-26-2006, 10:58 PM

I vote hold on to your cash in a high yield savings account, and pay the minimums on your c/c & car note.

Hows the interest rate on the c/c? Can it be transferred to a lower rate? - just watch out for the fine print & transfer fees.

**PrairieRose** · 05-27-2006, 07:29 AM

I would probably save the cash to pay on debt later as long as that will leave you enough to pay for COBRA while you need it. This would sorta be like planning for the actual emergency in your EF.

**Lorelei** · 05-27-2006, 08:28 AM

I'm also going to encourage you to build up the cash fund rather than paying ahead on bills. If you need it, the money will be there, and if not you can make huge payments on those bills later. In this situation, a larger emergency fund is worth more than the interest you'll pay over the next few months by just making minimum payments.