Saturday, November 13, 2010

An Admission

As much as I hate to admit this, Shane and I have once again taken on a small amount of debt. Only $508, but still, it's debt, and it was a hard decision to make after having just paid off our van and reached "debt-free-except-for-mortgage status".

The $508 was for four new tires for Shane's truck. Snowy and icy weather is just around the corner, which is why the tires were needed NOW. Lay-off season is also right around the corner, which is why we were a bit afraid to put out the cash in one lump sum.  We depleted our savings/emergency fund to pay off the van and haven't had time to rebuild a balance, which is why we didn't just have the cash available to buy the tires. Actually, we might have been able to scrape that amount together (just barely), but we weren't comfortable doing so when we don't know from one week to the next what Shane's work status will be. 

This isn't the end of the world. It's $508 on our Sam's Club Card, financed interest-free for 12 months. That's $43 a month, but we'll be paying at least double that amount each month for as long as Shane is working, and will send in that exact amount each month if he gets laid off. It won't take us the full year to pay for the tires, and we won't pay any interest on them.

Like I said, this isn't the end of the world, and it is a very small amount to owe;  it's just the idea of it that bothers me.  I wish we'd been more prepared for this purchase, but we weren't.  I wish Shane had given me a heads up earlier that tires were going to be needed, but he didn't.  So now, it's become, if not an emergency, then definitely an urgency.

But as "they" say, it is what it is.  I don't like it, and I even thought about not posting about it, but it's real life, and that's what this blog is all about.  Meanwhile, I'm hoping for a milder winter than last year, and that the lead Shane has on additional work for the winter pans out.  Also, I feel better knowing his truck is safer now.


A.Marie said...

I know it is debt, but it sounds like you have a good plan in place to pay it off! And, the money spent on tires is a small price to pay for safety and peace of mind! :)

Annie Jones said...

You're right, A.Marie, and I also think you identified a sore spot for me. I love having safe and reliable vehicles, but I hate spending the money required to keep them safe and reliable.

slugmama said...

Everyone hates spending on vehicles to maintain them!lol
It's only $500 and it's a need not a want, so I wouldn't bat an eye about it.
If Shane can lay floors, he's welcome to come here for winter work since we need a floor in the living/dining room and my Hubs is the 'anti-handy' person. ;-)

Leanne said...

Robert's one for doing that as well, the whole "by the way we need ..." thing:) I know it's debt and probably feels a lot worse because you were just free and clear but it's a necessity, there's be nothing worse than not being able to get the truck out of the drive or up a hill and missing a day's wage because of it, or God forbid if anything worse were to happen. Plus as you say, it'll be paid within the year and you won't incur any interest. Try and think of it as you didn't need tires this year and you're just saving to buy them next year:)

Frances said...

I don't think you need to feel bad at all. Your plan will avoid paying interest on it and I think that is the worst part of taking debt on. You have to take care of your cars and it is best to have an emergency fund. I would not have depleted it eiter.