I saw my score decline, and as you, I have a business to run which in some ways depends upon my business associates preconceived “credit worthiness” using the FICO score. I fought with my mortgage company to keep reporting a zero balance for instance, same thing for the last car I purchased on credit, but finally the fight to keep reporting zero balances just wasn’t worth it any more and I watched the score decline. I had some casket companies who all of the sudden started requiring a deposit, which they were going to keep for me and pay interest on the deposit at the end of 36 months – when I (the business) had been working with them for 40 years. I dropped them and went with different vendors. The same thing happened when it came time to renew a vehicle insurance policy which had been in force for 16 years at the time and at times during that tenure, had over 20 cars on it. At first I appealed their decision to, in my estimation, arbitrarily raise rates not on our policy history, but on a score which might suggest that we were a risk. I won the appeal, then decided that it would probably be something which would occur again so I dropped them and moved my business to another carrier. Lot of work, but it was the principle which wouldn’t allow me to stay.
I said all of that to say that I pay more for car insurance than I probably need to but I like the idea of a company which looks at the business/person regardless of a three digit score.
Strangely enough when the cars had problems the repairs were not covered. We had a drive train warranty, and when the drive train went bad, they claimed that particular section wasn’t covered. Had it for electronics repair—not covered. Was told that the motor was covered when we purchased extended warranty—nope they found a loop hole. These were not cheap warranties either. We never bought one again. Never will. Now that we are “Plan” we just budget for repairs.
We come out way ahead, we aren’t out any more money than the actual repair—which most of the time my guys can do. We no longer finance cars/trucks, but if you do then you are paying interest on that warranty too. Far better to put the same amount of premium payment in a savings account and earn interest on it.
Now that all being said we do put them on computerized things like our wireless printer. Everyone that has been on here for a while knows how I’ve already had my printer completely replaced twice. I do pay the $15 for the extended warranty in cash because the printers tend to wear out around here about every 18 months. We do not purchase cheap printers either. Photo quality, all in one, etc. So for that $15 we get a new, better quality printer about every 18 months, which we pay another $15 for another extended warranty and repeat.
I make the decision on extended warranties for the appliances and such based on how much the item costs to replace vs how much the extended warranty is AND how likely we feel the item is to die before we have gotten x amount of use out of it. Doing this we generally only get them on the computer equipment. Most everything else, washer, dryer etc dh can repair for the cost of a part.
As I said we usually say “no” excep the washer and microwave we bought a couple of years ago when we bought our current home. The microwave is so heavy and has so much in the way of electronics, dh insisted.
The washer is an “HE” washer and also very computerized. The maintenance agreement/extended warranty had more than paid for itself. Sears has been out about 4 times fixing the washer. They could have given us a new washser for what they have spent fixing it. No joke, very literal. However, as dh tells me … the maintenance division is very separate from the sales department to the point that it’s like an invisible impenetrable wall. Apparently one does not know what is going on with the other. For our washer at least 1/2 the repairs have been after the manufacturer’s warranty ran out.
Dh said back in teh 80’s when he managed a Sears catalog store a lady bought a water distiller. It was about $100 to purchase at that time. Sears spent about $1000 … yes, $1000 fixing this thing. It is amazing Sears is still in business! LOL
However, we have a working washer and that is all I care about.
I would say that 90% of the time extended warranties are not needed and are a waste of money …. except for that once in a blue moon lemon appliance or car. Figuring out if the one you’re buying is the tricky part. It is not so easy. One might say to read reviews. However, I don’t put a lot of stock in reviews if they are very mixed. I’d be more inclined to look at them if they are on one extreme or another, like if no one was pleased with a particulur appliance model or car. Or if almost everyone was pleased with said appliance or car.
His girlfriend at the time said it was the most romantic evenings she’d ever had. He covered all the furniture in his dorm room with white sheets to give a continuous effect in the room. Then he put white lit candles everywhere he safely could. No other light in the room. He did a mix cd of the music they both loved and had it playing softly on a loop in the background.
For their meal he made a deluxe picnic meal, complete with a red and white table cloth, cloth napkins and nice plates. They had a rich elegant dessert with their meal. Then later went walking in the snow that was outside—of course you can’t walk in the snow, but you could walk in the moonlight.
Another time he had asked her ahead of time what her favorite dates had been in the past, then he duplicated as many of the events as possible in one night. Ask Pete his favorite memories of your dating days and then go from that in conjunction with your favorites.
We were planning on glamping but had to cancel it due to some health issues. Anyone got any frugal stay home ideas? We will 24 hrs to ourselves ! No bubble baths due to medical. I was thinking take out by candlelite, star gazing and that is all I got.
The first was Lowe’s in December, but it was originally around $5,000. I’m getting into the big guys now, but if all goes according to plan and we just follow the snowball the last cc will be gone by March 2015 (it was originally over $42,000—currently at !2,500). The two mortgages will be gone by May 2016. That is just paying the snowball minimums and you KNOW I’m not going to piddle along that long. I’m thinking all gone by Dec 2014 at the latest. Dh thinks I’m dreaming, but then he thought it would take us the full time to pay off the two cc we have already paid off too.
1. They are so horrible to deal with and now they are with Capital One—who I don’t even want to discuss.
2. They’ve already changed our contract TWICE( once raising the minimum we must pay to keep the “deal” and once to raise us from zero interest to the 9.9% interest) with no warning, I have been expecting it again since Capital One took over—They are some nasty folks I found out when handling dmil’s accounts. I want to kill that account before they discover what I’m doing and jump the interest rate! With national interest rates looking to rise soon the faster I get this card paid off the better off we will be.
3. 9.9% interest—we’ll save well over that $200 difference by paying it off early (around $400-$500 will be saved in fact).
4. I don’t want to have to re-arrange my snowball chart which is showing the Chase balance higher than it actually is for some reason by $428 –that will look sweet as an ‘extra’ payment when it is Chase’s turn.
5. BB only gets $110 a month before the snowball (with the snowball it will now get $425), Chase gets $214 so it is going down much faster than BB with the basic payment anyway.
6. Did I mention I HATE Best Buy? The only way I go in there is to do a mystery shop, or to collect on a warranty any more. They don’t even get my cash purchases!
So we didn’t rehome this snake, instead we hacked it to death with our gazelle hooves as we ran from the cheetahs in the pack behind the snake. Hopefully in the next few months I’ll have more to report that the even bigger snake (previously maxed out at around $17,000) has died a quick death.
The snake was HUGE. Most snakes we re-home because they have a purpose on this earth. But this one had no purpose whatsoever that we could see. In fact it could be deadly not only to all our dreams but to our actual lives if we weren’t careful. It slithered through the pastures of the peaceful times of our lives and the weeds of our despair. It seems like it had always been there. Just out of the reach of the weapon that would take its life. It didn’t die easily, we had to keep hacking and hacking at in. First tentatively with little blows to it, but it seemed as if it was part hydra, it kept coming back for more and growing ever so slightly every time we looked at it. But finally we struck it with one final triple whammy blow and it died!
We killed our little B.O.A. today!!! Over a year ahead of schedule per the snowball, and three years ahead of our contract with them. Our first $10,000+ original balance charge card GONE! No longer would it grow back a dollar here a dollar there in interest. No longer could it choke our financial future. It is dead and it will remain that way forever. We achieved the seemingly impossible. We killed the hydra that was Bank of America—at least the little one. The big one still lives, but even its power is fading on a monthly basis.
I realized on the 18 of May that with our budgeted payments through June we’d be within $179 of having BOA paid off by October 30, although the snowball chart was showing only two payments for that time frame and said it would be mid to late September, because we pay some out of every pay check we have come in on the pet bill there would be four payments scheduled. Couldn’t take it, had to get rid of it BEFORE October 30 and we did it! So what if I shorted our groceries a bit this month, the critters are eating fine and we have our food storage. The three of us could stand to lose a little weight (heck a lot of weight) This was an interest bearing (6.9%) account so it felt REALLY good to get rid of it so much earlier than scheduled.
Next on the hit list– the Grinch that is Best Buy!!!! If all goes according the snowball plan it will be paid off in November of 2018, but then I’ve set a goal for THIS Christmas. It’s a pretty big plan considering we owe so much on it and my monthly minimum payment including the snowball is now only $425, but that is what I am going to try to do. Ho, ho, ho, Merry Christmas is my plan. The BB, our other BOA, and our little Chase are all real close in balance due, hovering between $4,900 and $4,700 each (down from well over $10,000 each) and since BB is a company that were real b….errrr witches to us when we were unemployed plus they are charging 9.9% interest they are definitely going NEXT. Even though technically the Little Chase, who is charging us ZERO interest, is about $200 lower in balance.
Some of the sinking funds envelopes we have are for:
Roof–this is actually started WAY in advance of needing one. We put a roof on a year ago and I figured what we’d have to save if the roof lasts 20 years. Divided that by 20 years then by 12. I am saving $50/month. Realistically I believe our roof won’t last 20 years simply due to living in hurricane territory. If it’s ripped by a hurricane, we’ll have a deductible, then the rest covered by insurance. I figure anything we save will go torwards the deductible if it has to be replaced sooner than 20 years.
Car–tags, drivers licenses, maintenance, etc.
Car Insurance–We make a single payment every 6 months and this saves us a $5 monthly fee that is charged when paying monthly. Recently I figured out that our next insurance bill will cost us more and have had to amp up how much I am saving, kinda putting a squeeze on the budget. 🙁
Blow Money–dh and I each get this in cash. He gets less than me because his clothes basically come from our store, which is taken out of end of year profit. It covers clothes, personal entertainment, meals that are taken personally, not part of the family eating out, hobbies, etc.
Hair cuts/color–a haircut for each of us and a color for me. I have been getting mine at the beauty school and it saves a ton of money. All students are supervised by instructors and their work is checked before the client gets up from the chair.
Pedicure–I have issues with my toe nails that would require going to a podiatrist, or getting a professional pedi. I choose not to sit in a doctor’s office. Plus I get my nail painted! 🙂 The nail technician I go to has been doing this about 25 years, by appointment only. Not one of the walk-in places where no one speaks English!
Restaurants–we budget for eating out as a family. It’s not quite a much money as I’d like but close enough.
We have a lot more sinking funds but I think you get the idea. I am very tactile … I love to touch and feel things … it is part of my scrapbooking, coaster business, etc. so it is natural it would carry over to handling money. It makes it much more real to me to see the cash dwindling or growing in any given envelope.
I’ll quit for now but I hope that helps.
But I’ll tell you what my “car guy” husband thinks and it’s probably not necessarily what Martin would say (he sold cars for a number of years, honestly, and now works for a car manufacturer in customer care. He is upfront about what car salesmen and dealers do and do not make money on (ps…yes, there are often “shady” car salesmen, but more often than not, the dealership owner and managers are the ones making the big bucks or pushing anything dishonest…your car salesman is making diddly squat and just trying to squeak by — it’s why my husband left that aspect the business, even though he loves it)
Ok! He says:
I believe in them, so long as the plan purchased is backed by the manufacturer, and that it’s purchased at the time of sale. Otherwise, the price goes up as it’s now a used vehicle. I would especially recommend one on a used car with higher mileage. It will cost some cash, but may be worth it in the long run. Make sure you’re purchasing the level of coverage you want. Not all plans cover the same components, and some have drastic levels of coverage (not much to everything). A customer can shop around for pricing, which can be used to negotiate. Most dealers mark up the plans between 75 and 100-percent from cost + offer payday loans (easy&fast cash). It’s a huge moneymaker for most dealerships.
What I don’t suggest are the following:
-tire & wheel care
-paint and fabric protection
-LoJack (insure your vehicle)