Friday, March 14, 2008

Hello all!

It's been a good couple of weeks for me. First of all, the Leons card is paid off! YAY! One down a couple more to go.

Second, the mess with the insurance company has been straightened out after many phone calls and copies of bank statements. The insurance company has refunded the policy fees, and says payment is on the way for the NSF fees as well.

The money from the tax refund has been paid to my student loan, so the balance left to pay is $3,025.53. Now that the Leon's card is paid off, I will be moving an extra $100.00 a month over to a monthly payment on the student loan.

Now comes my next dilemma;
I am half-expecting two large payments in a few months. One should be around $1000 and the other is roughly $2000. I have around $3000 owing to the orthodontist and around $3000 owing to the student loan. How should I allocate these payments?

On one hand, paying off the orthodontist will free up a direct debit out of my account every month. That would give me more "wiggle room" each month if money gets tight. The student loan is not a set amount or a direct debit so I don't have to worry about bouncing a payment.

On the other hand, the student loan has interest on it, albeit a small amount. I know if I play by the rules, the student loan should be paid off first. However, I do like the security of not having a set payment in the month unlike the orthodontist.


I will have to ponder this one for a bit. Good night all!