Surprise in the mail! What would you do?

[rsschneck]

Need advice. Here is the scenerio: DH thought he had changed the quick sell of our stock to "NO SALE". Well, low and behold he must not have done something correct because we got a check in the mail for around $13,000. Very much a surprise! Too late now to get too upset that we did not want to sell. Anyway, should we use the money to pay off our DVC loan which is a home equity loan payment. Should we add on points at HHI through a resale which we have already talked about doing. What would you do? Add-on points and pay cash for those and keep current DVC loan payment as is. OR pay off DVC loan and not add-on any points. I know tough decision

 

[Mojomanny]

Hard to give you a complete answer with the limited information on your financial picture. Are college planning and retirement funds fully funded? Is your insurance portfolio complete?

Putting all that aside for a moment, I would point out that the home equity line is a tax deductible interest meaning the true interest rate is anywhere between 20 to 33% less than what you are paying.

If you think DVC is a good program (which I do) and feel costs will climb at a rate exceeding 4% (which I do) and if you have use for more points (which we all do, I am sure), then I would go for the add-on.

(Did I happen to mention I am a financial planner?)

Be well

 

[BriarRose59]

HHI in a heartbeat!!

 

[rsschneck]

My financial planner would love you for thinking about all the other things.

College funding for 1 child is being funded every month. Retirement plans are being funded to the max every month. All other financial aspects are being taken care of. No credit card debit or auto loans. The ONLY loans are the mortgage (14 years left) and the home equity for our 300 point DVC resale we purchased in November.

Love Disney. Love our DVC so far. We are West coasters though and wonder if the flying back and forth all the time might get a little tiring.

Thanks for your 2 cents! Keep the poll going! I will let everyone know what we decide later.

 

[JimC]

Given the options you presented, pay off the debt.

 

[lurontravel]

Pay it off! I'm in a very similar financial situation, but I cannot STAND having a loan on my house (other then my mortgage, which'll be pd off in less then 7 yrs at 6%). My vote is to pay it off, and as soon as you can afford it with cash, buy more points!
Just my opinion....

 

[disneychick05]

I always believe that you should work towards paying off your debt before anything else. You'll feel great knowing that your DVC is paid off in full!

 

[BriarRose59]

Okay, now I feel I have to justify my suggestion to buy at HHI. If you pay off the loan now you have the satisfaction of knowing you had one more debt paid off, BUT how long will it be before you could buy points at HHI? You already have your loan in place and the payment in your budget. Since you financed the first note, I would assume you would finance points at HHI at a later time. Taking that into consideration, why go through the hassle of filling out another loan app somewhere down the road? I would use the windfall to pay cash for the MINIMUM amount of points you feel like you need at HHI. Take whatever is left (if any) and apply it to the principal balance of your current DVC loan. That way you get the points for HHI free and clear now and you have lowered the principal balance on your DVC note. (I am assuming there is no penalty for early payoff.)

Good luck on making a tough decision!

 

[chris1gill]

I'd pay the loan off & start saving for the add on!!

 

[crisi]

Pay off the debt.

If you are wondering already if you are going to get tired flying back and forth, wait a few years before adding on to make sure that is what you want to do. There is nothing that says you can't pay more towards your child's college now and then not have to worry about that savings in another few years. Or pay off your mortgage on your home and free up all that cash every month for travel or early retirement.

 

[WDWguruDH]

Since you didn't want to sell the stock, the option that I would most likely go with is buying it back...with that option missing, I would go with the HHI purchase. Reason - I agree with rtwhite. If you are serious about the HHI purchase, you, like most people, probably won't wait until you save for it, thus you will just incurr another loan and all that hassle.

 

[Bevv]

don't forget if you made a profit on the stock sale it will be taxable.