If I’ve learned anything in adulthood, it’s that life won’t go as planned. For a control freak like me, this can be devastating news. Things are going to get worse, and sometimes you just have to pause your debt snowball And caring for life.
To stop your temporarily Debt snowballYou will continue to make the minimum payments on all of your debts. Instead of investing all your extra money in debt, you’ll put all your extra money in a savings account. But let’s be completely honest, there are good reasons to stop the spiraling snowball of your debt and just us reasons Tells Our selves are valid. So let’s break down the real reasons to pause your debt snowball and the reasons why you shouldn’t pause your debt snowball.
Reasons to pause your debt snowball
If you become pregnant, whether it was planned or a nice little surprise, it may be time to pause your snowball and focus on increasing your savings. Most gynecologists these days set up a payment plan so that you pay for their services before the baby is born. In fact, you may even have to pay for your doctor’s portion of the delivery before you reach your third trimester!
Regardless, hospital bills will come, and they may cost a lot depending on your insurance. You don’t know how the birth process will go, so if you’re pregnant, you’ll want to have a good cushion of savings so you can pay off all the baby-related bills as quickly as possible. Hopefully your work will cover the costs of maternity leave, but that is not the case with our family. My pay has been cut and we have extra savings to help us get by. As always, A Budget is key To help you stay on track and not fall into more debt.
2. Loss of job
If your family has experienced a job loss, it’s time to stop the debt snowball until you or a loved one gets another job. Continue making minimum payments on all your debts, but put every extra penny into savings. Since you’re not sure when another job will become available, it’s best to be prepared in case it takes longer than expected.
If your family can survive on one income and continue to take on more debt that’s fine, but be very careful. Once you secure another job and your first paycheck hits the bank, invest any of that extra money saved into debt! Just be sure to keep a balance in your savings account for your emergency fund. Read more about the ins and outs of an emergency fund here.
3. Sudden movement
Am I the only one who has a fear of sudden movement? I mean, it’s unlikely that teachers would suddenly have to move, but I’m still pretty terrified by the idea! Maybe because I know that a long-distance move can be very expensive (and very stressful, too). So, if you have a surprise move, put everything on hold and stock up on as much money as you can. These movers must be paid, invoices will appear, and there can be many additional expenses.
4. Death in the family
If there has been a death in your immediate family (especially a spouse), give yourself time to grieve and figure out how to cope without your loved one around. Give yourself grace, pay what you need, and take care of yourself. You can resume your debt snowball when you are ready and dealing with your grief and emotions.
5. Health emergency
If someone in your family is experiencing a major medical emergency, you may want to consider pausing your snowball. You’ll need time to focus on how to pay your medical bills. Hospitals are usually very flexible and usually allow you to pay off your bill over time without any additional interest.
6. Major auto repairs
In my dream world, cars would never break or need repair. Of course, my dream world also includes zero-calorie ice cream and a barista who makes me coffee every day. Did I mention I won’t have to pay a barista? It goes without saying that an auto mechanic will always have a job because vehicles will continue to break down. Sometimes, repairs involve a hefty price tag that may be more than you have in your emergency or sinking fund.
We once had to rebuild my husband’s transmission in his car. It forced us to pause our snowball, empty our savings account, and make the decision to put more money in his car. Family and friends asked us to sell the car and just buy a new one. Did I mention this happened just 5 months before we were scheduled to be debt free? Um, no thank you. We said no to the shiny new car and stuck with the one we had.
Reasons why you shouldn’t pause your debt snowball
1. Big vacations
Taking vacations while paying off your debt can be very controversial. People in the debt-free community have strong opinions about this. You’ve fallen into the “don’t take big vacations” camp while working to pay off debt. Ultimately you have to ask yourself if you want that big journey for more than just being debt free because that is essentially what you are choosing. If you choose to spend $4,000 on a week-long vacation, you delay your debt-free goal by an additional $4,000. For me, it’s not worth it! Instead, consider taking time off to visit family that way your costs stay low and don’t delay your journey to financial peace!
2. New furniture
New furniture is not an emergency and should not force you to stop accumulating debt. It’s definitely a Wants And not a Need. Even if your sofa is uncomfortable, your kids have drawn all over it, and you want a new sofa so bad. You don’t have to pause your debt snowball to buy new furniture. If you choose to buy new furniture, you are simply pushing your debt relief date back! Ask yourself if this new sofa is worth it.
3. Home upgrades are expensive
When you’re working to get out of debt, you should postpone expensive home upgrades. If you want to replace those kitchen cabinets, consider making something less expensive so you’re no longer paying off any loans. Any major home upgrades will likely put you in more debt!
4. Large purchases you don’t need
Guys, being an adult is hard sometimes. Especially when you have to be an adult in a world where everyone tells you that you deserve everything you want. Because we don’t deserve everything we ever wanted. It’s completely unrealistic. So, when you’re thinking about making a big purchase, ask yourself whether this is something for you or not Wants Or something from you Need. In most cases, this is probably something you want and are trying to justify your need for.
Yes life will happen and yes, you may have to pause your debt snowball. It’s important to know when It’s time to hang up your snowball and when you should keep going!