Stuck with 11k HOA debt… paying it off now or monthly?

Debt Management
1

My HOA replaced all the balconies in our building, and each of us got an 11k bill. They’re offering us a choice to either pay it off fully now with a credit card (only available this month) or to go on a payment plan of $135 a month for the next 10 years, which will cost 16k with interest.

I could pay it off now, but I also have a 20k car loan I want to clear soon. I have 50k saved up, but if I paid both off, my savings would drop to 19k, which feels a bit too low for comfort. I’m not sure what to do here.

2

I just built a deck myself for $1k… and they’re charging you 11k for a balcony?

3

Why not pay off the HOA bill fully now and put some of what’s left toward the car loan?

4

Phoenix said:
Why not pay off the HOA bill fully now and put some of what’s left toward the car loan?

Haha, ‘cat payment’—that made me laugh. Yeah, that’s not a bad idea actually.

5

If you think you might sell in the next 10 years, don’t pay it off. You can pass the balance to the next owner. But otherwise, look at which interest rate is higher… your car loan or the HOA payment plan? Pay off the one with the higher rate first.

6

Just go with the $135 a month. The HOA interest rate is pretty decent, and over 10 years, inflation might make it feel like you’re paying less anyway.

7

Seriously, who agrees to stuff like this? I’d rather live somewhere else than let an HOA tell me I need to pay 11k for a balcony. What’s next, a 9k bill for a new door?

8

Morgan said:
Seriously, who agrees to stuff like this? I’d rather live somewhere else than let an HOA tell me I need to pay 11k for a balcony. What’s next, a 9k bill for a new door?

Everyone was upset about it, but apparently one of the balconies actually fell, so they rushed to replace all of them, even if yours was fine. And yeah, the city inspector didn’t help either.

9

@Whitney
I still don’t get how this is your problem. I’d just say I don’t need a balcony! 11k is insane.

10

Morgan said:
@Whitney
I still don’t get how this is your problem. I’d just say I don’t need a balcony! 11k is insane.

I wish we had an option. The meeting about this lasted three hours with everyone venting.

11

@Whitney
I’d rather live in a tent than deal with an HOA honestly.

12

Keegan said:
@Whitney
I’d rather live in a tent than deal with an HOA honestly.

Same! HOAs just take your money and do whatever they want.

13

Morgan said:
@Whitney
I still don’t get how this is your problem. I’d just say I don’t need a balcony! 11k is insane.

The problem is summed up in three letters: HOA.

14

Morgan said:
@Whitney
I still don’t get how this is your problem. I’d just say I don’t need a balcony! 11k is insane.

You do know what an HOA is, right?

15

Morgan said:
Seriously, who agrees to stuff like this? I’d rather live somewhere else than let an HOA tell me I need to pay 11k for a balcony. What’s next, a 9k bill for a new door?

This is classic HOA mismanagement. They put off repairs for so long that something bad happened, and now they’re scrambling without the money they should’ve had saved. Sadly, many HOAs are run this way, which is why your share of the fix is 11k now. And this might not be the last time they ask for a big assessment.

16

@River
Exactly, that’s what’s happening here.

17

Morgan said:
Seriously, who agrees to stuff like this? I’d rather live somewhere else than let an HOA tell me I need to pay 11k for a balcony. What’s next, a 9k bill for a new door?

That’s the ‘joy’ of living in an HOA property. You don’t get much of a choice.

18

Morgan said:
Seriously, who agrees to stuff like this? I’d rather live somewhere else than let an HOA tell me I need to pay 11k for a balcony. What’s next, a 9k bill for a new door?

I get that HOAs can be frustrating, but things do need maintenance eventually, right?

19

@Max
The point is they’re making OP pay way more than necessary.

20

Are you renting this place? If so, expecting renters to pay for these kinds of repairs seems unfair, unless the tenant caused the problem. If you own it, that’s another story.