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Volvo S80 Timing Belt

My Volvo dealer recommends I replace the timing belt for something like $800 as I recall. Mileage is now 115,000. I am short on money so I need to know how critical this is. I can't afford a new car or new engine so I may have to borrow money to get this done.

If it's crucial, what other parts should I replace, pulley, tensioner, water pump?
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