Confessions of a Laid-off Lawyer

Just Your Average Joe Blogging Away His Debt—In One Year or Less

Seventh Day of Accounting

with 5 comments

Total Black: $585.56

Here’s the Breakdown:

Primary Checking: $0.00
Secondary Checking: $500.00
Savings: $0.00
PayPal Account (Personal): $1.05
PayPal Account (Blog): $3.58
Amazon Payments Account: $0.005
Mutual Funds Account: $80.93

FICO Score 487

Total Red: $228,999.10

Here’s the breakdown:

Credit Card Debt

MasterCard: $5,549.67
Visa: $8,128.78
Visa: $5,949.67
American Express: $417.64
Raymour & Flanagan Credit Line: $6,178.12
Saks Fifth Avenue Credit Card: $272.19

Student Loan Debt

Federal Stafford Loans: $96,810.17
Private Student Loans: $33,317.19

Back Taxes

IRS (2007): $1,285.85
IRS (2008): $28,116.66
NY State (2008): $0.00

Other Loans

My mother: $42,973.16

Seventh day of accounting, but only the sixth month in.

Total black has already been allocated for rent; it’s just waiting to be withdrawn.  It also includes a $4.00 donation I received the other day.  Thank you, DW! I won’t really be buying a beer with that money.  It’ll stay put in that account (I still have to “reimburse” two $50 donations) until I’ve received enough donations to pay off one debt, or until this project has run it’s course.

Total red is down overall from it’s highest point, but not by much.  One bit of good news, however, is that one credit card is nearly eliminated.  I started off with the American Express card at $2,367.40.  It’s now only at $417.64, nearly all of which represents charges and other expenses incurred on my recent trip to Orlando.  I’m ok with that.  Prior to the trip, the balance was at zero.  And a portion of one paycheck will bring that back down.

Something I realized earlier today:  I need to start sending money to my mother—and accounting for it.  I sent $50 to a credit card of hers that I have linked with my online billpay system.  I had to borrow her card a few years back and was making payments directly to it.  Recently I sent a “test” payment of $50 to that card to verify it’s linked properly still.  I didn’t deduct that $50 from the total amount owed her.  I’m sure interest on the line of credit on her house and on the credit card itself long since vanquished any drop of that money I sent, so I’m ok with that.  But the larger point remains: this is partly how I got into this mess in the first place when I worked at the firm because I had weekly direct deposit set up to pay her from my check.  And I never kept track of it and ended up overpaying her for loans and such by nearly $5,000.  That’s money that should have gone elsewhere.  In retrospect, I doubt that I would have sent it anywhere.  I wasn’t thinking then as I am now.  But I must treat that debt the same as all others: both in paying on it and in counting the payments made on it.  Besides all that, send even one dollar to my mom means that’s one dollar less owed.  It won’t get vanquished by interest and such as she’s not charging me.  At least not yet.

I decided that the next debt I’m targeting is the Visa card near $6,000.  I hate that card.  It’s a former PNC Bank Visa card that was operated by MBNA America, which was in turn scooped up by Bank of America.  The physical card doesn’t even have a bank name on it that’s how much in credit limbo it is.  There’s no rewards program associated it with it.  No cash back.  No points.  Nothing.  That card, fingers crossed, will be eliminated by the end of February, as promised in Resolutions For the New Year.  It’s possible.  If I keep stiffing the landlord.  Or perhaps if I do hit the 13-hour day mark for six days a week for a few weeks straight.  It’s just this pesky sleep thing that keeps getting in the way.  Maybe Michael Jackson was on to something?

Written by Laid-off Lawyer

February 10, 2010 at 23:48

5 Responses

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  1. Millionaire Matchmaker is hooking up single gay men with millionaires. I suggest you apply for this program. That is the ONLY way you are going to make a dent in that sucker.

    Prince Michael III

    February 11, 2010 at 08:24

  2. That’s not necessarily true. You’ve got a big hole, but if you call your credit card companies to get on repayment plans, they will often slash your rate (and more importantly put a freeze on any new charges). I got a card slashed from 15% to 2% that way.

    Also, what you might want to think about is called “snowballing.” Pay the minimum on all of your debts except for the smallest one. Pay that off as fast as you can. Once you pay that off, take the money you were spending on it and apply it to the payment on the next-smallest debt. And so on. It minimizes the impact on you personally and it speeds up the repayment process.

    Jim in Chicago

    February 11, 2010 at 10:51

  3. I’ve also suggested that to him, but he apparently doesn’t mind paying exorbitant interest rates.

    Anon

    February 11, 2010 at 18:31

  4. How long is he going to count pennies? I had Bank of America slash my interest rates, lower my monthly payment and freeze my credit – but it wasn’t all that much. Prince Michael is right -Laid-Off needs to get on Bravo’s Millionaire Matchmaker and find a rich guy. Just last night I saw an episode hooking up two very hot guys – one was 40 [the sugar daddy] and one was 26. Now that’s the way to go – if I were younger I’d register for that show myself!! Enough of this life!!

    Ladybug

    February 11, 2010 at 20:25

  5. Fine, fine, fine. I’ll google the show. You got some “in” with a producer or anyone? You keep pluggin’ it.

    Laid-off Lawyer

    February 12, 2010 at 08:31


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