Confessions of a Laid-off Lawyer

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

Eighth Day of Accounting

with 4 comments

Total Black: $219.05

Here’s the Breakdown:

Primary Checking: $28.50
Secondary Checking: $0.00
Savings: $2.22
PayPal Account (Personal): $2.91
PayPal Account (Blog): $100.08
Amazon Payments Account: $0.005
Mutual Funds Account: $85.34

FICO Score 506

Total Red: $226,635.41

Here’s the breakdown:

Credit Card Debt

MasterCard: $5,626.80
Visa: $8,160.00
Visa: $5,5,288.67
American Express: $1.537.62
Raymour & Flanagan Credit Line: $6,340.68
Saks Fifth Avenue Credit Card: $414.72

Student Loan Debt

Federal Stafford Loans: $94,504.20
Private Student Loans: $32,155.65

Back Taxes

IRS (2007): $1,438.11
IRS (2008): $28,275.60
NY State (2008): $0.00

Other Loans

My mother: $42,973.16 (+ additional $4,000 loan to help with February and March 2010 rent).

There’s the numbers.  AmEx is back up because of charges to Time Warner (over $400—not sure how that’s happening still when I no longer have cable) and also to the IRS.  But otherwise most other accounts are down.  FICO score is up from last month.  And I finally returned the “borrowed” blog donations to my blog PayPal account.  Gettin’ there.  Just gotta keep at it.

No updates yet from jobs or offers that I mentioned in Dream Big, Dear Gemini.  All in good time though.  Shorter post tonight.  I’m working late yet again at the contract attorney position.  Yesterday thirteen hours.  Today probably fourteen or fifteen.  Next week will be a good check!  Just in time to pay my mother back when I visit her next week.  Getting my taxes done in Pennsylvania by the same person who did her’s so we can discuss any issues involving her loans to me and all that jazz.

Written by Laid-off Lawyer

March 10, 2010 at 23:27

4 Responses

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  1. Thanks for sharing this information. I agree with previous posters that you should include the $4000 loan in the black even if it is temporary.

    Have you thought about closing your mutual fund account? $85 is doing nothing there, but could be useful to avoid overdraft fees in your bank account. Same with the paypal money. Or maybe combine both to pay off %50 of Saks. The satisfaction of getting even a small credit card paid off and canceled is a great feeling.


    March 11, 2010 at 10:18

  2. I know I’ve suggested this before, and I know other people have too, but doing repayment plans on your cards will help you get out of debt faster by lowering your interest rates and your monthly payments. At a FICO of 506, any hit you take for closing your score will be more than offset by the benefits you get for lowering your utilization ratio. You should keep a couple cards, but do you really need that many?

    Not going to keep harping on it, but I really would like to know why you won’t do this. It would help so much.

    Jim in Chicago

    March 11, 2010 at 11:10

  3. I have to agree… dedicate what you can and pay off and close the Saks and AmEx. You mention doing things or “psychological satisfaction,” and getting those two things off of your balance sheet will make you feel better.

    As for any effect on your FICO–it’s in the pits anyway, so it isn’t like you’d get offered some great loan terms now that you wouldn’t if it dropped a few points. In fact, I wouldn’t even bother paying to check my FICO until you make some more serious progress.

    Here’s some additional food for thought: I assume that any respectable apartment/landlord in NYC does a credit check on prospective tenants. At the place where you now reside, if you didn’t already live there and you applied, would they allow you to take on a lease at your current rent or would they find you unsuitable/an unnecessarily high risk of being a “late-payer,” “deadbeat,” “eviction waiting to happen,” etc.

    If so, what better information can you ask for that you should get a roomie or two (if you are allowed and if space permits), or find out if some other struggling attorney/attorneys in your contract job want to find a place together to save some money?

    As it stands, all other things considered, your apartment choice is nonsensical when it comes to your current goals.

    It seems like a potential problem is that you may be living a lifestyle of someone without $230,000 of debt that is living paycheck to paycheck. That’s fine (although not smart) for someone without the $230k of monkey on the back, but it is not fine (and also not smart) for someone with the pet monkey.



    March 11, 2010 at 21:59

  4. My final paragraph above is a separate thought…I suppose I should have written it in a way to make that clear.

    It does relate to the rent/apartment situation, but I was being more general.

    Oh if we only could edit…



    March 11, 2010 at 22:01

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