Confessions of a Laid-off Lawyer

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

Supplemental Day of Accounting

with 4 comments

Total Black: $85.38
Total Red: $243,602.66

Total Red is down from earlier this week—all-time high of $246K.  But it’s up from yesterday’s post: My First Car.  And all numbers are up from my Eleventh Day of Accounting, so I thought perhaps I’d update my numbers before the 10th of the month, especially because of the recent changes to my finances.  An abbreviated version follows below:

Credit Card Debt:

Master Card: $4,332.53     [down $1,298.01 from August 2009 / down $172.80 from Eleventh Day of Accounting]
Visa: $7,826.55     [down $36.45 from August 2009 / up $176.88 from Eleventh Day of Accounting]
Visa: $4,517.54     [down $549.42 from August 2009 / down $395.00 from Eleventh Day of Accounting]
American Express: $246.20     [down $2,120.20 from August 2009 / down $2,079.16 from Eleventh Day of Accounting]

Student Loan Debt:

Federal Stafford Loans: $94,504.20     [no change from August 2009]
Private Student Loans: $31,664.44     [down $2,504.06 from August 2009 / no change from Eleventh Day of Accounting]

Back Taxes:

IRS (2007): $2,756.00     [up $524.50 from August 2009 / up $1,317.89 from Eleventh Day of Accounting]
IRS (2008): $28,486.69     [up $1007.96 from August 2009 / up $210.89 from Eleventh Day of Accounting]
IRS (2009): $2,898.36     [not listed in August 2009 / up $58.36 from Eleventh Day of Accounting]

NY State (2008): $0.00    [down $2,846.59 from August 2009]
NY State (2009): $2,844.08     [not listed in August 2009 / up $59.08 from Eleventh Day of Accounting]

Other Loans:

My mother: $54,973.16     [up $14,973.16 from August 2009 / up $5,500.00 from Eleventh Day of Accounting]
My sister: $1,800.00     [not listed in August 2009 / down $1,200 from Eleventh Day of Accounting]

The largest drops are in Private Student Loans, NY State taxes for 2008, the Master Card, and the loan to my sister.  Well . . . the largest drop my be in my American Express card.  But that’s temporary—and explains the $2,000 drop in total red from a few days ago.  The money I borrowed from my mother I sent to the AmEx card for another down-payment on the car: $2,000.00.  So, although the AmEx is down by about $2,000 from August 2009, it’s only a temporary drop until the AmEx charge posts and syncs with the Bank of America software.

Private student loans are down also because of money I borrowed from my mother.  So the increase in amounts owed to her are due partly to those borrowed funds.  And speaking of borrowed funds, my sister offered to purchase my flat-screen television and my entertainment center for $1,200.00  Rather than have her give me the cash—though I could use it right now—I just deducted that amount from what I borrowed from her.  My mother is also shopping a few other pieces of furniture around.  Might have another $800 on the way.  I couldn’t handle that in New York; not with the few weeks I had before leaving.  I would rather ship that money off to Raymour & Flanagan, or to some computer entity named “Chelsea” from “Enhanced Recovery Corporation” who are after me for the Raymour & Flanagan charge-off.

That was the worst mistake, I’d say, of all my debt fiascos.  I didn’t really need all that furniture.  I could have gone to a thrift store or some other type of discount furniture spot.  But, we live and learn, eh?  And at that moment in time, I had the severance package and never could have guessed that a year later pretty much I’d still be on the dole, as it were.  What memories do I have of “tough times” before now?  Eliminating my debts certainly would have gone faster if we weren’t in the Great Recession.

All taxes, with the exception of NY State tax from 2008, are up.  The numbers themselves hadn’t changed for a while because I only just received a statement from both the IRS and New York State.  The amounts are also up because I wasn’t able to pay them just yet.  And because of penalties and interest both government’s tack on.

As for credit cards, well they’re where they are.  The Master Card is down over $1,200 from when I started this blog.  But one Visa is up by nearly $200.  That’s disheartening.  Especially since I really don’t use that card.

Total red is also about to increase, once the papers and all arrive from the auto loan agency.  I’ll be pushing $275K by then.  But of all the accounts listed above, the least change is with my mother.  And that’s the easiest “account” to pay since I’m not getting charged late fees or over-the-limit fees or even interest.  So I need to start “racing” that debt.  I could at least send $173.16 dollars (not much in total black at the moment but an overpayment from the rental car is on its way back) and bring the amount I owe her down to a round number.  I like round numbers.  It’s hard though; any time I think of paying my mother I also think of the IRS or student loans or the credit cards—all of which keep increasing and can harm my credit report.  But if I pay $175 on a credit card, it’ll just increase by that same amount next month when finance charges are added.

Looking at the numbers laid out like this is important.  The whirlwind my life has been caught up in over the past few months has—understandably—pulled me away from the hard math.  But I’m getting back to it.  And all this said, taxes are about to drop by $7,100 when the money from my mother comes through.  That’s the amount mentioned back in The Tax Man Cometh that I agreed to send to the IRS by June 28th.  That’ll eliminate 2007 and 2009 taxes and should bring 2008 closer, if not under, $25,000.  Of course, the amount I owe my mother will increase by $7,100 as well.  I’d prefer to send any amounts I owe her to her bank directly, if I could.  But I don’t think she’d let me.  It’d be less hassle for her, but I think she only wants to make the minimum payments, something that frustrates me because the last time we danced this dance—way back in 2006 and 2007 when I borrowed money from her during my bar study period—I had overpaid her by about $4,500.  Not something I concerned myself about too much since I was making six figures.  But when it came time to look at the bills, a lot was left over after my sister paid-back the amount my mother took out via a mortgage to help my sister with a down-payment on her own house as well as to loan funds to me.  She didn’t use all the money we sent her to pay down the mortgage.  She bought clothes and other items.  Took trips. Went to the casino.  She chastises herself now for it.  But back then she had approximately $500 to $1,000 extra a month from my direct deposits.  That’s a lot of money for the Northeast Pennsylvania area.  And my father had passed just about a year or so prior—in the Fall of 2004.  So I suppose I can’t fault her too much, especially since she was always the bill-payer in the family.  A little indiscretion is permitted to us all from time to time.

So yeah . . . maybe I will send a small payment to her.  That’s all I can send right now.  The amount in my checking account is doing nothing at the moment, since I’m still without a debit card.

4 Responses

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  1. I was thinking of vacation in the Dominican Republic. Is that nearby? Have you been there?


    June 24, 2010 at 14:57

  2. “Near” I suppose is a bit relative, right? Nearer than LA was. 😛 It’s past Florida but before Puerto Rico. Just plug it into Google maps, dude.

    I’ve not been yet. Check it out though. Amazing views all over these islands, I imagine.

    Laid-off Lawyer

    June 24, 2010 at 22:00

  3. Good job getting caught up on the posts!



    June 25, 2010 at 09:11

  4. You Americans should learn to live without a credit card!!!

    We’re NOT interested in your debts!
    May your grand grand children will afford to pay them back.


    July 9, 2010 at 10:29

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