May 2008 Debt Report
Debts Paid in Full:
- Debts paid in full: 8
- Amount paid in full: $5,345
Status Report:
- May 2008 payments: $940.89
- Total amount of payments made to date: $13,456
- Debts left to pay off: 15
- Next debt in line before bankruptcy: Northland Group (Cap One Visa): $3,717.17
Balance Report:
- Original Debt Balance: $246,281
- Current Debt Balance: $248,020
- Balance change since last month: $1,739 (increase)
- Balance change since starting the plan (April 2007): $1,739 (increase)
After Bankruptcy Projection:
Debt snowball:
- CFCU Visa: $4,402.81
- Chase HELOC: $5,021.64
- Capital One HELOC: $21,637.43
Debt Balance excluding co-signed student loans: $30,985
- Co-signed student loan approximate balance: $45,051 (need a complete audit on these accounts; not sure this balance is correct or even close)
Debt Balance including co-signed student loans: $76,037
First mortgage balance: $117,803
Discussion
I paid off two small debts that crept up on us: $140 to Professional Emergency Physicians from when my son needed stitches a few years ago, and One Hour Air Conditioning for last year’s cleaning and maintenance.
Since I haven’t received anymore notices from the student loan people, it’s possible the friend I co-signed for is paying them again. The bankruptcy trustee will likely require an audit of these accounts as part of my remaining obligations. If the trustee doesn’t, I’ll require one before I start making any payments. I don’t know what’s been paid or what is still owed. I won’t make any payments on these loans until I pay off my own debts. It’s the biggest balance debt anyway, so would come last in the debt snowball.
I didn’t pay anything on the debts I’m going to bankrupt. I don’t see the point of spending money on them when they will be gone about this time next month.
New Summer Income Source
I found a new tutoring opportunity after school is out. All public school students in the 4th and 8th grades must pass the Louisiana LEAP exam to progress to 5th and 9th grades. If they don’t pass in the spring they have a chance to take it again over the summer. Failing 4th grade LEAP isn’t too big a deal. Students who fail it often are on the young end of the age limit and need another trip through 4th grade if they don’t pass LEAP remediation in the summer.
But 8th graders who fail the LEAP are extremely stressed out to pass it over the summer so they can go to 9th grade with their friends. It’s a huge social issue with 8th graders who need remediation. Those parents are very motivated to help their kids succeed and will pay for tutoring on top of the school system’s program.
This test is a must-pass thing. Even if a student passed all classes in 4th or 8th grade, they fail if they didn’t pass the LEAP test.
I made a flier, I’m getting it copied tonight, and I’m distributing them starting Monday to the public middle schools to give out to students who failed the 8th grade LEAP test. A friend who works in the school system has several of the remediation workbooks and is lending me a set to use over the summer. I’ll have to make copies for my students, but that’s relatively cheap compared to what I’m charging. I should be able to start working with these students as soon as school is out, but may not get as much work until remediation begins the first week of June. The test will be administered again the first or second week of July.
I’m charging $25/hour. I’m not charging full price ($45/hr.) because these are public school students and the families may not have the money private school families have. That’s $6/hr. more than my tutoring company pays me. Another reason to only charge $25/hr. is I’ll be undercutting all the tutoring companies so I’ll get more students.
Depending on the amount of work I can score, I’ll deliver pizzas on my free afternoons and evenings. I’ll go up to full-time pizza delivery after LEAP test tutoring until mid-August when tutoring picks back up. Then I’ll go back down to part-time pizza delivery again.
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I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog.
Tim Ramsey
Comment by Tim Ramsey | May 9, 2008
I am earning 200 a week between blogging , ebay and etrade it is amazing the stuff that people will buy from junk out of my barn to stuff new at the outlet mall , I even sell bumper stickers on ebay about high gas prices that I make on a walmart ink jet printer , i am on a journey myself to get out of debt and slavenomore , good luck !!!
Comment by david | May 9, 2008
May 2008 Debt Report | Debt Free or Bust…
This blogger is struggling to get out of debt, is planning on filing for chapter 7 bankruptcy in May 2008, and has been fighting to avoid it for over a year. She posts monthly reports and stories about her journey to debt freedom. This post is her May …
Trackback by bloggingzoom.com | May 10, 2008
@Tim, Thanks! I hope I keep writing well enough that you’ll keep reading.
@david, Good luck on your journey to debt freedom. I know how tough it is, but I’m learning to get creative about extra income. In the last couple of days I earned an extra $9 just submitting a couple of articles for paid publication on Associated Content. I already had them written and will use them in my email newsletter on another blog. I just have to think about it and make sure I submit articles for payment when I write one that won’t be published elsewhere on the web. I do a little eBay, but I earn more with garage sales and we’re about out of stuff we don’t want.
Friends are also coming up with opportunities since I asked around in the education sector, hence the summer tutoring.
Comment by joubess | May 10, 2008
This sounds like a more realistic plan to me, but I do have a question: why will you still have three debts after filing bankruptcy? They sound like cc/loan debts. Won’t they be cleared once you file?
Comment by db | May 10, 2008
@db: Two of the debts are home equity lines of credit (asset secured). If I don’t pay them I’ll lose my house at worst or they’ll chase me and sue me at least until I pay them.
Student loans are not bankruptable, and I cosigned so I’ll have to pay if my friend doesn’t. I will try to get this bankrupted if I can since these are private loans and not federally guaranteed. But I’m pretty sure they still aren’t bankruptable.
I’m keeping my credit union visa account because I don’t want to have to change credit unions. They treat me very well, my interest rate is good, and I’m current on this account. I can afford to pay it off over time even with my income still being lower than it will be. My income is growing, but not as fast as my debt balances, hence the bankruptcy.
I do feel like a big weight has been lifted off my shoulders and that this is the right course of action.
Comment by joubess | May 12, 2008
[...] in math and reading/language arts. If you don’t know what LEAP is, please go back to my May 2008 Debt Report and read about it [...]
Pingback by June 2008 Debt Report | Debt Free or Bust | June 18, 2008
It’s always fun to come across like minded people. What would the stress level in this country be if people were out of debt? Why can’t people seem to do it though, there is plenty of information out there. How can people make the self discovery to do it? Show them the possibilities and they will change, with no judgment or force. Have a happy Independence Day - hopefully from debt. Say hello at http://www.axiommoney.com
Comment by Smokey | July 3, 2008