June 2008 Debt Report
Debts Paid in Full:
- Debts paid in full: 8
- Amount paid in full: $5,345
Status Report:
- May 2008 payments: $526.84
- Total amount of payments made to date: $13,983
- Debts left to pay off: 22
Balance Report:
- Original Debt Balance: $246,281
- Current Debt Balance: $250,654
- Balance change since starting the plan (April 2007): $4,373 (increase)
Total debt balance including 1st mortgage on house: $368,270
After Bankruptcy Projection:
Debt remaining after bankruptcy:
Debt snowball:
- CFCU Visa: $4,596.53
- Chase HELOC: $5,020.19
- Capital One HELOC: $21,576.12
First mortgage balance: $117,616
Debt Balance excluding co-signed student loans and first mortgage: $31,193
Total debt including first mortgage, excluding student loans: $148,809
- 148,809/368,270 = 0.53 x 100 = 53% of the total debt will remain
Student Loans:
- Co-signed student loan approximate balance: $45,238 (need a complete audit on these accounts; not sure this balance is correct or even close)
Possible total balance including 1st mortgage: $194,047
Discussion
When I calculate debt remaining, I mean everything but my house (1st mortgage), so remaining would be $31,193 if I don’t have to pay the student loan, and $76,431 if I do. Total debt excluding the 1st mortgage is $250,654.
Calculating what I’ll have left to pay as a percent without the student loans is as follows: 31,193/205,416 = 0.152 x 100 = 15.2%
Including the student loan, the percentage will be: 76,431/250,654 = 0.305 x 100 = 30.5%
I’ll be wiping out 84.8% to 69.5% of the debt in the bankruptcy.
Why do I leave out the debt on my first mortgage?
- We have to live somewhere and pay either rent or a mortgage. Selling my house would wipe out almost all of those debts, but it wouldn’t change the fact that we have to pay for a place to live.
- Rent in our area is still inflated from Hurricanes Katrina and Rita. A smaller rental house runs $1500 to $1800 per month. Even with the 2nd mortgages we’re better off staying where we are, paying less per month to live, and not incurring all the expenses of moving.
My 1st mortgage payment totals $980.73 and includes the following:
- P & I - $739.14
- PMI - $66.34
- Remaining escrow (taxes, insurance) - $175.25
Second mortgage payments are:
- $76
- $130
Total to stay in current house: $1,186.73
Why a house? We have 3 animals, including two large dogs (65 lb and 85 lb). It’s hard to find any rental at all that will allow one large dog, let alone two. An apartment is completely out of the question. Our animals are part of the family and we’re not giving them up.
FYI: The going rate for a 2 bedroom, 1 bathroom apartment is currently $900/mo anyway. If we move to an apartment I’d have to pay to store some furniture, and storage facilities also have inflated rental prices. The size I would need costs $100/mo.
Co-signed Student Loan
I still 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 require an audit of these accounts as part of my remaining obligations and I have to call and request it.
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 soon.
Tutoring is busy this summer
I don’t have many LEAP students, but my tutoring company has scheduled me for 10 hours per week so far, and more students are coming each week for summer enrichment 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 there.
I’m pleasantly surprised because I didn’t have any company students last summer. This summer I started tutoring the week after Memorial Day week, just after school was out here.
I’m deliver pizzas on my free evenings part-time.
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Pingback by Update of June 2008 Debt Report | Debt Free or Bust | July 4, 2008
Why a house? We have 3 animals, including two large dogs (65 lb and 85 lb)… we’re not giving them up.
Then I guess you aren’t really serious about paying off the money you took, and claimed you would pay back. Bottom line.
Additional bottom line input — You seem to do a whole lot of magical thinking and excuse making between a lot of blah blah words that you use to make yourself and your situation *seem* rational.
The idea of the ‘net as some money machine. BS — you are simply addicted (yes addicted) to messing around on the ‘net, much like gamblers want the dice, and alcoholics want their drink, and and sex addicts need their dalliances… You just want to use the excuse that it *could* make money for you (but you, of course, know better deep inside. Look at the amount of hours it takes versus cost versus return… it’s literally insane to hold out hope that blogging can become a significant NET income generator for you!)
All this CFP talk, etc — total crap. You have proved you are NOT to be trusted with your own money, much less the financial affairs of others. Get a regular, boring job. Try to amortise the money blown on your degree and past work experience. Why can’t you rehabilitate yourself as a Chem Eng? Did you really burn your bridges that badly?
Comment by Cold Shower | July 14, 2008
@Cold Shower: you can stick your opinion where the sun don’t shine and F-you. Since you’re not using a real name (let alone YOUR real name) you’re a coward. It’s easy to dis people anonymously on the net. Grow some balls.
I already answered the job questions, house questions and about the pets, and about why I filed in comments and previous posts. I’m not a chemical engineer, I’m a chemist. Different degree required and all. I teach now or is teaching not a career? I haven’t burned any bridges, there just aren’t industry jobs here in my areas of expertise with my number of years of experience (20)
And don’t call me an addict. You don’t know me. I’m not addicted to anything except maybe coffee. Take my coffee away and I’ll scratch your friggin eyes out. You can have my computer. I can use one at the library to check my email.
I probably don’t spend near as much time online as you do. I trade TV time for reading books (made out of paper) and online time. How much TV do you watch? I watch a couple of hours of TV a week. There are a few shows I really like and I watch them on Friday nights.
What have you read lately? I’ve finished 12 non-fiction books and 4 fiction books since January working 50 hours a week. Not 200-page paperbacks either, 500+ page hardback books with Times-New Roman font size 10 print. I didn’t buy them either. I checked them out of the library and read them for free.
I make a few hundred dollars a month online from affiliate sales and freelance writing. That is beginning to grow a little now that my URLs have been around awhile and my Google PR is higher. That gets more sales.
I guess you think blogging, marketing a blog and putting products on a blog takes a bunch of time. It doesn’t. I maybe spend 10 hours a week on it. Right now I’m spending less time than that because I’m sharing the desktop computer with my son. That’s all I have unless I want to give up reading, and I don’t.
My other income streams are pizza delivery and summer tutoring. After being laid off, I’ll never depend solely on a single income again. Losing it is too likely in today’s job market, even as a teacher.
Sherri (my real name)
Comment by joubess | July 15, 2008