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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