7 posts tagged “debt”

I thought I'd give a little update on my finances.  I decided to follow total money makeover plan after reading Dave Ramsey's book (that I checked out of the library, of course).  If you can get past the Christian slant of his show, it's quite entertaining and informative.  So, when my tax refund comes (which better be soon since I filed 2 weeks ago online) the money will go directly into my emergency fund instead of to a credit card.  That kind of kills me, but I do see the value in it, especially since I have gone off of credit cards.

So here's the low down:

Chase Amazon account:  $7, 149 (getting ready to transfer balance to 0% interest card)
Chase Visa:  $2,074

Washington Mutual:  $2, 239 (down from $3,000, with another $300 payment pending)

Gap Visa:  PAID OFF $1750

American Education Services:  about $100,000

Xpress Loan Servicing (servicing my Sallie Mae loans):  $43,000

Savings:  $120 in ING CD

Checking account:  $800 (but I do get paid today yay!)

Today a speaker from some law school is coming to our office to discuss the new Loan Forgivenes act passed last year.  I'll defintely be bringing my calculator to see how I'll be affected.  I'm desperately hoping it will lower my $1070 a month loan payments. 

I signed up for some weekend work shifts (aka Night Court) to bring in an extra $200.  It's suprising what a big difference that makes in my paycheck.  I was hoping to get a shift for some weekend prison client interviewing, but I didn't get to the sign up sheet in time.  I'm still looking for some additional part time work,  but having a hard time finding it.  I've been trying to spread the word that I'll do basic tax returns.
Today I plan to take some more clothes over to Buffalo Exchange so I'll have some pocket change for the weekend.

I did my budget for this month, and it looks like I'll have about $600 after bills are paid to go towards credit card payment.   The longer I do this, the more horrified I become at how carefless I've been with tracking my money.

Money wise, it's been a good week.  I had two full days where I didn't spend a dime.  Of course, that was because I was bedridden with a massive headache.  I know I've written about my headaches before, and I finally have an appt scheduled for this coming week at the Headache Clinic at one of the local medical schools.  I am very excited, even though it will set me back about $400 that most likely will not be reimbursed through insurance.  But when it comes to my health, I don't mess around.  I don't mind spending this money.  Besides, I have $300 in Visa Gift cards that I'll be using, so it really will only cost me $100.

Anyway, I finally paid off the Gap credit card entirely.  Wahoooo!!!!!!!  I've made approx. $100 on eBay so far, and I'm waiting on some more auctions that are about to end.  This is very exciting.  The money goes right into my PayPal account which then goes right to the credit card.  I also negotiated a fantastic deal with Chase bank after threatening to close my account.  Two years of interest free payment for a one time fee of $63.  If I make a purchase, the rate is RIDICULOUSLY high.  Which is okay, because I've already destroyed that credit card.

I did my taxes last night and went to efile them today but the IRS website is down.  Don't forget, if your adjusted gross income is below $50,000 (or is it $55,000?) you can file online for free.  My refund should be about $1000.  Higher than I prefer, but I really can't take anymore exemptions that I already do.  I can't decide between giving that $1000 to the credit card company or put it into my emergency fund (which currently only has $20).

Today was a blue day.  I'm not sure why, maybe it was the early morning drizzle or the endless number of emails that ended up in my mailbox. 

I think it was because when I checked my Chase credit card account, I saw that the $100 extra payment I had made was essentially "canceled" out by the $100 finance charge just levied.  And they raised my rate.  I can't believe it - is that how they reward customers who not only pay on time but make additional payments?  Well, starting tommorrow Chase will have one less customer when I transfer my balance to another account for that 3.99 fixed rate and no transfer fee.

I just felt like I was in a blue funk all day.  The only positive thing about that is that I had no urge to spend any money, which is what I'd usually do when I was feeling down.  Instead, I perused some personal finance forums and made my own coffee instead of Starbucks.

Then, when I came home, I was greeted by my Gap Visa credit card bill.  Which is almost paid off (only $300 to go!).  And what is inside?  A gift card for $20.  The catch to those giftcards is that you have to use your credit card to make the purchase.  Evil.  I'm glad I handed that card over to my parents. 

But the night took a sudden upturn when I checked my home email and found this!  How awesome is that?  Last week I won the Amazon gift certificate and today I win a book!  It really made my night and lifted up my mood.

Lots of changes have been happening.  It's really amazing how many other things in my life are starting to settle down and fall into place now that I've decided to get my spending and debt under control.  Maybe because I feel such a sense of relief I end up creating good karma or something.

So, the additional changes I've made:

1.    Walking to work instead of taking the bus.  Saves:  $78 a month.  It's about a 20 minute walk if I go really fast.  I have a FSA account where the $ can be deducted for public transportation (last year I had the full amount deducted).  This year I dropped it to $20.  Instead of buying the monthly pass, I'm walking and saving them up and  I'll just buy tokens to use only when the weather is bad.  Otherwise, I'm hoofing it.

2.  Quit the gym.  Saves:  Okay, I did that one awhile ago.  But with all of the walking to and from work (plus the dog 2-3 times a day dog walk), I'm getting enough exercise.

3.  Dropped the dog walker services.  Saves:  about $80 a month.  I feel bad making the little guy wait at home all day, but he is paper trained and he can hold it.  So now we go for an extra long walk in the morning (45 min - 1 hr) and an extra long walk after work, and a quick one before bed.

4.  Lowered cable package.  Saves:  $60/month.

5.  Bringing my lunch to work and not eating out for dinner.  Obvious.

6.  Making my own coffee.  I slipped 2 times last week and bought coffee out, but that's a huge improvement over my daily (sometimes 2x daily) habit.  I also will pop over to ING and make a deposit because then you get a free cup!

7.  Saving electricity.  Savings:  to be determined.  I'm a big leaving-all-of-the-lights-on kind of gal.  I get kind of depressed when it's all dark in my apt.  But I'm now making an effort to turn the switch to off when not in use.  My electric bill is usually only about $30 a month.

8.  Cell phone.  I did check to see if there were any cheaper plans, and there aren't right now.  I don't go over my minutes, and I don't have a land line, so until there's a better offer out there I have no reason to switch.

9.  Ebay and Buffalo Exchange.  Raised:  over $100 so far, which has gone right to the credit card payment.  I've sold yarn, craft supplies that I don't use, knitting books I don't look at anymore, clothes I no longer wear.  Buffalo Exchange doesn't really give a good rate of return, but it's better than nothing.

10.  Loose change.  I no longer pay with coins.  Any cash I've spent (total last week was under $20) I've used bills.  The change goes into the loose change jar.  I deposited $69 last week in change!

I'm still in search of that part time job.  I'm following up on a few leads at some private firms, although I'm really not crazy about the idea of it.  I can live on my income if I just get control over my spending.

Unexpected expenses this week:

That damn dog, who is by far the most expensive "investment" I've ever made.  He ran out of his heartworm medication this month, which put me $28 in the hole.  Oh well.  It could've been a lot worse, he could have actually had heartworm, right?

Purchases made today:  1 coffee

But I deserved it!  Seriously.  Yesterday one of the attorneys in my office (who also happens to be one of my closest friends) mother went into the hospital.  Very serious.  She had a trial today that I offered to cover. 

I haven't had a trial trial (like a real trial) in....3 years now?  Those dumb Megan's Law hearings don't count to me.  Nothing like meeting your client the morning of trial.  It was a drug case, an excellent case for the defendant as there really wasn't much tying hiim to the evidence. 

Which STRESSED me out.  It's no big deal when you think/know your client is guilty.  But when you think they aren't, or you think you should win....that is stress.  Combined with feeling kind of rusty in a courtroom, my nerves were a little frayed.  Plus, I only have one suit that fits me right now and I was worried that it, too, would end up being a little too tight.

So after a late night of preparation and a sleepless night of toss and turns, the case ended up being continued anyway because the Judge was out sick.

Go figure.

But after all that, hell, I needed a cup of coffee.  Better than a beer, right?

Now, the old me probably would have headed over to a little boutique and bought a shirt or some other little present for myself.  That's my problem.  Emotional spending. 

The thought to do that never even occurred to me today.  Now that's progress!

Did I mention this in my last post?  I can't remember, so I'm going to post about it anyway because it makes me so happy. 

I was a gold freak back in the '80s.  Yeah, think Mr. T.  Me and my gold rope chains and gold hoops.  Well, all good things come to pass - now I HATE gold and the price of gold is high.  I haven't worn gold since 1980 and I never will ever again.  Blech.

So, last week I gathered a few old 14 K gold rope chains and 4 rings that ex-boyfriends gave me.  Tacky, tacky, tacky jewelry.  I saw that a nearby jewelry store was buying gold, so I figured I'd sell it.  I thought at most I'd get $30-40.

I walked out with $430.  Cash.

I immediately crossed the street to the bank, deposited it, and transfered that $430 over the my Gap Visa credit card, which had a balance of $1700.  Wahoo!

The good fortune didn't end there!  I then called my cable company to downgrade my cable.  Basic cable in Philly starts at about $60.  I also have internet and On Demand.  My bill was $130 a month.  I was going to downgrade to the most basic of basic packages.  Fortunately for me, however, the employee on the phone couldn't figure out how to enter the right codes into the computer to downgrade my package.  After a few minutes, he gave up in frustration and gave me a new 6 month promotional package -- for only $69 a month I'd have the EXACT same package that I was paying $130 for!  Wahoo!

I then hiked over to Urban Outfitters to return a sweater I'd gotten as a Christmas gift.  I only wore it once and the seaming had come undone.  Normally, I probably would have stashed it in the back of my dresser and forgotten to return it until it was too late.  I took it over, made my exchange, and got some $ back because the sweater was now on sale!  Wahoo!

Then I darted on over to ING and got a free coffee.

I went home over the weekend to collect the rest of my gold.  Based on what I sold last time, I think I have well over $1000 in jewelry.  Well, let me rephrase that.  Chase Visa will have about $1000 in jewelry.

I've also been putting up some things on ebay  - yarn, computer stuff, crafting supplies.  I'm making quite a return on the yarn.  Stuff that has been sitting in the attic for the last 2 years.  I never realized the amount of EXCESS I engaged in....It's kind of disgusting.  There's just so much STUFF.  Stuff I don't need. Stuff I bought to feel better but never really felt any better after I had it for a while.  Kind of like how gum loses the flavor too quickly.  I'll post more on this later - my tendendcy to engage in retail therapy.

It's a new way of living for me.  Bringing my lunch to work, not eating out, not buying 2 starbucks everyday.  I thought it would be really hard, but it's kind of liberating.  For the first time this month I won't be panicking when my student loan payments are deducted from my checking account - there will be at least $300 left over so they won't bounce.  That feels a helluva lot better than any new pair of Steve Madden shoes feel.

By the way, these  things really do work.  (Just saw an informercial on them, thought I'd pass on some good $$$ saving advice). 

Last week I happened to stumble upon this fantastic financial application, Mint.  I entered all of my data, and BAM - my debt:income ratio was right there. 

BAM.  Indeed.

I knew I was in debt from my student loans ($150,000).  I had a vague (emphasis on the "vague") idea of how much I owed on credit cards.  I guessed it was about $7,000.  I knew that I was an impulsive (and sometimes even compulsive) shopper.  More on that later.

I am 33 years old.  I have nothing left saved for retirement (more on that later, not entirely  my fault).  I am earning about $3000 a month as a public interest attorney.  My student loan payments are not $1050 a month.  I am on a 30 year repayment plan.

I do not own a car, I do now own a house.

I originally started this blog because of a bad break-up from a toxic relationship.  My motto was "the only way out is through."  My New Year's Resolution is to get out of debt.  I have cut up all of my credit cards except for 2 (which I have handed over to my parents to keep) and my debit/credit card, which is now in the freezer.  I have contacted my credit card companies for better interest rates.  My student loans were already consolidated and refinanced.  I have applied for a part-time job.

Today I downgraded my cable and opened up an ING checking account because of the great interest rate (I already have a savings there, of course there's no money in it).  BTW, if anyone is interested in opening up an ING account PLEASE email me - if I refer you I get $25.

So enough blogging about my poor choice in men (well, not entirely).  The blogging about my new debt-free life has begun.