I have a few random bills that have gone into collections over the past few months. One was from one of those $80/mo data cards for your laptop. The total balance owed cingular was $460.94.

I just got a settlement offer from the debt collector on the account (er solutions, inc. out of renton, WA) for 80% of the original amount, thus, $368.75. It says I have 14 days to accept this offer.

I’m not sure what I’m going to do here. I have 1K I still owe the IRS by July. Of my lump payments (non-reoccurring) that is the most important one. As soon as I sell some more things, that will be the first payment I make. I wonder if these guys will give me a better offer down the line. It may be worth a call to see if they will accept say 50% of the original amount. I may have that in cash in the next few weeks, and if I do, I think I’ll give them a call and see if they will accept 50% right there. Should be fun.

I'm 300K in debt. Gulp. I'm 24 and day traded away a fortune. Now I'm trying to crawl back to zero. Why not subscribe to my RSS feed and join me on this journey. You can also subscribe via e-mail. I appreciate tips and feedback! ~ DebtKid

Today was a pretty eventful day.

• I had the sit down with the roommates
• I had two of my closest friends move out of state
• I told my last close friend about my whole mess of a situation

The Sitdown

One of the roommates decided to tell me on Friday he was leaving. So, most of his stuff is gone now (the 3-day notice was nice…not). The other two look like will be gone by the end of the week. So the good news is there shouldn’t be much rush or drama with them anymore. Bad news, no rent income for May, or at least very little.

Since they won’t be paying rent or very little in May, it looks like I won’t have to come up with the entirety of the heating bill, as is sounds like they will now pay their portion. So, all things considered, I’m short money, but at least can move on.

Sharing Time

I told my last close friend here about everything. It went well, it was hard, but its good that I don’t have to hide and cover crap up anymore. It’s really quite exhausting, and since I spend a significant amount of social time with this friend, its a big relief. There will still be some issues to work out here (ie…why didn’t you tell me earlier type stuff), but I think it’s going to be OK.

Down to Business

This next month is all about transition and stabilization. I need to transition into a new and still somewhat up in the air living situation (my office and beyond). I also need to continue to stabilize and grow my business this next month. I can’t get too caught up in my living situation and the house and everything and lose sight of the only income stream I’ve got.

I have to get my business revenue up to the 10K range.

Let’s say that again. I have to get to 10K. And soon. 7K just isn’t going to cut it.

Everything must go sale

My brother has offered to help me take pics of all my “stuff”. I’m going to sell it all. Save a few pictures and some books…everything I own is going to be sold this next month. I have to keep my car, computer, and business/office stuff, but everything else is going. I don’t need it….and I can’t afford to not have the cash.

My budget is still short, payroll is tomorrow, and I’m still about $100 short of what I need to cover just that.

I felt sick almost all of last week, and laid low a bit. Fair enough. I had been going non-stop for 3 months. Now it’s time to get my rear back into it. No excuses. I have no room for error in the next 2 months. No excuses.

OK, my blood is running a little hot at the moment, though its cooled down a bit. I need to organize my thoughts here, so I can prepare for a meeting with my roommates this Sunday.

I came home late tonite, and found one of my roommates still awake. I had sent out an e-mail last Friday outlining some of the things I wanted taken care of before they move out (June 1). I hadn’t heard back from anyone, so I assumed everything was kosher.

Not exactly.

There are likely to be two potential flashpoints

1. Back Utility Bill

We didn’t get a heating bill all winter (thank you puget sound energy), and then got a big 1K one in Jan. They agreed to set up a 6 month payment plan.

Problem?

This should/needs to be paid off when the house sells.

Their Solutions

Their first solution (I heard this from the roommate I would actually consider a friend) was that they don’t pay rent for May.

Wow. I was floored.

Their second was that they pay me over the six months (leaving me to come up with the now over $1300 that is due….bear in mind, they know about my financial situation)

Wow.

2. Pro-Rated Rent For May

The second potential flashpoint is that they believe if they move out May 15th they should only pay 1/2 month’s rent. (bear in mind, they have given me no notice they are leaving, and I gave them notice 75 days in advance of June 1). I think the chances they will actually move out May 15th are very small, but still, this one really gets me going.

So, those are the two potential issues. Other points to consider:

1. We have no written contract. Everything was “month to month” (as I remember it, and I remember it exact. Apparently one roommate thinks he is getting screwed out of his “12 month lease”)

2. I never made them put down a deposit

3. There are at least a few hundred dollars worth of stains, broken fixtures, wear and tear, etc. (mostly occurring when they or their friends were over at the house wasted). I have told them they don’t need to clean the carpets when they move out, and they just need to have everything out of the house.

So, I don’t think I should waste my valuable time reading up on landlord laws….but maybe I should. At most, I’ll lose $750 if the pro-rated rent happens, and I’ll have to come up with $1300, though only 1/4 of that would be my actual expense.

Wow. Nice guys, huh? (maybe I am completely in the wrong here…but gosh, wow. I’m actually not shocked at this…I was just hoping for maybe a little uptick in decency from them. I guess not)

Sunday will be interesting.

I just got back from a short meeting with my debt counselor at consumer counseling northwest.

I had sent in my first payment about 2 weeks ago, and she wanted to chat about what got accepted and what needed to change.

The Good News

The good news is that it looks like all my interest rates will go dramatically down right away, except for my wells personal line (25K), the biggest debt.

The Bad News

WellsFargo is being lame, and won’t accept me into the plan until a $1000 late balance is taken care of. So, for the next three months, my DMP (debt managment plan) payment will be $1480, and not the $960, as I was hoping.

The Funny News

My conselor, Irena, is just a hoot. She moved to the US (from eastern russia from the sound of her accent) a few years ago, and is really passionate about helping me out. She said some really great lines to me in our past meetings, so I wrote a few down today that made me smile:

“let’s make experiment” (she says this when she pulls up the calculator in windows to run numbers)

“God want you to be safety” (she murmured this one today, I think it sliped because the place is a secular non-profit, not affiliated with any church, but I’m glad she thinks God wants me to be OK)

I just had to write those down because they made me smile.

Just got off the phone after a nice chat with my Dad. He always helps me think through everything I am trying to do, and give me some good feedback.

business goals

• $9,000+ Monthly business revenue. Goal Date: June 1 2007 (current revenue is 7K)
• Reduce client cancellation rate to no more than 10 per month

personal goals

• Get house sold via short sale by July 1
• Burn no bridges with current roommates and have the landlord/tenant relationship end amicably
• talk openly with my friend about this whole mess starting in May
• find a creative solution to having a place to sleep, without spending any $
• save $1000 in my emigrant direct account (currently $300)

Sold the TV ($850…yay!). Now, I’ll use this post to keep track of stuff and add to it as needed

• 27″ 2003 JVC TV (broken cable imput)
• Toshiba TV/DVD Combo TV (gift from my mum a few years back)
• Panasonic Stereo
• Ikea Couch
• Ikea Bedframe
• Costco Memory Foam Mattress (queen)
• Pressure Washer
• Ladder
• Foosball Table
• BBQ
• Misc Carpentry Tools
• DVD’s
• Books
• Nice Scanner
• Big Printer
• Plasma TV (SOLD!)

Everything almost unraveled today.

With my family knowing, and my roommates now knowing my situation, I started to get a little lax with keeping up my facade that I hate so much. I’m reading to be done lying to my friends, but I’m not ready to face the reality of being known as the guy 300K+ in debt.

I have 3 friends here in Seattle that I am close with. I have not told any of them. 2 are leaving for another state in a week. I didn’t want to concern them with my issues, so I don’t plan on telling them for some time. The other…I spend the most time with. I want to tell very badly, but still want to wait until the other two leave.

My cover

My story I’ve been telling for selling the house goes along the lines of, “I’m thinking of moving, and want to be able to have that freedom”…yada yada yada.

The problem

The problem is that all the cover story/facade/lying is exhausting. So exhausting, I think, that its gotten me sick. I woke up this morning with a horrid sore throat, and feeling like poop.

I just want to get this next week over with so I can tell my other close friend and be done with this whole emotional mess of telling people and get back to businesses.

Being an entrepreneur is what I am. Granted it’s not who I am. But it is what I am good at, and truly enjoy. I love watching something that I created grow. The thrill and pride in doing something that no-one else is doing (or doing something that other are doing, but better!) is truly exciting to me. I want to be able to focus 100% on that part of my desires starting in May.

The Plan

If everything goes according to plan, I will be moving out of the house here near the end of may. I’ve begun putting some of my possessions up for sale on ebay and craiglist, and will continue to do so the rest of this month and into May. I think I can raise 2-3K from all the odds and ends stuff that I’ve accumulated these past three years. It will be well needed, as my budget is short still over 1K.

Updated Budget

Made this with budgetsimple.com

Monthly income is currently around 7K.

As you can see, I need the extra cash at the moment. Also, the budget above mixes both personal and business expenses, as that is how I have to view my finances at the moment.

Both sides of your mouth

I couldn’t bear to not let my friend know that I was at least planning on staying in the city hear (until this, she had also been hearing my “I may be moving” line). So, I told her, I had no plans to move (except for to my office…I didn’t say that!). I told her I would explain more in a week or two.

This was before we went to church, after the service, while chatting with some people, they asked what I was up too. I gave my standard front, as mentioned above. A lie.

When walking back to my car, my friend says, “you’ve got me really intrigued now…you’re talking out of both sides of your mouth”.

I know.

it sucks.

After realizing it’s been 3 months of no trading, and trying to turn my life around, I also realized I’ve pretty much worked 3 months strait without a “relax” day. Sure, on the weekends I’ve not always gone into my office, but I’ve always done some work from home. So, this friday I’m getting some things done that I’ve been putting off.

1. Get a haircut - I’m starting to look like shaggy dog. A friend gave me my last one (free!) and I’ll see if she willing to do it again for me tonite.
2. Get out of the office before 5pm - It’s going to happen!
3. Hang out with my little brother
4. Change this awful domain name…I even screw up typing in my debt number half the time. So, I have a new domain where I’ll be keeping my journal:

http://www.debtkid.com

With my DMP and my house on the market, I’ll need to recalculate my total debt load. It’s still not going to be pretty. I didn’t even include the 50K in student loans I have as well in that original number. In any case, I feel like I’ve hit somewhat of a turning point:

• I have a good plan for the house, and decent options for where I will be living in the summer
• Business revenue will be over 7K next month shooting for 10K by end of June.
• I’ve found writing here really helpful for organizing my thoughts and goals. Plus the comments I get are often very, very helpful (ie…house siting!), and encouraging. So, thanks : )

So, again, I won’t be posting on this site anymore, but will keep my journal going at www.debtkid.com. I’m going to redirect this site over, as soon as I post this.

I set up a savings account last year, and put a whole $1 in it last year. When I sold my bike a few weeks ago, I put $300 in. My emergency fund, you could say. I’ve decided to put any adsense $ all into this fund. So, any checks from google will go strait into here. As much as I need cash right now, I need to learn to save at the same time.

It’s been three months since I came clean with my whole family, and stopped trading away money I didn’t have.

Whew.

When I originally spoke with my father, he gave me until April 1st to get things figured out, or start looking for a lawyer. Well, I definitely haven’t gotten things figured out completely, but I have made alot of progress. Still a huge ways to go.

Highlights

• House situation getting figured out (should find out about short sale approval early next week), buyer ready to go
• Business revenue will be over 7K next month vs about 2K 3 months ago
• No desire to trade or use credit at all (of course, I have none to use!)

Lowlights

• No more fancy house
• Having to explain situation to roomates
• Will be living in office (or house sitting as much as possible!) come June
• 15+ voice messages a day. Kind of draining…
• Still have to tell a number of close friends…

To Do:

1. Start selling crap. I need the money to make payroll and my 1K debt management plan payment.
2. Keep working out. When I’m running, or playing a sport, everything goes away. I’m in darn good shape right now. Should only get better once my gym becomes my only source of a hot shower.
3. Tell my closer friends. This will help my emotional state. I hate having to continue covering up and lying about my situation. It’s incredibly draining (especially after 3 years of it)
4. Stay Sane.

Dealing With Creditors

I’ve gotten pretty good dealing with the creditors. I play super nice. I mean, as soon as they pick up, I’m a charmer. I’ll crack jokes, let awkward silences happen, whatever it takes to put the situation in my favor, and keep me sane.

Today I worked out payment arrangements on my two big business lines of credit with WAMU and WellsFargo. The WAMU line is 30K and Wells, 20K. Neither of those are in my debt management plan, and so I have to work them out on my own. I’m making half payment to each next week (need to sell crap!), $220 to Wells (actually already made today) and $295 to WAMU.

I’ve learned that sometimes saying nothing is best when talking with the debt collector types. As long as you are OK with silence, it can really help. Often they (especially if you are being quite nice) will outright tell you the best option for you to stay out of the next level of collections (or lawyers!).

Emotions

I was really down last night. I almost broke down in front of one of my good friends. She doesn’t know anything yet, and I can’t brake down in front of her…at least not yet.

I’m really up and down lately. I’m used to being such an even keel…(and usually very on the positive side). I don’t like feeling down, I have so many good things in my life…

OK, enough downer talk. Back to work….(need to get to 10K a month in revenue!!! I’m so close…)