The past few days have been a whirlwind. I’ve moved into my apartment and got a cheap used twin mattress on craigslist to sleep on. It’s wonderful, really it is. It still doesn’t feel like a “home” yet, but I think that will take some time and other people visiting to make that happen.

Like a hotel

It actually feels like a hotel. Really. When I went on my trip down to California I stayed in 2 cheap hotels, and that is what my place feels like now. Only not a cheap hotel, maybe like a decent midrange hotel.

I think this was a good move. I’ll have to double pay for office space for a month, but in the long run working from my apartment will be a good move for my business and for my sanity as well. My traditional office had no windows, nothing but white walls. 2+ years of that, and I think I’m starting to go a bit cooky.

Better work environment

I’ve setup a little space in my living room for my business computers and its a much better work environment. Plus, I’ll be able to save more money by making lunches here. We’ll see how it all pans out, but so far I’m feeling pretty good about getting this place. Money is of course insanely tight, and I had to sell the last of any value possessions I had, but hey, I’d rather have a place to sleep than some electronic equipment! So, that’s that.

Business Update

With a few good nights sleep, and not sleeping on the ground, my productivity is back way up again! I didn’t realize how much my situation in the office was really affecting me (in all areas of my life) until I was out of it. My brain is moving much smoother now, and my business performance is up as well.

My total business revenue will be up near the 10K/month for this month. My new Plan B project is starting to make some decent revenue. The problem is that revenue ain’t profit! We still have some significant costs in my Plan B business. I can scale it up pretty quickly as we add clients, but our gross profit margins are in the 20-30% range. I think this project potential is around 30K monthly. That is revenue though, GP of 9-10K would be awesome though. I could avoid the BK and start really moving on my business debts.

There just isn’t enough time in the day!!

My Plan A business is coming along nicely, but won’t produce any revenue for at least another 6-8 weeks. It could generate in the 10-15K/month range with much higher profit margins (70-80%). I think its either going to be a big hit, or just kind of languish. We’ll see. I’ve been working on this project for almost 8 months now, so I’m excited to see it coming to fruition.

“Plan C” Project?

I might be crazy by trying to launch another project right now (I am). But, I have a decent idea that could potentially generate some profits within the next month or so…which is what I really need. The problem is that I’m not sure its actually a good idea, and I don’t want to waste my valuable time on something that isn’t gonna fly.

I feel weird asking this, but is there anyone out there that would be willing to critique my idea and possibly give some pointers on it? You don’t have to sign up for anything, just e-mail me: admin @ debtkid.com and maybe give me your first name. I don’t want to publicly have people scrutinize the thought (in case it actually is a good thought!). Anyway, e-mail if you are interested, I won’t spam you or try to sell you knives you don’t need or anything, I’d just like your honest feedback. Thanks!

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

I feel spoiled right now. I have a fridge, a stove, and a bathroom. I am content.

Now its time to bring the business to the next level…

A producer from ABC News’ 20/20 e-mailed me earlier today and wanted to chat about a story they were working on of people in unique living situations (office living?) because of the mortgage slowdown. We chatted for about 7-8 minutes, and then she asked if I’d want to come on camera.

I turned her down.

I told her when I pay down my debt, or sell my business for like a few million, I’d be more than happy to come on the show. She may use my comments for the story, and that’s fine, but I don’t want to be that screw-up that on tv for being a screw up. I already feel bad enough about my situation as it is.

Was this a good move? I mean, sure it would have drove a ton of traffic to this blog, but I need to stay focused on my business right now that is actually making good money. And I don’t make any money from this, maybe I should put some adsense ads back up…I don’t know. I’m stressed. And apparently quite whinny as well. Hmmph.

So, I’m supposed to be getting a place tomorrow. But I’m also supposed to be bringing nearly $3,000 as well.

I don’t have it quite yet, and I’m really starting to stress. As usual, the mistake is totally my fault, but here’s what happened:

1. A $600 advertising charge came through this week that I wasn’t expecting until next week

2. A $1.1K check that I was expecting earlier this week won’t be in until next week at the earliest.

In other words, I relied on money that was outside my control. Not smart. I need to come up with about 1K in cash today, or I won’t have enough to cover payment tomorrow. I put up the last few valuable things I had on craigslist. Some electronics that I used to use in the business. I’ve had one e-mail inquiry so far. At bare minimum I could maybe, maybe squeeze by with just $500 depending on how Wells Fargo handles deposits on Saturdays.

I’ve gotten myself into another hard spot and I’m mad at myself. I was so pissed yesterday I started cursing around my office so loud that I’m sure people on the first floor heard me. I hate this. I hate that I’m a risk taker sometimes, I hate that I just can’t have patience. Even when it comes to my business I see my old habits of pushing the envelope (day trading) and taking risks (investments in the business) when I should be more careful.

I was sitting on the toilet today at the office, and a random thought came into my mind,

“If I suddenly had $10,000 in cash, what would I do with it?”

As my mind starting whirring the possibilities seemed endless…

With 10K I could:

• Implement the marketing plan I put together for one of my businesses. 10K could sustain it for 4 months, and could result in huge gains in revenue, clients, and reoccurring profits
• Avoid my personal bankruptcy filling. Spend 5K negotiating and paying down some personal debt and spending 5K on the business.
• Put it in my savings account@ emigrant direct
• Go on a fancy vacation to Tahiti.

OK, so the last one never really crossed my mind. When my mind had stopped whirring, I realized something that didn’t even cross my mind: depositing the 10K into a trading account. A year ago that’s the only way I would have thought of using a 10K windfall. I would have visualized that 10K turning into 60K (which, I did once in a month in 2006), and then that 60K into 250K and so on and so on. You see how screwed up my thinking was?

Of the options I listed above, with a 10K windfall I would likely choose the 2nd option of splitting it between investing it in my business and using it to avoid the BK.

So, what would you do with $10K?

I can’t ever complain that I have a boring life. Sure, I’m lonely at times, but that is 99% self inflicted. I’m working crazy hours, and have pushed many friends away because I just didn’t want to have to hide what was really going on in my life.

I should be able to change some of that starting next week.

First off, It looks like I’m getting a place to live. Like a real place to sleep, not just a camping pad in my office. Everything is lined up and approved, I just have to have my deposit and cashola ready by this weekend. How tight is it? It’s down to dollars. It may have been wise in terms of cash-flow issues to do another month in the office, but:

1. I’m starting to notice some health issues both emotionally and physically
2. I’ve spent a good deal of time looking at potential places, and the combo of being able to work form the place I’m getting is too good to pass on.
3. Living in your office officially blows.

So I am excited. I’ll be able to relax once I’ve got all my money together to get the place. But I’m still starting to get excited. It’s almost been two months now living in my office.

I’ve managed to lay low the last two months. A good number of people know I’ve been living in my office (I played it off well…), but my employees thankfully never noticed. I’ve never overslept (they come in around 9), and have not seemed to arouse any suspetions of any other tenants in the office. I could probably go another 10 months and no one would no the difference. Of course I would be withering mass of a man, going crazy from white walls and no windows 24 hours a day…but I’m just saying it could probably be done.

Debt Update

I need to do an updated spreadsheet with my current debt levels. I have been paying down a number of my business credit cards, as well as continuing to pay my mother monthly. My personal debts I have not been paying, nor could I with the dismal salary I can afford myself at the moment. Nor should I be if I still plan to file my chapter 7 bk as soon as I have the money for the fee (I do still plan to file, unless my income level changes dramatically in the next 30 days. Which is possible. But not likely)

In the last month or two I’ve noticed a dramatic increase in traffic to this site from people searching “short sale” and or “foreclosure” related terms. Looking at the search cloud image to the right shows this very dramatically.

Short Sale Traffic Surge…

I did a good amount of research before I decided to go forward with my short sale and from the traffic I’m seeing to the blog here, it seems like an increasing number of homeowners are beginning to research as well.

It’s a good and bad thing. Bad that people are upside in their homes (as I was). Good that they are looking to avoid foreclosure by doing a short sale of their home. Good also for the mortgage companies that typically stand to lose much more in a foreclosure then they will by doing a short sale.

When I closed the short sale of my home almost 2 months ago, it was a minor success for me. I avoided foreclosure, and sold a house that I had no way of affording anymore.

So, is a short sale wave coming? I think it is. I think the short sale is and will continue to become a much more common real estate transaction. The combination of bad loans and a declining real estate market has left too many homeowners in a lurch. Hopefully they can afford to downsize from their home, and short selling their home will give them a much better chance of getting an apartment than a foreclosure would. Neither is going to look great, but a short sale at least shows some proactive work on the borrowers side to remedy their situation.

From what I heard from my short sale agent, Greenpoint (the 2nd mortgage on my old house), was a pain in the rear to deal with. Looks like they are the next mortgage company to shutter their doors.

I don’t know what to feel here. 1900 people losing their jobs is not cool. Obviously my one little short sale didn’t make the whole company go under, but I’m sure it didn’t help. It’s a crazy market out there right now…almost makes me glad I can’t afford a place anytime soon.

Almost.

{I wrote this last week when I was in the dumps…}

Most everyone would agree that being in debt just plain sucks. You feel guilt you’ve never experienced before, anxiety that you just can’t shake, and shame that your debt is affecting your lifestyle.

Here are 7 ways I’ve found to deal with the Debt Monster:

1. Get a Debt Buddy

You need at least one person in your life outside your family that you can talk with about your financial situation without shame or judgment. This could be a friend, a counselor, anyone. It’s probably best to find someone in the same income range as yourself so that they can relate to your spending habits even if they can’t relate to your debt. Get a Debt Buddy.

2. Reward Yourself Richly

When you have a good day at work, or tear through your to-do list, reward yourself richly. Yes, richly. Does richly mean expensive? No! Find a low-cost activity or food item (my rich reward is a frosty and large fry from Wendy’s) that is special to you and you can enjoy without guilt. Make sure to only give yourself this reward when you achieve a goal.

3. Shower at the Gym

Get up before work and drag yourself to the gym. Bring your clean clothes and shower at the gym after you work out. It’s a great way to start the day, and showering at the gym forces you to go or smell terrible all day! Also, if you can discipline yourself to exercise, then you can discipline yourself to budget and save.

4. Take an evening nap

After Dinner, take a short 20-40 minute nap. Your brain will love you.

5. Keep a journal about your debt journey

Writing down your goals, thoughts, and even fears can be very therapeutic. You can keep a paper journal, or easily start an online blog at wordpress or blogger. Writing about my overwhelming debt has helped me tremendously in dealing with it, and realizing that I’m not alone (although being 300K in debt and 24, I may be a bit unique).

6. Watch a comedy show

My favorite two shows to make me laugh about my life and debt are: Arrested Development (rich dysfunctional family) and The Office (if only my office were like this show!). Being able to forget your life for 23 minutes and laugh at another’s expense is invaluable in emotionally dealing with your debt.

7. Get Organized and Get Movin’

While most of the above tips are emotional ways to deal with your debt, you don’t want to be doing these steps forever. Make a debt reduction action plan and stick to it. You’ll have to make sacrifices, but the reward of not have the Debt Monster on your back will pay dividends for the rest of your debt free life.

How do you deal with debt?

Are you an exerciser? Do you spend time with your family when your debt is bumming you out? Watch a funny movie? Go shopping? What do you do? If you had debt in the past, but are debt free now, how did you get there?

Wow. I was feeling totally down today, then the last hour happened:

• I passed my background check for the 1 bd place I’m hoping to get (not that I was worried…but still)
• All my Plan B clients received very valuable leads from our services today (great since some are on free trials!)

Now, it’s bad that my mood is so tied to my business. But right now my business is my only chance at getting out of this mess in a timely, like before I’m 50, fashion.

Darn Harry Potter

I finished the 7th Harry Potter book last night (lent from a brother). It was great, but it made me very sad. See when I was having a pretty rough time in life (more rough than my time right now even) I discovered the Harry Potter books. They were a huge comfort to me. I know it sounds silly, being a 18 male and finding comfort in a children’s book, but when your life sucks any healthy escape is like a water to someone dying of thirst. When I was super depressed, the 1st movie was just coming out. I bought tickets a month ahead of time and I crap you not, just looking forward to that movie kept me going during that time in my life. I’ll always have a tender spot in my life for those silly books because of the power they had to wisk me away when I was so down.

So anyway, finishing the last one last night was odd. It made me feel vulnerable and lonely and sad….like I felt at 18.

I think I snapped out of it now after the above great things happening, but I still feel odd. The power of the written word….amazing!