Refinance Complete & Credit Cards Paid…

The refinance is complete and the new loan funded. I took the refinance check over to the bank on Tuesday and paid on my CC right away. I got paid yesterday so I scheduled the last of the payoff on my CC for today. The refinance was $1,100 short of completely paying off the CC but since I don’t have a mortgage payment for the month of November, I was able to use my regular mortgage funds to pay off the remaining balance. DONE! I am so excited. I don’t have a lot of reserves but I have enough money to make it through the rest of the month. I have a pretty strict budget going forward so I am going to have to be disciplined from here on out.

My family decided on a grab bag for Christmas so I don’t have to worry about Holiday spending this year. With my sister’s first child due in March 2009, we are all aware of our spending and we would rather buy stuff for the Baby once the time comes.

As for my little car accident, I decided to put in a claim on my insurance to get my car fixed and my garage repaired. The damage to my car was a little more than I thought and since I plan to drive it for many more years, I decided I better take care of it as much as possible. The total end cost will be the $250 deductible. In the meantime, I have to put up the funds and get my garage fixed for $400. My insurance company will reimburse me so long as I keep all of my receipts. I am going to take pictures of all the damage this weekend. I am still embarrassed that I even backed my car into my garage. I mean, WHO DOES THAT???

The only last expense looming is a $260 medical bill which I also have the money to pay. I will probably wait to pay it with my December paycheck since I only get paid once at the end of the month and I haven’t received the bill yet. I am sure the payment terms are Net 30. So I will send a check to pay it off at the end of the month when I get paid.

So, there you have it. I am finally CC free. Now, time to find a better paying job and stick to my budget. Coming soon…

Refinance Complete...

The new loan will fund on Friday and my credit card will be paid off by the end of the month. I had another small accident on Saturday where I accidentally backed into my garage door. That is going to cost me $400 to repair and I still have a $270 medical bill to pay. At the end of this month, I will have sufficient cash flow to 1) pay off my $24,583 credit card balance, 2) pay for the garage repairs and 3) pay the medical bill.

What is helping me is that I do not have to pay a mortgage for November. Once the refinance is over, I will also be able to establish a $1,000 Emergency Fund.

Getting Some Relief…

I am in the process of refinancing my condo for 30-years at 5.875%. I started the process almost a month ago and I have been wavering every since but once my mortgage escrow increased $100 anyway due to higher property taxes, I decided it was the best move.

With the escrow adjustment, my mortgage payment went from $875 to $975. My mortgage will just increase slightly more to $1,045 with the refinance. I am closing the loan on Monday. My condo appraised at $165,000 and I am doing a 75% LTV refinance at $123,750 which will pay off my current $96k mortgage and provide me with roughly $24k to pay off my credit card balance in full by month end. I don't have any plans of relocating or selling my place anytime in the near future.

My student loans begin repayment in January, April and June 2009. It will be the first time in almost 12 years that I don't have credit card debt and God willing, it will be the last time. With the refinance, I will still have roughly $40k in equity in my home and a few months to save an emergency fund before my student loan payments begin.

While some may ask, what are you doing? A portion of my student loan and credit card debt went to pay off a $25k HELOC which at the time had a variable rate of over 10%. The HELOC was the result of an 80/20 home purchase that required no money down in 2003. The truth. I purchased a home that I couldn’t afford at the time and I did not have sufficient reserves. The HELOC was at a low 4% variable rate but once the Fed started increasing rates, the payment on the HELOC became too high. So, I refinanced the balance onto student loans that weren't in repayment and my credit card at a lower fixed 3.99% rate.

I am in a little better spot than most people today in that my property value increased from $129k to $165k, I have a decent paying $67k job and I have excellent credit.

With the refinance, I will be able to start paying on my student loans that are currently capitalizing at least $900 in unpaid interest per month onto my student loan balance. I have a complicated situation but all hope is not lost. It is going to require a lot of discipline and I will also have some reserves soon.

Please keep me in your thoughts. Thanks a lot!

Tight Job Market…

Two Chicago law firms to lay off attorneys and staff. This is going to make it even harder for entry-level attorneys like myself to find positions. There is an oversupply of experienced yet unemployed attorneys here in Chicago.

What Happened...

Credit Cards:

I had some unexpected expenses and start-up costs for my own firm. In order to get the legal experience that I need to break into a law firm environment, I started to do some research and writing for attorneys who own their own firm. They suggested that I start my own firm so that I can seperate my regular income from my law firm income and write off expenses. So several thousand went towards getting a laptop and starting a small firm of my own. Additional expenses that I have incurred on a monthly basis are also for my business so that I can have online access to legal resources and professional liability insurance. I haven't generated enought income to pay back those start up fees. I am still actively looking for a better paying permanant position but as everyone knows, the market is tough. I am paying between $500-$600/month on my credit card which is fixed at 2.99% and 3.99% for the life of the balance. I have only one credit card with a balance.

Student Loans:

My loans are still in forbearance. I just consolidated the totals in the chart. Before I had $10,000 there but that was just my goal payoff for the year. Starting in January, I will beging some type of repayment on my student loans but I am not sure how much. Things are really tight.

Charts...

See the charts to the right. Need I say more.

Short Update...

I am still alive. My personal tank of energy completely ran out so I needed to take a break. Everything with the new job is going well. I am still looking to land with a firm by next year but the experience I am gaining is invaluable.

The finances are still struggling but I am making the best of it. The next few months should show some significant improvement so I am happy about that.

Hope all is well with everyone.

Update on Chitown…

My new job is going well. Today makes 2 weeks. It’s both challenging and interesting and the days move by really quickly which is a definite plus. I have been much busier than usual so I don’t have as much internet time.

My debt refinance is complete, I paid my parents back in full, I have a plan going forward and I am doing well with my spending. In the next week, I will post the final damage, the plan going forward and I will begin posting a little more regularly as I get back into the swing of things.

Thanks for keeping up with me guys. =)

New Job...

I start my new job tomorrow at the Bank. My new salary kicks in at the end of the month since I am on monthly pay.

I decided to refi all of my credit card debt into one balance fixed at 3.99% for the life of the loan. Instead of 36 months, it will take me 48 months but I can now attack my student loan balances. The consolidation will be complete by the end of the month and I also made sure that I will be able to pay my parents back in full by the end of the month, if not by the end of this week.

Hang in there with me guys. At the end of the month, the picture will be bleak but from here on out, it should finally improve each month. No more catching up, just getting ahead.

Thanks for all of your support, comments and encouragement.

Debt Refinance/ Balance Transfer…

I am so tired of catching up!!! I currently have two credit cards with a combined balance of $9,300, $2,400 and $6,900.

The $6,900 balance is the remaining balance on a $25,800, 20% second mortgage resulting from my 80/20 home purchase 5 years ago. The current rate on this credit card balance is 3.99% fixed for the life of the loan. I have been paying $225/month to have the balance paid off in 3 years by 12/2010.

The $2,400 balance is the result of spending in March 2008. Thus far, I have been fortunate to be able to pay off the balance on my revolving card in full each month but there is no way that I will be able to pay this balance off by the end of the month.

My new $67,000 salary will not kick in until May 1 and will be first reflected on my paycheck at the end of May. Until then, I am in a cash flow crunch. I can continue to find ways to pay off the $2,300 balance or I can refinance the balances together and increase my monthly payment from $225/month to $250/month and have it repaid within the same 3-year timeframe. The payment will only increase to $250/month because I will pay down the balance by $800 within the next month with my tax rebate check and my regular monthly payment.

I just took a look and my credit card company is offering a 3.99% fixed rate for the life of the loan. For simplicity purposes, I am thinking about refinancing the balances together at the 3.99% rate and increasing my payment to $250/month. I can keep the balances separate but I like the idea of paying just one company, once a month.

I am just tired of being behind each month. I feel like if I refinance the balances together, then I can finally start attacking my debt in an orderly fashion, including my student loan interest which is accumulating at an unbelievable pace. So far, each month I have been so behind that any extra cash flow goes towards paying off my revolving balance in full versus have a balanced plan towards paying off revolving debt and attacking my student loans.

With the balance transfer, I would refinance my credit card debt to 3.99% fixed for the life of the loan, pay off my parents in full and finally be able to completely move to an all cash/debit system so that I can completely eliminate credit card debt from my life within 3 years.

March 2008 Goals in Review…

Pay off Revolving Credit Card Balance with Tax Return: $2,800

I am in a serious cash crunch to say the least and I have had to pay for a number of unexpected expenses including insurance deductibles and required minimum continuing education. I paid off the previous month’s balance of $2,700 in full but I have a new $2,300 balance to pay off for March. Don’t ask. I don’t know exactly how I am going to pay that balance off in full.

Pay Parents Back with Tax Return: $600

I decided (with my parent’s permission) to pay them back $100 per month. I am going to try to accelerate that payment but I already paid them back $100 in March and I gave my mom a $100 check last weekend for April. They really don’t’ care but it matters to me. I may have enough money in the coffers to pay them back by the end of the month.

Land a New Job and Higher Salary: Min $90k

I landed a new job but not with the $90k salary. I have a new job that I will be started on April 16th with a salary of $67k, up from $55k. I am still looking and posting for more positions at a higher salary. I am hoping to land another position by the end of the summer. This new job is still a step in the right direction and will ease my cash flow crunch.

Update…

There hasn’t been much to report as of late. I just got good news that a friend from law school landed a job at a mid-size firm in Chicago and I am so happy for him. I’m a little jealous too because he is in the Firm’s Restructuring Group which is the type of law that I want to practice. I am hoping to make the transition to a Firm by year end.

I am working on a plan to pay down debt over the next few months. My goal is to pay down $5k in loans this year and this is a lofty goal considering my lower income level. Despite accepting a job here at the Bank, I decided to send out my info anyway and apply for jobs in hopes of landing a higher salary sooner rather than later. I also want to keep my interviewing skills fresh.

That’s about it. I should be posting my new budget soon and my monthly report for March. My first day in the new position is April 16th but I’m not sure when my new salary will go into effect since I am paid just once at the end of the month.

Job Offer…

I received and accepted a job offer from the Bank. I will be moving into the position within the next 30 days. I am excited and a little nervous. The job definitely did not come with the salary I was hoping for but I did receive a $12k increase which is going to help out a lot. Additionally, sometimes you need to force change in order to get your career moving in the right direction. I have been working in the same position since graduating from undergrad 8 years ago so I need something else on my resume. I got too comfortable so I am taking this position to force change on myself, to learn new skills and get more experience. I am still looking to move into a Firm position within the next 12 months so this is hopefully just a stepping stone on my way to practicing law.

February 2008 Financial Review…

In February, my private loans capitalized so there was a huge increase in my student loan balance. All the principal and accumulated interest got rolled into a new loan balance on 8 different loans. My car if finally depreciating a little quicker and my 401k balance held relatively stable despite huge fluctuations during the month. Liquidity continues to be an issue as I don’t have any huge reserves.

Credit Scores for February

Transunion: 750
Equifax: 730
Experian: 777

March 2008 Goals…

• Pay off Revolving Credit Card Balance with Tax Return: $2,800



• Pay Parents Back with Tax Return: $600



• Land a New Job and Higher Salary: Min $90k

February 2008 Review…

Move to an all cash/debit system…

Not yet. I don’t foresee this happening until I land a new law position and until I pay off my credit card balance in full which should be this month.

Apply for law jobs…

I have all of my cover letters completed and my resume, writing sample and transcript copied but I haven’t sent them out. My first preference is the position I interviewed for last week. When/If I get that position, I can save the copies for later or send them out in the month of March is necessary.

File Tax Return…

Done. I filed my tax return over the weekend and should receive a refund in about 10-12 days electronically. The total for fed and state is about $3,300. The refund will go to pay off my accumulating credit card balance in full and repay my parents back for the help they gave me with my car/home repairs.

Thoughts on Second Interview…

The second interview yesterday went very well and I believe that I will get an offer. The good thing is that the Bank is looking to hire 3 Consultants in that area so my chances improve significantly. This would be a great move for me in terms of moving my career along.

I had a great day yesterday starting out with the good interview and followed up with the last Black History Event for the month at the Bank. There was a ceremony where educational and career achievements for African American workers at the Bank were recognized and celebrated. I got recognized for getting my law degree and passing the bar exam.

At the event, I was able to network and talk to a lot of people including the CEO of the bank (I had to pinch myself) and several other member of the Executive team. It was such a tremendous opportunity and one of the reasons why I love working for my Bank in particular. Where I work, we are a large regional bank with a close feel that I don’t think you get at other larger international banks. This is just one of the many reasons why I want to stay there because I can see myself getting the opportunity to advance. It amazes me also how much more comfortable I am with networking and meeting people. Two years ago, I would have broken into a cold sweat and quickly walked from the room hoping nobody noticed.

I will keep you posted on how things turn out. When all goes well, I should be transitioning from my position by the end of March. Either way, I feel like things will be getting better for me and soon.

Second Interview…

I just got a call from HR and I made it to the second round of interviews for the position at the Bank. This is excellent and welcome news especially since it’s my hope that this job will open doors for me in the restructuring / bankruptcy area of the law in the future.

I will keep you posted on how things go but the position will earn me no less than $90k/ year which will be a significant boost in income from my current $55k salary.

On a side note, my current manager is making me give up my flex schedule now that law school is over. While I knew it was coming, it is and was my hope that I would land a different position before having to return to a full five day workweek. I have the 4-day schedule for another month so I am hoping to make my transition to the new position within that timeframe. Besides, we’ve been so busy that most weeks, I end up working 5 days anyway and working late.

I’m Back…

Sorry for the lack of posting. I’ve been really sick with a sinus infection and I am on vacation this week. A lot has happened recently. For one, the interview went well and I am waiting to see if I get a call back interview. The HR representative spoke with the hiring manager and he was impressed with my interview so my fingers are crossed that I will land in the second round.

I went to the doctor today because my throat has been sore for 8 days now despite the antibiotics. Of course since I was going to the doctor, I automatically started feeling better (why does that happen?). One thing that wasn’t better is that my chest was still very congested and I would get winded very easily so she prescribed a different inhaler for my asthma so that my chest can clear up. Hopefully, I will be in tip top shape by next week.

I got into a car accident this morning on the way to the doctor. I was on the expressway (Chicago’s famous Dan Ryan) and a car in front of me thought he could cut into the next lane but couldn’t. So, he played car hopscotch and jumped right back into my lane and when I slowed down, the guy behind me rear-ended my car. I had to wait for the state police but despite the large impact, the damage is minimal.

On Saturday, my car started making the worst grinding noise and I knew something was wrong with the brakes. I was right. On Monday, I took my car in and I needed new brakes. That was $280.00

So, my luck hasn’t been so good lately in the financial arena and I am financing everything with my credit card which will have to be repaid with my tax return. I am looking to file my taxes by the end of next week. With everything that has happened to me in the last few months, I am trying to keep a smile on my face, think optimistically and believe that good things to come are right around the corner.

Charitable Donation…

I made a $35 donation to SOS Children's Villages today as part of Wooly Woman’s challenge over at Clawing Our Way. I have a $500 charitable goal for the year and I also make a recurring monthly donation of $35 to World Vision.

If you can make a donation to SOS Children's Village, please do and let Wooly Woman know so she can add the donation to the final tally. Let's give from the heart and help others less forunate. Despite my debt load, I am truly blessed.