Sunday, October 02, 2005

Here Is The Embarrassing Situation...

Status: Married
Ages: No way
My income: $84,000
Other half income: $18,500 (he’s in grad school)
Own outright: Dog
Debt: $140,000
401K: $0
IRA: $2,500
Savings: $1000
Stocks: $200
Bonds: $1000
Real Estate: We rent, but also invested in 2 properties, I’ll talk more about this later.
Kids: Ha. Ha, ha. Ha, ha, ha, ha, ha, stop making me laugh – my stomach hurts!

Since the only thing we own outright is the dog, no need to go into any further detail on financial assets. Here is a breakdown on the $140K debt:

Straight Debt:
  • $70K in newly consolidated graduate school student loans @ 3.5% (consolidation interest rates are a weighted average of the old debt).
  • $30K in already consolidated undergraduate school student loans @ 4%.
  • $2K in installment agreement for an expensive vet procedure @ 22.98% – and, the dog didn’t make it.
Debt Associated with an Asset:
  • $18K in to Chrysler Financial @ 12% (don’t ask, I was in no position to negotiate on that particular day). I am way upside down on this deal.
  • $6K remaining to Ford Motor Credit @ 5.9%. Blue book on this vehicle is $11K. Right side up.
  • $6K remaining on land contract. This was a good move. More on this later.
Evil Debt:
  • $2K in current credit card debt at varying levels of interest ranging from 14.98% to 22.98%.
  • $5K in 4-year old delinquent credit card debt, a relic of the disaster that befell us when the dot-com bubble burst.
So there you have it, a pretty picture of major indebtedness, challenged credit, with virtually no retirement assets and no reserves. You wish you were me, don't you? Admit it! You wish you were me!


At 11:25 PM, Blogger mbhunter said...

Hi Prosperette,

Thanks for your e-mail and your link!

Welcome to the Personal Finance blogosphere! Lots of good people here. Your sidebar has good ones. We hope that you stick around a while!

Best wishes!



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