Thursday, September 10, 2009

A lot has happened in the past eight months.

I am still alive, doing well and have been blessed in many ways. My business is doing better than ever. I have been able to settle a few of my delinquent credit cards. My loan modifications are still going on which has saved me thousands because I have not had to make a mortgage payment.

Just a couple of weeks ago, my girlfriend and I went to visit my mother in Sydney, Australia. It felt really good to spend time with my mother, grandmother and the rest of the family. The home I purchased in Sydney for my mother turned out really nice. It is a brand new home with five bedrooms and has a very modern IKEA look to it. Five bedrooms is ridiculous for a single woman, but somehow she manages to furnish every room. I shipped all of her furniture through North American Van Lines out of the Long Beach port. It was cheaper to ship her furniture from here than to purchase all of the same items in Australia.

I've been doing a small amount of traveling. My girlfriend and I have been to Denver, New Orleans and a cruise along the west coast in the past few months.

Considering everything, I cannot complain. Life could be a lot worse. Currently, my focus is on maximizing the potential and profits in my business while implementing systems. I need to find a balance where all of these goals can be accomplished as well as personal time for myself.

Saturday, January 17, 2009

Unsure about my financial future...

I am in over my head in debt. I have been trying to analyze my financials for the past month trying to figure out how I can make it work. My business brings an ample amount of cash flow, but the problem is that I have so much debt. My credit card debt alone is almost $200,000. The minimum payments for my credit cards totals to about $3,000 per month. Adding to this is the negative cash flow on three rental properties I own, an additional $1,300 per month. So, my total is already at $4,300 and this does not even include my personal living expenses!

I did some research on debt counseling/consolidation, but it doesn't seem like the best move for me. These companies require that you stop making payments on your credit cards and instead make an affordable monthly payment to a trust account that they open for you. Once you reach a certain amount, they contact your credit card companies and negotiate a settlement for 60-70% of what your outstanding balance is.

I have also begun to research filing a Chapter 13 bankruptcy. This would eliminate my credit card while allowing me to retain all of my real estate (it's not like there's equity in any of them anyway).

I am currently in the process of loan modifications on two of the properties I own. One loan is with Countrywide and the other with Washington Mutual. The outcome of these loan mods will determine my decision for all of my credit card debt.

On a more positive note, my business is doing well considering the economy and recession.