2% DTI needs to pay off tax lien/high interest credit cards
| Listing Information | |||
|---|---|---|---|
| Amount: | $2,800.00 | Status: | Loan created |
| Grade: | C | DTI: | 6% |
| Lender Rate: | 12% | Borrower: | calgal |
| Finished | State: | CA | |
| Funded: | 100% | Group: | Everyday People |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Paid | Origination Date: | 2007-03-29 | EricsCC ROI: | 11% |
| Status History | |
|---|---|
| Mar 29, 2007 | Current |
| Nov 07, 2007 | Payoff in progress |
| Nov 10, 2007 | Paid |
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Dear Lenders: Thank you for considering my application! I hope I'm a good investment for you. Why I am applying for a loan Pay off 2001 state tax lien & two high-interest credit accounts. Tax lien $1319 Credit card $397 (19.24%) Dell credit line $1054 (29.99%) Total loan needed = $2770 Loan request = $2800 ? 1% origination fee of $28 = $2772 to me Credit history I'm rebuilding credit after delinquencies four years ago. Payments since have been on time, in full and my open accounts are in good standing. Lien: In 2001 I worked for myself and prepared my own quarterly tax returns. Moral: hire a tax expert! I discovered the lien 12/06 when I checked my credit reports. I am again working in California and can't chance my bank account and wages being seized. My employer withholdings have been sufficient since 2001 to prevent future tax issues. Delinquencies: Four years ago I was 30 days late on a credit card, 60 days late on a car loan, and late on a sub-prime credit card. I came current on the car, sold it, and paid the loan off entirely. I closed the credit card at my own request and paid off over time with regular monthly payments. The sub-prime card had high late fees, penalties, and a late-pay interest rate bump. After I was late on a couple payments, my payments barely covered the higher interest and fees. The account charged off, the balance was frozen and I paid it down from there. Other derogatory accounts: PG&E: 15.00 charge off 2/02. PG&E claims this is an unpaid final bill when I moved out of state 9/01. I believe it was fully paid. My credit repair plan includes addressing PG&E after clearing the tax lien and high interest cards. Current and revised budgets I'm changing my spending habits to I can improve my cash flow. The first budget is how I typically spent my money; the second budget shows the changes and how it affects my bottom line. Current budget Income after taxes $2013.98 ($1006.99 per paycheck, 1st/15th each month) Bills Rent 550 Phone/broadband for telecommute 110 Cable/utilities 100 (I pay half the bills directly to my housemate; household bills are in her name) Credit card 20 (bal. 397; interest 19.24%) Dell credit line 41 (bal. 1,054; interest 29.99%) Groceries/toiletries 100 Hair salon 60 Eating out 500 Car rentals 120 Entertainment 120 Public transportation 125 Total bills 1846 Total Income 2013.98 Total Bills 1960 Discretionary income 167.98 ***************************************************** Revised budget Income after taxes $2013.98 ($1,006.99 per paycheck, 1st and 15th each month Bills Prosper payment 101.23 Rent 550 Phone/broadband 110 Cable/utilities 100 Food, laundry, toiletries, haircut 400 Car rentals 60 Entertainment 80 Public transportation 125 Total bills 1526.23 Total income 2013.98 Total bills 1526.23 Balance 487.75 Less emergency cushion (100.00) Final discretionary income 387.75 Repayment Early manual payment to cover the 1st payment in case autodraft fails Regular scheduled payments thereafer Ability to repay this loan I moved to California 2006 to take this job, continuing several years working as a copyeditor. The company is growing quickly. Its success relies on keeping experienced copyeditors in-house. I believe my salary and employment are secure. Alternate plans if the loan isn?t funded Minimum payments on the two credit lines; cut back on entertainment, car rentals, and eating out. The lien would clear in about three months. Then bigger credit card payments to clear the credit cards. |
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