RELIST: Paying Off Credit Card Debt / Family Emergency
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|Funded:||100%||Group:||High Risks that should not be|
|Loan Status:||Paid||Origination Date:||2007-05-21||EricsCC ROI:||14%|
|May 19, 2007||Current|
|Nov 01, 2008||Payoff in progress|
|Nov 06, 2008||Paid|
I withdrew my original listing to join a group that will give me a better chance of getting funded.
I am a married, 23 year old Accountant with a stable job where I have been for one year.
PURPOSE OF LOAN:
I used my credit cards in college as a means of survival. After I graduated, I got married and moved out of state. My husband and I had a difficult time securing jobs so we lived off the credit cards for a period of time. After 10 months we realized that moving back to California would be better for us, financially, so I took out a loan to move back. The majority of the Prosper loan will be used to pay off my high interest credit cards. Those cards have a total balance of $3966, with interest rates in the 20-26% range. We have one other card, with a lower rate, which we will not pay off with this loan.
A small portion of this loan will be used to fund a plane ticket for my husband to go to his dad?s forthcoming funeral. The ticket price could be anywhere from $500-900 as he will have to get it on short notice.
MY CREDIT RATING:
I have no delinquencies, and have never been late. My credit score is low because I have too many open revolving credit accounts that are near their max. We were making the minimum payments on these cards for a very long time, but it?s quite obvious that these payments don?t even cover the finance charges at times. As of now, I typically pay between $50-80 (each) on these cards.
My monthly net salary is $2,600. My husband?s monthly net income is about $2,000. We combine all our household income and pay all our expenses together.
We will be paying off four cards with this loan, with payments that average about $260 total. I have not included those payments in the list below, since they will no longer be necessary after we get this loan.
Ongoing monthly expenses
* Rent - $1,320
* Car Payment - $440 (for another 54 months)
* Car Insurance - $200 (for 8 months of the year ? 2 vehicles)
* Gas/Vehicle Maintenance - $300 (currently about $3.50 a gallon; expense is mainly for commuting)
* Food/Entertainment - $450
* Utilities - $200
* Phone, Cable, Internet - $215
* Clothing, Medical, Household Expenses - $200
* Remaining Credit Card - $65
* Flex Loan - $150 ($4,500 outstanding at 13.75%)
* Spouse?s Student Loan Payment - $105
The total of these expenses that will remain after we get the loan is $3645.
PAYING OFF THE LOAN:
My cushion before the Prosper loan is about $695/month. With the payments on these four cards gone, that will increase to about $955, minus about $160 for this loan. Obviously, our monthly cash cushion covers this payment many times over. I was very conservative in my estimates, and some may even be too high. I have never had problems paying my bills; I just want this opportunity to get smart with my money. After I pay off the 4 credit cards, I will cut them up, but keep the accounts open to help raise my credit score. My ultimate goal is to get a good credit rating so buying a home in a couple years won?t seem so impossible.
Thank you for taking the time to look at my listing!
|Borrower's Other Listings|
|134591||Paying off Credit Cards / Unexpected Family Tragedy||D||$6,000 @ 18%||May 08, 2007||Withdrawn|
|134719||Paying off Credit Card Debt / Unexpected Family Tragedy||D||$6,000 @ 20%||May 08, 2007||Withdrawn|