Eric's Credit Community

DTI is incorrect - does not account spouse income - accounts being paid and closed.

My spouse (48) & I (44) are seeking help to get financial footing back on track. Rough 2006 - both laid-off (me?Jan.?06, off work 5 mos. & spouse-April?06, off work 9 mos) - turned lives upside down. Steadily employed again in fields worked in for years (me-Human Resources?current 6 mos., career 10+ yrs and spouse-Constr.?current 5 mos., career 20+ years).

Started as HR ? now D. Score due to ?06 lay-offs & maxing cc?s to make ends meet. We are making the maximum effort and are serious about getting on top of finances.

Income $63k+ (me - $38,500/spouse $24,960), Net $4,268/mo. I have guar.min. 10% increase at co?s FY-7/07 adding $200/mo net. Home equity $15k+, apprs $145k-mort.$127k, 3 vehicles pd. off, $20k in mutual fund-cannot touch w/o penalties.

Expenses:
Mortgage - $1100
Car - $636
Household (electric, water, phone, DirecTV) - $400(decreasing 10% - extra movie channels ($12)and disc. DSL- ($35) comp. died).
Ins. (house/cars) - $236
Prop. Tax: $170
Food - $240
Gas for autos - $200
Pers.Ln @ local bank(14%) pd.in 1.5 yrs. - $175
Credit Accts - $710
Total Expenses: $3,867.00

Prosper Loan will pay:
Cap 1?$2350(28.15%), Cap 1-$580(24.24%), Chase - $250(29.99%), Inc.Tax-$800, house $1130, car $1,272 -- had to use $ on septic system that crashed, and pay down 2 cc?s by 10%--HsehldFin-$670 ($6700@29%) & Disc-$750 ($7500@23%). Balance will give breathing room in case of other unexpected things cropping up ? if find all is OK, especially after receiving salary increase, then will put the $ back towards Prosper loan.

With loan:
Household: $355
Credit Accounts - $395
Prosper loan - $350 (or < depend on final %)
Total Expenses: 3,857.00
Net after - $411 (July-$611)

Prosper ln will eliminate some cc?s, others under max & get int. reduced, bring usage ratio down to better score and jumpstart us on road to being cc free in 4 yrs. or less. Rather pay lenders on Prosper fixed int and pay debt off, than continue to pay cc?s & have revolving int continuously. Situation in ?06 was hard and we are striving to get our lives back. We greatly appreciate your consideration and support in accomplishing our goal.