Eric's Credit Community

Purpose of loan:
I'm a hard working individual looking to improve my credit and my life. I am looking to reduce and eventually eliminate my debt. My debt has been manageable for many years, and I have never felt the need to seek help. I was always able to transfer balances to get better rates and easily pay at least the minimum amounts. I had some major debt buildup about three years ago when dealing with a divorce. This affected the cost of my living situation and raised my debt.

These are the cards, and their current balances:
card 1: $22,942.57 @ 29.99%
card 2: $22,766.10 @ 13.24%
card 3: $3,782.07 @ 12.99
card 4: $14,217.79 @ 9.90%

I have 2 additional cards with relatively small balances (~1.5K) that have 0.0% interest until 2008.

I plan on consolidating mainly Card 1 at a lower rate with this Prosper loan. My parents are also helping me with the debt on card 1, but I will still need $6000 to cover the remainder.

Here are my minimum payments (approx):
Card 1: Approx $220 per month (to my parents) plus my prosper payment
Card 2: $400
Card 3: $110
Card 4: $320
Others: $60

Explanation of one single high interest rate:
I looked to a credit counseling service who said they would negotiate with my card companies to lower my interest rates and monthly payments. This was about the time I was looking for a new job (4 mo ago). Once I received my new job and salary higher than I expected, I decided that I did not want to continue with the debt service. Subsequently, one of my credit cards was canceled and the rate was set very high. I called several times, and they insisted there was "nothing they could do", since I had canceled my debt service. This left me with a high balance, a high interest rate and very high minimum payments.

Explanation of the 6 inquiries in my credit:
I had applied for several new credit cards and/or loans to transfer a balance and pay down the one card with the high interest rate.

My financial situation:
I have a very stable job and make good money. I work at one of the largest software (database) companies in the Bay Area. I have worked here for 4 months, but came here from a major Bay Area acconting firm where I worked for several years. I work as a Sarbanes-Oxley Compliance manager. I also have a large collection of music collectibles, which I have been selling on Ebay for an average of $200-300 per month.

Monthly income:
Monthly gross income: $6,970
Monthly net income: $4300 (Also, I have a bonus plan, but it is discretionary)

Monthly expenses:
Housing: $ 1050 (Renting home)
Car expenses: $ 353
Insurance: $ 158
Utilities: $ 225 (split between 2 people)
Phone, cable, internet: $ 180
Food, entertainment: $ 200
Clothing, household expenses $ 155
Child Support: $800
Subtotal of Monthly Expenses: $3121
Cash flow: Income $4300 (+$200 Ebay sales) - Expenses $3171 = $1379 from my base salary.

A little about me: I have 2 beautiful children, a boy (7) and a girl (4). I?m doing this as much for them as for me. I also have a girlfriend of 3+ years who I hope to marry once my financial situation is sorted out.

By getting a Prosper loan I expect my minimum payments to be cut substantially.  This will allow me to put easily make payments toward my prosper loan and allow me some freedom from this debt. I hope to eventually become a lender for Prosper and help others in similar situations.