Expecting a baby - need to consolidate high interest credit
| Listing Information | |||
|---|---|---|---|
| Amount: | $19,000.00 | Status: | Loan created |
| Grade: | AA | DTI: | 40% |
| Lender Rate: | 11% | Borrower: | hurlpe |
| Finished | State: | IL | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Current | Origination Date: | 2007-11-26 | EricsCC ROI: | 9% |
| Status History | |
|---|---|
| Nov 23, 2007 | Current |
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This is a re-listing. Despite a late push at the end, our last listing fell a little short. Thanks to all who bid. This time, I lowered the loan amount and raised the interest rate slightly to see if we can get this loan funded. This will still make a nice dent in the plan we want to execute. Purpose of loan: After 9 years of marriage, we found out in September that we are expecting a baby in May 2008. This came as a surprise to us as we had not been trying. We had plans of one day starting a family but were waiting to get our finances in order first. Over the years we had accumulated some debt due to: - not being able to sell a house for 18 months after a relocation; we had to borrow an additional $30K to pay off the mortgage while racking up credit card balances. - expensive hobbies such as motorcycling (chrome is expensive) - lack of oversight of our finances since we made good money Since we don't have family in the area (we are transplants) to help with child care, it is our desire to be in a situation where my wife does not have to work full time. We are working on a debt reduction plan so that we will be able to manage our debt payments with just my income. By rolling our debt into a fixed installment loan with a modest interest rate, we will have more control over our cash flow and when we will be debt free. My financial situation: Since September we have had a wake up call. We put all three of our motorcycles up for sale and just completed the sale of one of them. We are also unloading motorcycle parts on ebay for extra money. We sold our gas-guzzling SUV to CarMax and bought a 2002 Nissan Sentra. This saves us about $700 a month with car payment and gas. We have paid off one high balance ($36K), high interest (24.99%) credit card by taking a loan on our 401K and using the proceeds from the motorcycle sale. We have a fixed rate, low interest 30 year mortgage. We also have a Home Equity Line of credit that we have already used to pay off some debts. We would try to re-fi, but the market is bad and I am not sure the appraisal would be high enough right now. We have made significant improvements to our cash flow and DTI that are not reflected in the reported DTI since these occurred in the last 30 days. We are still expecting year end bonuses to come through and the sale of the other 2 motorcycles will yield some profit. We are currently paying an extra $3000 a month to credit cards to get the balances down - we are doing this by tightening our budget. So between that income plus this loan, we will essentially be credit card free by Mar 2008. What debts will remain are car loan ($200/mth), personal loan ($225/mth), Home Eq LOC ($250/mth) and this loan. As you can see from my credit score, my credit is great. My wife's score is an A. The net income below is for me. My wife also currently contributes $3600 per month from her full time job. The expenses are our shared expenses. Monthly net income: $ 5,200. Monthly expenses: Housing: $ 1,760 Insurance: $ 100 Car expenses: $200 (gas) Utilities: $ 300 Phone, cable, internet: $ 200 Food, entertainment: $ 500 Clothing, household expenses $ 500 Credit cards and other loans: $ 1,500 Other expenses: $ We will be making additional cuts in our budget to bring our expenses within my income alone. |
| Borrower's Other Listings | |||||
|---|---|---|---|---|---|
| 225210 | Expecting a baby - need to consolidate high interest credit | AA | $25,000 @ 13% | Nov 02, 2007 | Expired |
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