Paying off credit cards
| Listing Information | |||
|---|---|---|---|
| Amount: | $20,000.00 | Status: | Loan created |
| Grade: | AA | DTI: | 12% |
| Lender Rate: | 11% | Borrower: | metameme |
| Finished | State: | FL | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Current | Origination Date: | 2008-02-22 | EricsCC ROI: | 9% |
| Status History | |
|---|---|
| Feb 22, 2008 | Current |
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Purpose of loan: This loan will be used to pay down the balance on my credit cards, which is currently at around $23,000. I'm getting married in June and will use our savings from consolidating these debts to help finance the wedding. In addition, my fiancee has some debt of her own that I hope to help her clear up so that we can begin our life together in a positive financial situation. I have calculated that I could pay off the debt in approximately 17 months without help, but some of the credit cards are from a point in my life where I was much more of a risk and carry a high interest rate. I've tried negotiating these rates down but a few of them say they cannot without closing and reopening the card, and the average age of these accounts is valuable to my credit. I expect that a lower interest rate loan, and having one payment instead of three, would assist me in paying these debts down more quickly than I am currently able. Eventually my plan is to pay off our debt completely, and leave revolving credit accounts open but largely unused - I plan to use one card for convenience and pay it in full each month, rotating between cards to keep activity on all of them. After our debt is paid off, I will channel the extra available funds into paying my mortgage early, and into my 401k. My financial situation: My major assets include: - House in Orlando, Florida (value approx 160-200k) - one mortgage of approximately 180k - 2005 Prius hybrid - paid off - Timeshare in Orlando, Florida - paid off - Retirement account, approximately $4000 balance (I started recently). My only liabilities at present are the mortgage, my monthly bills, and approximately 23k in credit card debt. My monthly bills include an apartment which I maintain in Spokane, WA until my fiancee and I can tie up our loose ends and consolidate our lives in one city. I feel that I am a good candidate for this loan because: 1. I do not expect to increase my debt load. Most of the current debt is due to a life change that I chose to pursue, and as such was a once-in-a-lifetime occurrence rather than a continuous pattern of overspending. 2. My income is quite high for my current debt burden. I did not include this on my application, but I recently was notified that I would be receiving a 3.11% raise in salary effective in April, and will be shortly collecting a significant bonus within the next two weeks. My job is stable and is expected to continue to be so for some time to come. 3. I am extremely responsible with money, as evidenced by my credit rating. I am putting away money in savings, paying well over the minimum on my current debt, and still manage to have some discretionary funds available at all times, although I've cut back somewhat on my spending in order to pay my debt down faster and save for the wedding. 4. If anything financially catastrophic were to affect my ability to pay back the loan, I have methods of settling the debt. My assets include a car which is fully paid off and whose Kelley Blue Book suggested retail value is almost exactly the requested amount of this loan. In addition, the principal funds will be applied toward my credit card accounts, which I could potentially tap to assist in repayment. Although I'm not specifically offering the car as collateral for the loan, and would not normally use credit to pay off a loan, I would be able to come up with the necessary funding to pay the loan in full should the urgent need arise for me to do so. 5. This loan will improve my credit-to-debt ratio, which will affect my FICO score favorably. This will assist with my ability to repay by saving me an extraordinary amount of money in any future financial transactions. I am right below the breakpoint of getting some of the |
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