Eric's Credit Community

Quick Summary: Good credit, no history of financial trouble, high rate of return.

Our Story:
This loan will be used as a cushion to cover expenses until a note matures in May 2009, releasing funds in the amount of $1.4M earned from the sale of my business in 2006.

Our financial situation is stable, however we are planning for an immenant event which will create a temporary cash crunch - we're having a second child in February. We will need to cover some increased expenses and my wife's salary for up to two months.

I feel the need to explain the extraordinarly high "revolving debt" and percentage of it's use listed above. We have two HELOC loans which represent all but $4,000 of this debt, we otherwise have very little revolving debt. The original "plan" was to sell the rental property, eliminating $190k of this debt and then increasing our primary HELOC if needed to cover this short term cash flow problem. The plan went bad when the real estate market changed, effectively erasing the equity in our rental property making it prohibitively expensive in the short term to sell the rental at this time.

I intend to pay the minimum amount due monthly on this loan until June 2009 when the note is released, at which time we will pay the prosper loan in full.

Monthly Net Income: $22,300
$ 9,000 his net salary
$11,000 her net salary
$ 2,300 rental income

Additional Income:
$6,000 monthly interest income on investment, not included in budget because funds are not liquid until 2009

Monthly Expenses: $18,500
living expenses:
$6,400 mortgage, primary residence
$1,450 mortgage, rental property
$1,200 groceries
$1,100 child care
$1,000 utilities - gas, electric, telephone, catv
$1,000 auto expenses - fuel, insurance, maintenance, tolls and parking
$1,000 personal expenses - clothing, medical, irregular expenses etc...
$1,000 property taxes, primary residence - paid twice per year, budget monthly
$ 500 property taxes, rental - paid twice per year, budget monthly

debt:
$1,300 HELOC, primary residence ($200k @ 6.5%)
$1,100 HELOC, rental property ($192k @ 6.0%)
$ 550 auto loan ($25k balance @ 5.75%)
$ 650 auto loan ($22k balance @ 6.75%)
$ 250 store credit card ($4K @ 11%)

remaining cash flow to cover this loan: $3,800