Credit Card, RothIRA, emergency fund
| Listing Information | |||
|---|---|---|---|
| Amount: | $14,000.00 | Status: | Loan created |
| Grade: | AA | DTI: | 10% |
| Lender Rate: | 8% | Borrower: | seabourne |
| Finished | State: | IL | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Current | Origination Date: | 2008-09-26 | EricsCC ROI: | 8% |
| Status History | |
|---|---|
| Sep 26, 2008 | Current |
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Purpose of loan: This loan will be used to pay off about $4000 in credit card debt (current rate: 14.75%) and to finish funding my RothIRA fully for this year. The remainder will be put into an ING savings account as an emergency fund; mine is currently below 3 months expenses and I would rather that not be the case. I will be contributing to that savings account as well and will use it to contribute an additional $5000 to my RothIRA in January. This set of intentions makes this an exceptionally safe loan, as I am able to withdraw Roth contributions without penalty if necessary to pay back the loan, but there is a time window in which to contribute. I could use my current Roth money to pay off the credit card debt, but at this point I'm willing to pay the interest to protect the long-term tax protected earnings. Using the savings account will also reduce the effective rate of interest that I'm paying to hold the money until January. My financial situation: I am a good candidate for this loan because I am working full time as an engineer, and was issued my Professional Engineering License this past summer (it requires an accredited degree, 4 years work, and an 8 hour exam with a lousy pass rate), and have seen my salary increase by about 15% this year, including a promotion since receiving my license. I am under 30, but own I my own home in Chicago, and only owe about two years current salary on the mortgage. I save aggressively and have retirement assets of more than twice my annual income. I have a second job working as a professional sailor on tallships on summer weekends, from which I make about $5k additional income a year, and hope to get my 100 ton Captains license this winter. I have been with my current Engineering firm for over 5 years, and have worked on my current ship in the summers for 4 years, starting the first day it arrived in port. General Monthly Budget: Take Home Pay: 3650 Mortgage/taxes/assessments: 1400 (Mort=30yr fixed, 6.5%, 28yrs remain) Utilities: 200 Food/Drink:400 Gym: 85 Leisure: 600 Transportation: 150 Available for payment/investment/savings: $815/month I have no need of a car - I use the El and take an occasional cab (both included in trans). I live well as far as food and entertainment. Most of this year I have been saving 25-30% of my income to 401k and ESOP accounts, but I'm past the matching levels and close to the annual limit. I can pay off the credit card in the next few months without a loan, but with the stock market down and wanting to fund my Roth sooner rather than later I'm interested in trying Prosper - something that I've looked at and read about over the past couple of years. Please ask any questions you may have - since I am new at this I'm sure that there is useful information that I'm leaving out. |
| Borrower's Other Listings | |||||
|---|---|---|---|---|---|
| 398898 | Credit Card, RothIRA, emergency fund | AA | $15,000 @ 12% | Sep 15, 2008 | Withdrawn |
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