Eric's Credit Community

My family consists of myself (27), my husband (29), which we have been married for almost eight years and two children ages 4yrs old & 2 yrs old. I have 1 potentially negative account on my credit report which is a cavalier telephone account in the amount of $90, which was included in my bankruptcy on Oct. 9th 2005. I am in the process of disputing this item for the second time. I have 2 public records on my credit report which are bankruptcies, the 1st was filed in 2001 and was dismissed because we had a friend prepare the documents for us, but she did not pay the filing fees that we gave her the money for. The 2nd is an actual attorney filed chapter 7 bankruptcy filed in Oct. 2005, which has been DISCHARGED on Feb. 10, 2006. I also have 3 Payday loans totaling $900 ($1169 with the finance charges), and credit cards (myself & my husband) with balances totaling $2150.  As far as the inquiries 12 of them were us trying to finance a car and having our credit pulled by a number of dealers unknowing that this would have a huge impact on our credit.

My husband recently purchased a more reliable used vehicle on October 10th of this year and traded in our old vehicle in which our credit report shows two auto loans, when one of those loans has not been reported paid off as of yet. This is what is causing my DTI to be so high.

I am requesting a loan of $6001.00 @ 23% interest, monthly payment $232.00.

PURPOSE: To pay off the following debts: Payday Loans- $1169.00, All Credit Cards- $2150.00, Furniture- $2600.00 ($228.00 per month)

REPAYMENT: We will pay this loan on time on the due date that is set by Prosper.

INCOME (After Taxes):  Myself- $1411.00 paid on 15th & last day of the month, Husband- $650.00 paid weekly (plus overtime) = $5422.00 total monthly income.

MY HUSBANDS INCOME WAS NOT DISCLOSED AT THE TIME OF PROSPER APPLICATION, WHICH HAS ALSO PLAYED A PART IN MY HIGH DTI.

Current Expenses:
Rent $939                                            
Utilities $500
Car 1 $645
Car 2 $525
Credit Cards $170
Auto ins. $201
Payday Loan $538
 Food/Gas/etc $600
Furniture $228
Daycare $920
Expenses v remaining: $5266/$156

Expenses w/ Prosper Loan:
Rent $939
Utilities $500
Car 1 $645
 Car 2 $525  
Prosper $232  
Auto Ins. $201 
Food/Gas $600
Daycare $920
Expenses v remaining: $4562/$860

As you can see cutting out the unnecessary debt in our budget, we save an extra $704 per month, and we could potentially start a savings account for a home of our own.

We got into this situation because we did not manage our funds properly, we were careless about the decisions that we made, and we were uneducated about what good credit and a good budget could do for our family.

Now is the time to make things happen.

Thank You For Your Time
SH