Eric's Credit Community

I'm currently in the process of getting a divorce from my marriage of 7 years.  It will hopefully be finalized by the middle of November.  My (soon to be ex) wife and I have amicably split our financial responsibilities.  As part of that I was forced to refinance our house to put the loan exclusively in my name, and because of all our combined debt I wasn't able to get a very favorable rate and my payments ended up much higher than expected.  Also as part of that she let me keep my truck which is financed in both our names.  The problem I've run in to now is that I was recently laid off from my job and though I am working now I haven't been able to find work paying what I was making before.  I'm now looking forward and what do I see?  A considerable income deficit in the coming months...

Below is a synopsis of my financials.  These figures are estimated a little higher than actual just to make sure I?m giving myself a little breathing room on the accuracy.

Net monthly income (salary): 3100
Income from renter: 1300
Total monthly income: 4300

Mortgages:  2300/mo
Utilities: 400/mo (approx)
Food/Gas: 400/mo (approx)
Total household expenses: 3100/mo

Truck payment: 380/mo (will be sold)
Truck insurance: 215/mo (goes away)
Motorcycle 1 payment: 205/mo (will be sold)
Motorcycle 2 payment: 250/mo (keeping, primary transportation)
Insurance for both MC?s:  90/mo (will be reduced)
Total vehicle expenses:  1140/mo

All credit card payments (minimums): 300/mo (will be reduced)

Total of all bills:  4540/mo
Income deficit: -240/mo

After the loan is funded the $2000 will immediately be applied to the truck payment and the truck will be sold (already have offers on the table).  $3000 will immediately be applied to the loan on motorcycle 1, and it will also be sold in short order (market here is hot, even in winter).  The remaining $2500 will be applied toward one or more credit cards to pay down balances and reduce monthly payments.  Below is the revised financial statement with the proposed changes made:

Food/Gas: 300/mo

Motorcycle 2 payment: 250/mo
Insurance for motorcycle: 50/mo
Total vehicle expenses: 300/mo

All credit card payments (minimums): 250/mo
Prosper.com loan: 300/mo

Total of all bills: 3850/mo
Income surplus: 450/mo

As you can see this loan would turn a bad situation in to a manageable one.  The total swing in expenses is approximately 690 with all factors considered.  Please keep in mind that I have ZERO delinquencies on my credit history and regardless of whether this loan funds or not it?ll stay that way.  I?ll get a second job if I have to, but this seems like a ?smarter? option.  Also bear in mind that my DTI is currently based mostly on the two loans I will be paying off.  More than half of my debt is wrapped in those two items.  My credit rating will also likely rise dramatically, and it may be possible for me to reach as high as a low ?A? rating within a couple months.  And my final argument in my ?defense,? the 35 accounts listed are open AND closed accounts dating back to 1998.  Store credit, lost/stolen credit cards, and re-issues due to account upgrades are ALL listed in there.  My current open accounts list includes 8 accounts including one ?shared? credit card with my ex that I am paying off.