Eric's Credit Community

Hi. I listed on Tzedakah 5 days ago and have come to the decision that my original request for $20K will not be met in the timeframe of 7 days. Many thanks to all the bidders who offered to assist. Very sincerely appreciated. However, in an effort to obtain sufficient funding I thought it best to re-list at a higher interest rate and slightly lower amount. I believe I can still achieve the desired outcome of reducing my credit card debt.

Following is a copy of my original request with the figures altered to reflect my new request. Again, many thanks to all previous bidders.  

I am seeking a $15K loan in order to consolidate some credit card debts and improve my overall credit score. My intention is to refinance my home in 6 months at which time I will naturally pay back the balance owing should this request be successful.I have spent almost $100K renovating and upgrading my home with the intent of refinancing once completed. For that purpose I used my personal funds as well as credit cards usually offering 0% interest for a specified period of time. However, what I didn't allow for was the fact that the higher my credit card debt the lower my score and therefore the higher my mortgage interest rate when I refinance. My mistake.

I don't wish to lock into a 30yr mortgage at a ridiculous rate hence the intent of this loan is to reduce some of the credit card debt over the next 6 months and then refinance my home at an acceptable rate. If you look at my current credit report you will see that although I have many debts I have never never missed a payment.

I will also be receiving a substantial bonus (approx. $15K) from my work in the next few weeks and this will also help reduce the debt. Although my rating is a "C" my payment record is "AAA". I am more than happy to provide whatever information and/or records requested.

My current household monthly income is $8000 after taxes etc. Of this amount, $2500 goes towards the mortgage and approx. $2300 to service the credit card debts which are all nearing their limit. The balance is used for college tuition ($875/month) and normal living expenses. Should I be successful with this request for funding (plus my bonus) my credit card debt will be reduced to less than half which will in turn increase my current credit score from the low 600's to 680+. The difference in a 30 year mortgage refinance is from 8% down to 6.75%, which is quite substantial.

My current mortgage is $395K and a recent bank appraisal is $525K. Once I reduce my credit card debt by half my expectation is that my monthly payments will also reduce from $2300 to $1175. I will service the loan repayment from the $1175 I have gained but I will also increase the minimum credit card payments with the difference in order to further the credit card debt. I hope that makes sense.

Thanks for taking the time to read my application.