Eric's Credit Community

ABOUT ME AND THE REASON FOR MY (E) RATING:
I made a mistake about a year ago and signed up with a debt settlement company. Not only did they not help me settle any of my debts, they also got about $1000 in ?fees? from me. Because of them, my credit took a turn for the worse. I now have several delinquencies thanks to them not helping me. I have learned from this mistake and am trying to fix my credit now. I have moved from the HR to E status and I am working on getting up to a B rating!

MY INCOME:
MONTHLY NET PAY: $3,672.69 (including my husband?s monthly net income)

MONTHLY BILLS:
Mortgage $812
Auto Loan $389
Auto Ins $83
Auto Misc $40
Electric $110 (avg)
Water $20 (avg)
Phone $75 (includes internet service)
DIRECTV $65
Cell Phone $100 (for both of us)
Food $200 (monthly groceries)
Gas $250 (avg)
Life Ins. $38
Personal loan $90 ($630 balance))
Personal loan $110 ($1090 balance)
Personal loan $130 ($2070 balance)
Wal-Mart Credit Card $25 ($735 balance)
Capital One Credit Card $101 ($549 balance)
Citibank Visa $50 ($735 balance)
Medical bills $180 ($763 balance)
Payday loan fees $300 ($1000 in payday loans plus the fees) (PAY OFF WITH PROSPER LOAN)
Misc. $100 (Clothes, etc. for both of us)

MONTHLY LIABILITIES: $3,268.00

MONTHLY EXCESS INCOME: $404.39

I also plan to set aside $100 a month from here on out so that I will have an emergency fund in case something unplanned happens.

REASON FOR PROSPER LOAN:
With a $1000 prosper loan, we would have about a $35 per month payment. This loan would be used to pay off payday loans. This results in a POSITIVE CASH FLOW of $265 a month! I will use this extra income created from this prosper loan to pay down my other debts. In addition, I could set aside a little more for emergencies as well.

SAVINGS BY OBTAINING A PROSPER LOAN: $265 (monthly savings!)
MONTHLY EXCESS INCOME WITH A PROSPER LOAN: $669.39

PERSONAL COMMENTS:
I am working on repairing my credit. I have learned from my mistakes. I am determined to pay this loan back on time so that it will help me fix my credit. By setting aside some funds for emergencies, this will help me when something unplanned happens. I am reading all the forums and learning all I can to help myself recover from this situation.