Eric's Credit Community

About me: I am married, and father to 2 little girls. I work full time as an accounting clerk for a company that is employed by the U.S. Government to help military families move around the world. I have been going to school online for 2 years now which I am just finishing my Associates Degree up and have been offered a $2000 scholar ship (GPA 3.83) to continue my education with the University of Phoenix (online) in Feb. to earn my Bachelors in Accounting. My wife has recently returned to work after being a stay at home mom for 5 years.

About our income/expenses: I bring home approximately $1100 every 2 weeks, and my wife's net income is approximately $690 every 2 weeks. Total monthly net income is $3,580.

Rent $650
Util $426 (includes phone, cable, etc.)
Cars & Insurance $855
Gas for Cars $150
Groceries $400 (family of 4)
Stud Loans $0 **Deferred for 2 1/2 years (still in school)**
Wife's Cards $50 (balances are $600, $900)
My Cards $250 (to be paid off with Prosper loan)
Cash Call $211 (Loan taken out to pay for my mother's funeral in 08/06.)
Misc. Household Spending $150 (includes occasional spending like clothes, car maintenance, etc.)

Total $3,142.

Total W/ Prosper Loan of $180/mo instead of Credit Cards ($250) and high interest Cash Call Loan ($211): $2861

While we do have income remaining at the end of the month, we want to pay the cards off NOW so that we can focus on savings and an emergency fund.

About my credit: All of my accounts are current, with not so much as a single 30 day late payment. I believe I am an E due to the number of accounts that I have with balances near their limits. You will see that I have 2 public records - these are both from paid state tax liens. I live in a state that formerly was in the practice of filing a lien for taxes within 10 days of the return being filed. Both were paid promptly.

Purpose of the loan: I am seeking a Prosper loan to pay off all of my credit card balances & the Cashcall loan. I am making payments every month, but after the interest and monthly maintenance fees I make almost no progress. I plan to close out all the accounts that have monthly maintenance fees, and keep only my Capital One card (no fees and better APR than the others) open.

Not only will my monthly payment on this debt be less with the Prosper loan, but I will pay less overall in interest and fees. It will also improve my credit score.

I originally listed for $7,000 to pay off my wife's cards, my cards, and my loan. I realize, though, that asking for such a large amount is not realistic so I'm now asking for enough to cover my accounts.

Why am I a good risk? I have a history of paying my accounts on time, every time. It would cause me more harm than good to change that now especially since I want to buy a home for my family. Even though I am rate capped at 20%, please keep in mind I have 0 current DQ's and 0 DQ's in the past 7 years and in fact never in my life.