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I?m requesting $2500 at 17% (my state's cap) to be used to pay off and close two credit cards as part of a larger plan to get out of debt and recover from past credit mistakes.

Past Credit Problems

My past credit problems began with a series of layoffs in 2000-2001. I work in the computer industry and that was a bad period for us--I was laid off 3 times in 18 months.

While unemployed, I struggled to pay the bills and once my savings were gone I had to prioritize what bills got paid and when. Unfortunately, credit cards were at the bottom of the priority list and I racked up quite a few DQs which negatively impacted my credit. During this time one of my creditors also took me to court, resulting in the PR listed in my credit file.

Current Situation

I've been with my current employer since November of 2001, with yearly raises for the last five years and a promotion two years ago.

I've been working hard for the past five years to improve my credit situation. I currently have 10 cards listed in my file, 5 of which are closed. All payments have been current for several years now; all accounts opened since 2001 have no DQs. The majority of the 7yr DQs listed in my stats should drop off my report within the next 18-24 months.

In the past five years, I have paid down my credit card debt from a high of $19088 to the current total of $8032.

My Prosper credit grade was recently upgraded from HR to E after I disputed some incorrect information included in my file. I believe my credit grade is still low due to high utilization.

Plan for Loan

The $2500 will be used to pay off and close two credit cards, resulting in a reduced interest rate on the balance and the elimination of two annual fees. As my total CC balances go down, I plan to continue paying the same amount toward my debt each month, putting anything in excess of the total minimum payments toward the card with the highest rate. In addition, in January I'll be adding $75 to the amount I'm currently paying each month, increasing the debt paydown "snowball" still further.

With this plan I should have my entire remaining CC debt paid off in 28 months, according to bankrate.com's credit card calculator.

Income and Budget

Current net monthly income of $3078 with fixed monthly expenses of $2810. Beginning in January, my gross monthly income will increase by $92 per month due to cancelling my AFLAC insurance. Estimated effect on net monthly income is an increase of $75 per month.

Please refer to my profile to view a detailed monthly budget with a breakdown of all fixed expenses (both with and without the Prosper loan).

Final Thoughts

I know most lenders will consider this a risky loan due to my credit grade and state rate cap. Please don't let this deter you from at least considering this request. Thank you!