Debt Costs Too Much - Simple Life Needed

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Listing Information
Amount: $6,000.00 Status: Loan created
Grade: HR DTI: 23%
Lender Rate: 20% Borrower: jwilde
Time Left: Finished State: CA
Funded: 100% Group: (No Group)
Loan Information
Loan Status: Current Origination Date: 2006-12-22 EricsCC ROI: 14%
Status History
Dec 21, 2006 Current

I'm a recent college graduate that just learned the hard way that life doesn't always goes smoothly.

After working hard; taking 22 units my final semester of college and working two jobs (40 hours + 20 hours a week). I found myself with a bachelor's degree and unemployed. I mounted over $8k in debt in my six months of unemployment and are now making it my goal to be debt free in 2007. I used to have a fairly decent credit rating of 680ish, but since the cards were maxxed out, it's gone in the toilet at 551.

I finally found a great stable job and moved in with my parents to reduce expenses, so I don't pay rent, but I do help with utilities.

My current budget:
Income (net):  $2400 monthly
Expenses:    
  • Gas          $150
  • Utilities     $100
  • Phone       $40
  • Car           $350
  • Savings     $200
  • Food         $120
  • Medical     $200
  • 401k         $300


and currently I'm using about $1000 a month to paydown my (formerly) $13k debt, which is now $8k, but the debt is on 3 different cards with almost 30%APR each.

I am currently making $2400 net a month. In January I will be receiving a raise that will increase my income to $2600 net a month.

I have three credit cards:
Credit card 1: $5k
Credit card 2: $2k
Credit card 3: $1k

I plan on paying down these all of with this loan. I have cut them all up. I plan on paying this loan back early, as well putting away money on a monthly basis in my high interest ING account.


Cutting out waste:
  • I've taken steps to cut out all unneeded expenses. No more clothing, electronics, eating out (luxuries)
  • I''ve paid down the debt $1k a month for the past few months. All credit cards have been cut up and nothing has been charged to them since.
  • I've moved back to my parents, eliminating $700 in rent a month. I do not pay rent at my parents, but I chip in with utilities & food up to $100 a month
  • I've given myself a "cash allowance" of $30 a week for minor incidentals, anything left over from the week goes back into savings.

Delinquency:
My one delinquency is from my Macy's card, of which the bill was going to my old address and I unfortunately forgot about. I have since caught up and paid it.


I've relisted to add more info and higher the interest rate. I'm hoping I will get funded to pay off this debt. Never use credit cards again.
Borrower's Other Listings
67686 No More Debt - Living the Simple Life HR $6,000 @ 16% Nov 28, 2006 Withdrawn
68853 Simple Life Needed - Debt Consolidation HR $6,000 @ 21% Dec 01, 2006 Withdrawn
343365 Reliable Prosper Borrower needs some extra help!! D $7,000 @ 15% Jun 02, 2008 Loan created

 

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