Posts Tagged ‘Debt’

Need A Loan? Lending Club Offers $50 To New Borrower Members

February 27, 2009

As a Lending Club borrower member, the company has extended a generous offer to my friends who may be interested in applying for a loan through the company.

The company will pay $25 to a non-profit of my choice for every friend who successfully joins LC as a borrower member.  And, each friend I refer who successfully joins will be given $50.

$50 is a nice incentive, but money aside, I have really been happy with LC’s services and I think it’s a great option for those of you who might be interested in consolidating debt, funding a project, buying a car or securing a loan for other reasons.

The company is not offering a web-link for signing up, but if you would like to receive an invitation, please e-mail me.

General Lending Club Requirements

Lending Club is open to US residents. To qualify to list a loan request, you will need a FICO score of at least 660 with a debt-to-income ratio (excluding mortgage) below 25%. In addition, your credit history must show that you are a responsible borrower.

  • At least 1 year of credit history, showing no current delinquencies, recent bankruptcies (7 years), open tax liens, charge-offs or collections account in the past 12 months.
  • No more than 10 inquiries on your credit report in the last 6 months.
  • A revolving credit utilization of less than 100%.
  • More than 3 accounts in your credit report, of which more than 2 are currently open.
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I Am Being Eaten Alive By High APRs

January 9, 2009

Dude, fuck this. I am spinning my wheels trying to pay down debt while being charged in the hundreds of dollars (each month) in interest. I’ve been caught (along with many others) in the perfect storm. There’s no new credit available, and all of my credit card limits have been bumped down to just north of my balances.

I have good credit, in the mid-700s, and in the past I’ve simply moved balances to lower rate cards (and, as you can see, that worked out so well for me). Now there’s nothing. Nada. I managed to get ONE new low interest card but my limit was put at just $1500. I’ve been weighing my options, which are rather depressing, because I cannot stand to look at another $100+ finance charge. My options are as follows, in order of priority:

Call The Credit Card Companies And Ask For A Lower Rate

I won’t lie, this scares me a little. I am incredibly passive and I hate negotiating. Also, I feel as though creditors now have the upper hand. I’m never late on payments (except for one time), I always pay over the minimum, if only slightly. So, I can’t use the excuse that I am unable to pay. I can threaten to take my business elsewhere but they must be aware that credit is tight, and if they look at my credit report they will see a number of inquiries as I’ve tried, in desperation, to open a few cards recently. Should I lie and say that I’ve lost my job or was demoted with lower pay? I’m not entirely sure how to approach this and would love some advice.

Try To Get A Personal Loan

If I am unable to negotiate any lower rates from my creditors, this would be my next step. However, I am not confident that this is a possibility, as the loan industry has also been impacted by the credit crisis. I’ve already submitted a loan request to the Lending Club to see if I get a bite.

Seek Help From A Debt Consolidation Organization

I’ve already kick-started this as well. It should be my last option (well, before bankruptcy, which I refuse to consider).

All I know is that I need to do something, and fast, or I will be swallowed by this debt.

Seeing Red

December 12, 2008

I’ve been dreading this bit. Laying out my debts is something I avoid at all costs. Looking at the black numbers set into a white page is quite different than simply imagining what I “might” owe.

But, it must be done. Here we go, from highest to lowest APR.

Bank of America CC (28.99%) – $9830.02
J Crew Store Card (20.99%) – $1,913.54
Washington Mutual CC (14.99%) – $7,500.42
AMEX (9.99%) – $3,535.94

Total – $22,779.92

That hurts. Also, remember how I said I was great at paying my bills on time? I lied. As it turns out, I was so wrapped up in the recent Thanksgiving holiday that I forgot about my Bank of America payment. So, my APR has shot up to nearly 29% and I owe $590, which I cannot take care of until I am paid in a few days.

To add insult to injury, the credit market has crawled into its shell and it’s currently impossible to find a decent personal loan, line of credit or balance transfer offer to consolidate. The thought of being stuck with a THIRTY PERCENT rate for a year makes me want to vomit. I will be researching consolidation options that I will talk about in a later post.

First Thing’s First

December 12, 2008

Have you ever checked your credit score?

I have. Many, many times. So many times that I’ve lost count. Currently it’s at 717.

You see, I am a certain breed of Person in Debt (PID). I have a lot of debt, but I pay my bills every month, have a good debt/credit ratio and my credit score is decent.

I’m a master at the “debt switch,” transferring balances from one card to another with a lower APR (exponentially harder these days as credit has all but disappeared). I am often very responsible about paying down my cards, but these periods are inevitably followed by complete loss of control in regard to spending.

So, without further delay, I will now lay out the dirty details of my financial self.

Income

Aside from some occasional freelance work and eBay sales, my income is my salary, currently just north of $46,000 per year.

Fixed Expenses

Rent – $550
Property Taxes – $300
Car Insurance – $115
School Loan – $54.27
Personal Loan – $237.30

Total Monthly Fixed Expenses – $1256.57

Some notes about my fixed expenses:
– I was paying $700 in rent but as my boyfriend owns his house and his property taxes were a huge bill for him twice a year, I told him that I would contribute $150/month if he matched it (covering his yearly bill of nearly $4,000). I started an ING account and contribute $300/month, and I’ve taken his “share” of $150 out of my rent.
– I just paid off my car.
– My “personal” loan is actually all of my college credit card debt bundled into a low-interest bank loan. I am not certain of the exact balance (although I know it’s under $20K). As the interest rate is so low, I am continuing to pay this monthly and will tackle this debt last.

Monthly Income ($1224.08 x 2) = $2448.16
Total Monthly Fixed Expenses = $1256.57
Net Monthly Income = $1191.59

Additional Expenses
These are expenses that I really cannot avoid (not discretionary spending), although they are variable. I really have no clue what these add up to monthly, as I’ve never tracked them. This will change, though. I am going to track my expenses for 3 months. Down to the penny. Beginning December 5th.