Consolidating High Interest Credit Cards
Purpose of loan:
I will be using this loan to pay off 3 of my high interest credit cards, lower my monthly payments, and get out of debt for good. The rates of the 3 cards are: Houshold Bank: 29.9%, Orchard Bank: 16.4% (pending increase), Chase: 29.9%.
These 3 cards used to be about 10% but after years of never having a late payment, Chase decided to up my rate. Without knowing of the rate increase, an automatic payment did not cover the new minimum payment, thus becoming a delinquent payment. My other credit cards increased their rates due to this which resulted in the 2 other delinquencies due to the same situation.
My financial situation:
I have been working as an I.T. admin for over 10 years at a major University. I am currently in transition to a new position working for the federal government, which will result in increased pay (I am not taking this into consideration for income at the time of taking this loan, or as a means to pay back the loan, this is purely informational in that my finances will improve making paying back this loan much eaiser).
The public record was a bankrupcy I declared 10 years ago (the record will be deleted in September) because I loaned money to a friend, and was never paid back.
The revolving credit balance is high because in the last year, I have invested a lot in personal development, education, and getting everything back on track and moving towards my financial goals and freedom.
Monthly net income: $ 4000
Monthly expenses: $ 2620
Housing: $ 1500
Insurance: $ 200
Car expenses: $ 0 (paid off)
Utilities: $ 60
Phone, cable, internet: $ 60
Food, entertainment: $ 100
Clothing, household expenses $ 100
Credit cards and other loans: $ 500
Other expenses: $ 100
I will be using this loan to pay off 3 of my high interest credit cards, lower my monthly payments, and get out of debt for good. The rates of the 3 cards are: Houshold Bank: 29.9%, Orchard Bank: 16.4% (pending increase), Chase: 29.9%.
These 3 cards used to be about 10% but after years of never having a late payment, Chase decided to up my rate. Without knowing of the rate increase, an automatic payment did not cover the new minimum payment, thus becoming a delinquent payment. My other credit cards increased their rates due to this which resulted in the 2 other delinquencies due to the same situation.
My financial situation:
I have been working as an I.T. admin for over 10 years at a major University. I am currently in transition to a new position working for the federal government, which will result in increased pay (I am not taking this into consideration for income at the time of taking this loan, or as a means to pay back the loan, this is purely informational in that my finances will improve making paying back this loan much eaiser).
The public record was a bankrupcy I declared 10 years ago (the record will be deleted in September) because I loaned money to a friend, and was never paid back.
The revolving credit balance is high because in the last year, I have invested a lot in personal development, education, and getting everything back on track and moving towards my financial goals and freedom.
Monthly net income: $ 4000
Monthly expenses: $ 2620
Housing: $ 1500
Insurance: $ 200
Car expenses: $ 0 (paid off)
Utilities: $ 60
Phone, cable, internet: $ 60
Food, entertainment: $ 100
Clothing, household expenses $ 100
Credit cards and other loans: $ 500
Other expenses: $ 100
posted by diggster at 12:33 AM
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