Personal Loans

[schel]

Hi all,
I have not been her in a very long while. We have credit cards again and have about 7500 in debt. Interest rates on all are between 21-24%. I received a offer from "Prosper" for a consilidation loan and would keep our payment about the same or lower it a little, but pay it all off in 5 years with option to pay more every month to pay off early. Or should we take out a lower loan amount 5000 and pay off the little ones like target, kohls, etc that are no more than $300 each for limit? Has anyone dealt with "Prosper" on a personal loan?
Schel

[AngelinaCat]

You have "about 7500 in debt."? It sounds like you are on your way to BK again. Cut up all the cards--or at the very least put them into a container of water and put that in your freezer and freeze it solid.

Work on paying off all the little debts then progress to the larger ones. But do it without the loan. Taking out a 5K loan to pay up bills, was one of our downfalls.

Get some discipline and learn to live on 'cash only'.

Sorry to be scolding at this time, but I think you need it.

[TXskyblue]

I am not one to be talking, but I agree with AngelinaCat. Stop using credit entirely.

To answer your question, I've used prosper as a lender and a borrower. They charge very high interest rates and the fees are substantial as well. I would not recommend them.

[lee307]

I do not voice an opinion on here very often but my wife and I took out a loan to pay off CC and ended up running the cards up again.
We paid on both the loan and the CC's and rocked on until CH13.

As said above, please do something with those cards that will prevent the use of them. We are now 4yrs in and can
see some light at the end of the tunnel. We will get a card to rebuild credit but I never want to "have" to use a card
again. I also never want to "want" to use a card again.

With all my reading on here I have come to several conclusions.

It doesn't matter how much money you make - you can mismanage your finances enough to need to file BK
It doesn't matter how educated you are - same result
It doesn't matter how many lines of credit you have - same result
It doesn't matter how good your job is - things can change - same result

The most important thing you can do is build your savings through discipline. I just hope when done with our 13 I can live by this.

[schel]

I am not one to be talking, but I agree with AngelinaCat. Stop using credit entirely.

To answer your question, I've used prosper as a lender and a borrower. They charge very high interest rates and the fees are substantial as well. I would not recommend them.

Was your use of Prosper before BK or after?

[tobee43]

i so agree with ms cat and lee.

if you have a tendency to get yourself into debt with cards why do this again? great post lee307 and right to the truth. it's like an drug addict getting clean and then just taking a little. by the time you turn around you'll owe this new card PLUS max out everyone else.

be very careful and best of luck to you!

[TXskyblue]

Was your use of Prosper before BK or after?

All pre-BK. My BK case is still pending.

[Logan]

Wow, you sound like a drug addict. You went through BK (rehab) and went right back into debt (using). And you know you've got issues and your answer is to go further in debt. Time to pull it together!

[schel]

I don't know why I asked anything here, we have decided to pay off what we can starting small and avoid the loan. Things were ok after BK until husband lost job last year without unemployment and we needed to live. Half of our debt is medical/dental & If anyone can't reply nicely, then don't reply at all. If I continue to get RUDE comments refering us to being "drug addicts", I am done here.

[justbroke]

While I do not believe that anyone, in the posts, have called you a drug addict, they are using those words to show a similar pattern of abuse. In your case, the posters may feel that you are abusing "credit" and not able to get out of the cycle or borrowing in order to stay afloat. I believe that the posters are giving you advice from the "tough love" perspective.

In any event, the way to get out of debt is not to incur more debt. I will say, that consolidating debt for a lower interest rate, may be in a person's best interest. If you do consolidate debt, you should actually close the old cards or you'll end up with twice the debt! (I speak from experience! Prior to filing for bankruptcy, I consolidated a bunch of debt from my credit cards to a HELOC. I also paid off a car as well with the proceeds of the HELOC. I then ran the credit cards back up... and these cards had limits totaling over $60K. It is a dangerous slope.)

[frogger]

7500.00 in credit card debt, 21-24% interest rates, and you think people are "rude" for pointing out what got many people here in the first place?

That slope is real slippery........

[Logan]

I don't know why I asked anything here, we have decided to pay off what we can starting small and avoid the loan. Things were ok after BK until husband lost job last year without unemployment and we needed to live. Half of our debt is medical/dental & If anyone can't reply nicely, then don't reply at all. If I continue to get RUDE comments refering us to being "drug addicts", I am done here.

I mean no disrespect but this is the rebuilding credit forum, not the go back into debt forum. I feel for your job loss but in your original post you mention paying off target and kohl's cards and mention nothing of medical or dental bills.
I won't lecture you anymore but I would suggest not applying for anymore credit and focus on your husband getting a job and paying off your bills.

[RichM]

I don't know why I asked anything here, we have decided to pay off what we can starting small and avoid the loan. Things were ok after BK until husband lost job last year without unemployment and we needed to live. Half of our debt is medical/dental & If anyone can't reply nicely, then don't reply at all. If I continue to get RUDE comments refering us to being "drug addicts", I am done here.

You can't borrow your way out of debt.

That being said, a debt consolidation loan can sometimes be helpful IF you have the discipline to close the accounts that were paid off, and to not accept new credit offers. With apologies if I am wrong, your post didn't exactly scream that out about you.

If I am not wrong, however, then you probably would be better off at this point with a DMP from a non-profit credit counseling service. They will require you to cut up all your cards and not accept new credit without permission. (I have been told that some agencies will make exceptions for a single, 100-percent secured credit card, so you can rent a car or whatever; but that's just what I've been told, so don't take it as gospel.)

If you take the Prosper offer without closing your card accounts and without having the discipline not to open new ones, then I fear that the only thing that will happen is that in less than a year, you will find yourself with $15,000 (or more) in debt, rather than $7,500.

That's my advice, and it's worth every penny you paid for it.

-Richard

[Pjmax]

Schel, with all due respect, the folks on here are so far from being 'rude.' They are also extremely supportive, but as you have seen from the answers, you shouldn't expect to always hear the answers you want to hear. If anyone seems upset to see you head down a dangerous path, it's because THEY'VE BEEN THERE, and they are trying to help.

RichM's suggestion about a DMP is worth considering, and IMO a better alternative than a Prosper loan.

[Drazil65]

Hi, sorry your husband lost his job and things have not gone so good since. I believe that sometimes the truth is really hard to see when clouded by denial. Yes, your husband lost his job and that is tough on anyone but when someone has already gone through bky it can be the beginning of a downward spiral again by justifying the use of credit cards.

With bankruptcy comes the responsibility/obligation to learn how to live without credit period. If you lose a job then you get 2 part time jobs to make it up, we have all been there at some point and you do what you have to do. But depending on credit cards again is not one of the options. It did not work the first time and unless you have learned that, it will not work this time. History repeating itself usually sucks.

So, start paying off the debt and forget the loan, it is not the solution for you. You may want to look into the DMP route as this may be a good alternative and they will have you cut up your cards (which is exactly what you need to do). I wish you the best on this slippery road, good luck!