down more

My credit card debt is now about $8100, down from over $11,000 in January. At times I feel like I'm getting nowhere so it is good that I'm keeping these records. I can see the progress, even though from time to time I have an expense for which I do not have cash and I put it on a card. I try to get that paid off as soon as possible, that extra expense, so I can be back on track.

Even better, with some of the cards paid off there are fewer payments so it is easier to deal with what's left and to continue to make bigger payments on the higher-interest cards.

I am still worried about how I will pay for everything when I have my new home but I suspect that with some judicious cutting here and there I will do all right, although I will certainly notice.

worries

I do not have a good handle on my money yet. This week I have had to shell out several hundred dollars for veterinary care and I didn't have the reserves. I need to have the reserves.

I worry about my new house and how much it will cost every month. I think I may become a serious recluse, only leaving the house once or twice a week, once I have that house, so I can cook all my meals and not pay much for vehicle use.

My new home

My new mobile home has been ordered. I am worried about making the payment every month. I've been worried about this since I first started on this trail. My life is likely to change significantly unless I find another source of income.

Prosper loan request number 1...

My first effort to get a loan through prosper.com failed. That is, nobody bid on it. A number of members wrote to me, saying the trick is to set a higher max interest rate up front. After a few days, people will start bidding lower rates and I should get the rate i want, or close to it. Others sugggested that I join a group, that I would be more likely to be funded. Of course it was group leaders who suggested this.

I haven't made up my mind about groups yet. It turns out that my credit score is "C", and with that score the averages show that I would do better in a group, a hair better. If my score goes up to B it may be less certain. And I am very close to B.

So I went through a simple process to become a lender in the meantime! And I bid on another loan. Bid $100 at 15% on a loan request with a max interest rate of 20%. I figure I might as well see about making some money while I make up my mind about the next request for a loan.

That request may happen soon, though. I got the estimate for the landscaping and replacement of my driveway (asphalt dug up, concrete poured) for my new home and it was a lot higher than I expected. I may need to get a loan to pay for it. I spent the last couple of days getting past the pain of this new debt. I have been working very hard to reduce my debt and it looks like I'll be kicking it up quite a bit very soon.

Prosper part 2

I made my request for a loan through Prosper. I have gotten no bids yet but have gotten messages from four different groups on there, all offering to take me into their folds. The groups form to create lending and borrowing power. I am frankly at a loss to figure out which group I should join. It appears that going it alone is a lot more difficult. People want more of an assurance that the loan will be paid back and when one is part of a group that assurance is there. Rather like group insurance.

So this will be the next challenge: to figure out which group.

Prosper.com

From some other personal debt sites on the web I just learned about prosper.com. This site gathers people who need money and people who have money to lend and puts them together. The borrower asks for a specific amount of money and gives a max interest rate. The lenders bid on the loan. Prosper puts together the "winning" bids for the final interest rate and the borrower makes one loan payment per month, deducted from her bank account. Loans are spread over a three-year period, which is, interestingly, the length of time Pay it Down (see book at right) says we should strive for to reach debt-free status.

Prosper gets a fee for putting the pieces together. I just asked for a $3000 loan at 12% interest max. For this loan, Prosper will take a $30 fee, if it is funded.

New credit card

Over the past year my credit score has gone from about 590 to 690. So now I get many offers for cards in the mail. After checking bankrate.com (I love that site) for what's available, I settled on one that had come in the mail, and yesterday I went online to accept the offer. I got the 8.99% interest rate that the letter had offered (with an asterisk - depends on credit) and I noticed that they charge a fee of 3% for balance transfers. I figure that still is going to put me way ahead if I transfer a balance from an account with an interest rate of almost 33%. Which, I might add, should be illegal.

I therefore also requested a transfer from that high-interest account. I will find out in about three weeks if that has gone through. I don't see that there will be any problem. And I am proud of myself for doing this. I have other high balances on other high-interest cards that I need to deal with too, but I will be happy for this moment.