Dear Prosper Lenders, I have edited this post to due to my re-listing. Please let me know if you have any questions.

My Listing

In response to the many suggestions, below are links to a cash flow summary, a ledger format of cash flow by transaction, and my debt plan. NJNoiz showed me how to apply a portion of my free cash to payoff my debt entirely. Following this plan, I can eliminate all of my debt in 11 years! (Thank you NJNoiz).

http://prosperlenders.wikispaces.com/space...FlowSummary.htm


http://prosperlenders.wikispaces.com/space...ledCashFlow.htm


http://prosperlenders.wikispaces.com/space...ge/DebtPlan.htm

Thank you to all of you for your feedback and support. :D

Mocha

the current DQs scare me

Agreed. Can you please explain them?

Everything is listing on my member page. Do you have access or should I just place it here for you and hopefully future review?

mocha

Current Delinquencies
Mortgage/ late payments

Mortgage on rental- 2 months late

Credit Cards
Citi Bank - 3 months past due
Chase (3) - amazon, disney and platinum
Wal-mart - 2 months past due

***The cards mentioned above have high minimum payments and the interest rates have gone up to 29%. I have enrolled in a debt management program through my Credit Union to assist me with these accounts. The monthly payment is $595.(reflected in budget breakdown)

Macys - It's only one account, broken up into 3 parts: regular flex, deferred and Visa- 3 months past due
Gap - 2 months past due

Credit Union MC - past late payments, Now current

Hi Mocha!

I see your issue with the PDLs and do think that you can get out of the mess you're in with another opportunity. My only concern is that you may not be asking for enough money - as crazy as that sounds. In other words, I'm not sure $2800 is going to help you enough so that you don't continue down a slippery slope.

You definitely want to get rid of the PDLs - that's $3261.
You are three months behind on your 1st mortgage - that's $3129.
You are two months late on the retal mortgage - didn't see what that payment was.

But what I am getting at is you need to resolve the PDL's and the mortgage lates to become cashflow positive and then you can start knocking down the rest of your debt. But if you leave those open, this Prosper loan is simply another bridge that will eventually break. Also, the mortgage lates are a big deal. At three months, you'll be recieving a notice of default, if you haven't already.

I know you've asked for greater amounts before and were not sucessful, but now you are with a better group who will work really hard for you. In my humble opinion, I would ask for $5k and build a strong convincing plan on what you will do to get out - and stay out of the mess you find yourself in.

Always here to help.
NJNoiz

[QUOTE]

NJNoiz
Believe me I know that asking for $2800 is not enough, but it would help clear some of those PDLs. My initial request was for $5000, but was told that with the combination of my high DTI, CR "E" and my state interest cap of 15%, it would be EXTREMELY difficult. My GL is excellent and he plans on vetting my request. If I could get the full $5000, that would clear up the PDLs and the mortages, in addition to using my paycheck.

No, the 1st mortage is behind $1200, not $3129. I have a great rate and payment, but those dang, PDLs. I'd really be going crazy is it was $3129. The rental is $1022.

Yes I fully agree with needing to have positive cash flow; and if I could get the PDLs taken care of, at least some of them, then I believe all be flow a little bit easier. As I have said, before, I have definitely learned my lesson, and I will NEVER use those PDL co. again. Believe me!

How do you suggest I go about building a strong convincing plan? Should I detail, more than I have (I think), what would be paid and when? I will give periodic updates, or whatever it takes to get my loan funded. Help please!

Below is your budget and some wiggle room you have. When you're broke, you need to cut out the little luxuries.

Current Expenses
Mortgage $1043 - is this the regular or behind payment?
Utilities $ 275
Car payment $ 304
Car Ins $100
Gas $ 80
Credit Cards $595
Additional Cards $644 - which addt'l cards?
Payday Roll Over $730
Misc $ 75
Homeowners ins. $ 45
Phone home&cell $175 Go with a basic phone, and no cell. $30/mo, tops
Cable $ 52 - cut that out of your budgetInternet $ 15
Food $200
Son's tuition $224 Total $4557 $-143


If you were to go with a basic phone service at $30 a month and no cable you'd be able to go from -$143 a month to POSITIVE, each month. When you're broke and relying on payday loans you can't afford luxuries like cell phones and cable bills.

Sometimes you're charged to get rid of cell phones - bring it down to a basic level of service.

What would it take to pay off, in full, all your PDLs, credit cards, etc? Do you have any positive equity in your car? Can you sell it, buy something cheaper and pay off your debts?

Is the rental property cash-flow positive? Do you have equity? If no and yes, sell it. Being a landlord/real estate investor is not for everyone. :)

I was acutally sitting here and writing down, what I could cut out: cell phone, cable and miscellaneous items, and chaning the existing home phone svc.
the mortage listed is the total payment for primary and residential property. Behind approx. $1000. Nothing to sell!

Mocha

[QUOTE]


$364 of it {$875 - $512 (morgage) }

Yes, the 15% rate cap will turn off a lot of lenders, but if they truly believe you have turned things around and are confident that you will be able to make the payments, there are many other lenders who would still bid -- myself included.

You should go ahead with the 5k listing with Tommy, assuming that will clear the PDLs and bring everything current. He's well respected and can bring people in. The problem is, I'm not sure you've convinced HIM that things will turn around. You clearly have a mountain of debt in front of you, and removing it will take many years of picking away at it with a spoon.

What I think has lenders concerned is that, unless your cash-flow turns positive and you are committed to sticking to a budget that doesn't involve charging things back up as you pay them off, you could be looking at bankruptcy.

Eliminating the PDLs, cutting back on expenses, and bringing current ALL of the lates is the only way you can get started. You have to put yourself on top of the pile and then stay there -- pay everything on time from then on. If you fall off, even once, the vicious cycle starts all over again. I have no doubt at all that you are sincere and have learned your lesson. However, are you prepared for uphill climb ahead?

Track every penny you spend. Carry a notebook and write everything down.... I mean everything -- newspaper, coffee, snacks. You'd probably be surprised what expenses you have that aren't covered in your budget. For example, do you really have HO insurance on two homes for $45 a month? What if something at either house needs repair -- broken toilet, the heater dies, etc. Cut the cable, the cell phones, maybe even think about public school for your son. If there is any equity in your other house, sell it and pay off credit cards.

I know how it feels -- I've been there. At one point, my wife and I had $80k in unsecured debt. Today, we have no debt other than cars and mortgages, and we now have a few hundred K in retirement plans and investments. We lived on Top Ramen for a few years, but believe me, when you get it all cleared up, it's well worth the pain. If you look at your total (non-mortgage/car) payments, you get almost $2,000. Can you imagine having that much extra money each month? That alone should be your motivation to spending a few years with nothing but the basics.

If you can't get a Prosper loan right now to get to the top of the pile, then try to turn cash-flow positive on your own, by cutting every expense you can, and hold it for a couple months, I have no doubt that you would be able to get a Prosper loan by showing your progress to your GL. Holding out may be very hard to do with the current lates, however.

Sorry there's no quick answer to your problems. I DO think you can get there from here, however.

-Dill

Yes, the 15% rate cap will turn off a lot of lenders, but if they truly believe you have turned things around and are confident that you will be able to make the payments, there are many other lenders who would still bid -- myself included.
I am more than willing to do whatever necessary to prove myself, and I am confident and hope the lenders will trust me enough to show them that I AM DETERMINED to turn things around.

You should go ahead with the 5k listing with Tommy, assuming that will clear the PDLs and bring everything current. He's well respected and can bring people in. The problem is, I'm not sure you've convinced HIM that things will turn around. You clearly have a mountain of debt in front of you, and removing it will take many years of picking away at it with a spoon.
I did take the advise/suggestion and listed for teh 5k, but Tommy has to review it first. Tommy has worked with over the last week and he I believe, he believes in me, but it's going to take help from lenders like yourself. I faxed him my credit report, my income verification, rental verification and I'll fax whatever else he needs. I plans on vetting my listing either today or tomorrow. As far as the debt, aside from the mortgages/car, I am deligently working on that. Since the minimum credit card payments were high and then increased in interest (29%), I sought the help of a debt management through my credit union that will help me eliminate those cards in a few years. That's something I have committed myself to doing.

What I think has lenders concerned is that, unless your cash-flow turns positive and you are committed to sticking to a budget that doesn't involve charging things back up as you pay them off, you could be looking at bankruptcy.
I AM wholehartedly committed to turned this situation around. I have no choice. I'm determined. I don' t know how else to prove it other than, providing frequent progress on my situation. If I can hopefully get funded, I would definetly be willing to provide updates. (even if I'm not funded). I don't want to file bankruptcy so I'm trying everything I can think of to prevent that from happening.

Eliminating the PDLs, cutting back on expenses, and bringing current ALL of the lates is the only way you can get started. You have to put yourself on top of the pile and then stay there -- pay everything on time from then on. If you fall off, even once, the vicious cycle starts all over again. I have no doubt at all that you are sincere and have learned your lesson. However, are you prepared for uphill climb ahead?
My 1st priority is to elimiate the PDLs, cut back, and bring everything current. That's why I requested the 5k. I already plan on cutting out the cell phone, cable and take some of the extra services on my home phone. I have learned my lesson!!!

Track every penny you spend. Carry a notebook and write everything down.... I mean everything -- newspaper, coffee, snacks. You'd probably be surprised what expenses you have that aren't covered in your budget. For example, do you really have HO insurance on two homes for $45 a month? What if something at either house needs repair -- broken toilet, the heater dies, etc. Cut the cable, the cell phones, maybe even think about public school for your son. If there is any equity in your other house, sell it and pay off credit cards.
Unfortunately, public school isn't an option. The schools in my area are horrible, and there are only 2 public schools to chose from and I don't like either. The charter schools...well he's on the never ending waiting list. The homeowners insurance for the residential is paid in full until 6/07. So that $45 is for my primary residence. And true indeed, I need to have a stash for incidentals. Again with this loan, and having everything caught up, I can take a little out of my pay each week for these things. Not too much equity in the other home.

I know how it feels -- I've been there. At one point, my wife and I had $80k in unsecured debt. Today, we have no debt other than cars and mortgages, and we now have a few hundred K in retirement plans and investments. We lived on Top Ramen for a few years, but believe me, when you get it all cleared up, it's well worth the pain. If you look at your total (non-mortgage/car) payments, you get almost $2,000. Can you imagine having that much extra money each month? That alone should be your motivation to spending a few years with nothing but the basics.
I will do that. I know every little bit helps; but now I really know it. The frustrating part is realizing all the extra money that I'd have.

If you can't get a Prosper loan right now to get to the top of the pile, then try to turn cash-flow positive on your own, by cutting every expense you can, and hold it for a couple months, I have no doubt that you would be able to get a Prosper loan by showing your progress to your GL. Holding out may be very hard to do with the current lates, however.
Again, whatevery progress needs to be seen, I'm willing to show. And I'm tackling as much as I can day by day.

Sorry there's no quick answer to your problems. I DO think you can get there from here, however. I know, some things take time.


Thanks Dill,

Mocha

*poof* nevermind

She is re-listing for 5k -- since that should be enough to bring her current. Anything lower would be a bandage instead of a tourniquet. I believe the re-list is awaiting GL approval.

I have no funds left for bidding right now (I hate keeping a lot of cash where I earn no interest), but started a transfer yesterday. I pledge $100 bid on Tuesday, if this hasn't been funded by then.

-Dill

[QUOTE]

Dill, I thank you today, for Tuesday! I thank you for all your advise and suggestions. I just thank you, period. :D

Thank you too, njnoiz!

Mocha

Here is the new loan link for this listing.

https://www.prosper.com/public/lend/listing...listingID=32312

I will be posting the results of my financial vet tomorrow.



My apologies for the slower than normal service on this one. I've had a lot of outside work this week, which has caused my Prosper time to be reduced. I will step it up tomorrow to get this vet complete and start searching for our next loan request.

Thanks!

Tommy

At the request of group member Sunshine14 the following financial review was completed on 8/19/06. Sunshine 14 is currently rated as an E borrower. She is requesting $5,000 at her state?s maximum interest rate of 15%. Please see below for commentary on the items located on the following documents that were received via fax on 8/14/06. The name on all of the documents submitted matches the name provided by Prosper when this member joined our group.

Here is a list of the documents that were provided:

(1) copy of the borrower?s Experian credit report dated 8/14/06
(1) copy of the borrower?s part-time pay check
(1) copy of the borrower?s full time pay check
(1) copy of a Rental Authorization Letter from the State of New Jersey


Experian Credit Report Review:

Negative Items:

American Heritage FCU Credit Line
Status: Open/30 Days Late, $100 Past Due as of 08/06
Balance: $5,105
Monthly Payment: $102
Reported: 08/06
Notes: 30 days as of 08/06 & 07/06

Capital One Bank
Status: Paid/Closed, Current was Past Due 30 Days
Balance: $0
Reported: 07/01
Notes: 30 days as of 01/01, 10/00, & 05/00

Chase Account
Status: Closed/Past Due 60 days. $392 Past Due as of 07/06
Balance: $2,062
Monthly Payment: $142
Reported: 07/06
Notes: 30 days as of 06/06 and 60 days as of 07/06

Chase Account
Status: Closed/Past Due 60 days. $462 Past Due as of 07/06
Balance: $7,544
Monthly Payment: $153
Reported: 07/06
Notes: 30 days as of 06/06 and 60 days as of 07/06

Chase Account
Status: Closed/Past Due 90 days. $474 Past Due as of 08/06
Balance: $5,308
Monthly Payment: $133
Reported: 08/06
Notes: 30 days as of 03/06& 06/06, 60 days as of 07/06, 90 days as of 08/06

CITI Account
Status: Open/Current was past due 60 days
Balance: $12,753
Monthly Payment: $251
Reported: 07/06
Notes: 60 days as of 03/06

Casual Corner Account
Status: Paid/Closed/Current Was Past Due 30 days
Balance: $0
Monthly Payment: $0
Reported: 08/06
Notes: 30 days as of 02/06

GAP Account
Status: Closed/Past Due 30 days; $38 Past Due as of 07/06
Balance: $515
Monthly Payment: $22
Reported: 07/06
Notes: 30 days as of 06/06 and 60 days as of 07/06

WalMart Account
Status: Closed/Past Due 60 days; $144 Past Due as of 07/06
Balance: $1,047
Monthly Payment: $43
Reported: 07/06
Notes: 30 days as of 07/06

MCYDSNB Account
Status: Open/Current Was Past Due 30 Days
Balance: $1,085
Monthly Payment: $26
Reported: 07/06
Notes: 30 days as of 06/06
Comment: Borrower claims no knowledge of this account

New Century Mortgage
Status: Open/ Past Due 30 Days, Balloon Payment of $40,870 Due 04/2036
Term: 40 Year
Balance: $67,279
Monthly Payment: $511
Reported: 06/06
Notes: 30 days as of 06/06

PNC Account
Status: Open/ Past Due 60 Days $745 Past Due as of 07/06
Term: 15 Year
Balance: $44,026
Monthly Payment: $392
Reported: 07/06
Notes: 30 days as of 01/06, 02/06 & 06/06 and 60 days as of 07/06

PNC Account
Status: Open/Past Due 60 Days $274 Past Due as of 07/06
Term: 7 year
Balance: $8,610
Monthly Payment: $137
Reported: 07/06
Notes: 30 days as of 01/06, 02/06, & 06/06 and 60 days as of 07/06

CBUSA Account
Status: Open/Past Due 30 Days $40 Past Due as of 07/06
Balance: $403
Monthly Payment: $32
Reported: 07/06
Comments: Account is being disputed by the borrower

VISDNB Account
Status: Open/Past Due 60 Days $159 Past Due as of 07/06
Balance: $2,272
Monthly Payment: $57
Reported: 07/06
Notes: 30 days as of 06/06 and 60 days as of 07/07

Wells Fargo Account
Status: Paid/Closed/Current was past due 30 days
Balance: $0
Monthly Payment: $0
Reported: 08/01
Notes: 30 days as of 03/01 and 05/01

Express Account
Status: Open/Current was past due 60 days
Balance: $0
Monthly Payment: $10
Reported: 04/06
Notes: 60 days as of 01/01 and 02/01 and 30 days as of 02/06, 03/01, and 12/00
GL Notes: Borrower Has Not Made a Charge to this Account since 02/06

Limited Account
Status: Closed/Current was past due 30 days
Balance: $0
Monthly Payment: $0
Reported: 01/03
Notes 30 days as of 01/00

Vic Sec Account
Status: Open/Past due 30 days $20 Past Due as of 07/06
Balance: $253
Monthly Payment: $10
Reported: 07/06
Notes 30 days as of 07/06 & 11/00
GL Notes: Borrower Made Recent Charges to this Account


Accounts In Good Standing:

Old Navy Account
Status: Open/Never Late
Balance: $376
Monthly Payment: $19
Reported 08/06
GL Notes: Borrower made recent charges to this account

MCYDSNB Account
Status: Open/Never Late
Balance: $2,788
Monthly Payment: $68
Reported 07/06
GL Notes: Borrower made recent charges to this account

US Dept of Education
Status: Open/Never Late; Deferred: Date Unknown
Balance: $26,014
Reported 06/06

US Dept of Education
Status: Open/Never Late; Deferred: Date Unknown
Balance: $10,500
Reported 06/06

(8) American Heritage FCU
Status: Paid/Closed/Never Late
Balance: $0
Reported 06/05, 01/03, 08/06, 06/04, 04/03, 05/02, 05/06, & 05/02

Bank First
Status: Paid/Closed/Never Late
Balance: $0
Reported 07/04

Cap One Bank
Status: Paid/Closed/Never Late
Balance: $0
Reported 03/03

Sears Account
Status: Closed/Never Late
Balance: $0
Reported 06/06
GL Notes: Account never had a balance

Fingerhut Account
Status: Closed/Never Late
Balance: $0
Reported 10/02

BEBE Account
Status: Paid/Closed/Never Late
Balance: $0
Reported 08/06

JCP Account
Status: Paid/Closed/Never Late
Balance: $0
Reported 07/06

(2) HSBC Account
Status: Paid/Closed/Never Late
Balance: $0
Reported 06/04 and 03/05

PNC Bank
Status: Paid/Closed/Never Late
Balance: $0
Reported 03/05

Strawbridges Account
Status: Transferred, Closed/Never Late
Balance: $0
Reported 03/06

Sun National Account
Status: Paid/Closed/Never Late
Balance: $0
Reported 03/05

Target Account
Status: Closed/Never Late
Balance: $0
Reported 06/06

Citi Account
Status: Paid/Closed/Never Late
Balance: $0
Reported 12/04

US Dept of Education
Status: Paid/Closed
Balance: $0
Reported 03/05

(3)Verizon Account
Status: Open/Never Late
Balance: $0
Reported 04/06

(2)Wells Fargo Account
Status: Paid/Closed/Never Late
Balance: $0
Reported 06/01

WFF Finance
Status: Paid/Closed/Never Late
Balance: $0
Reported 03/06

Dress Barn Account
Status: Closed/Never Late
Balance: $0
Reported 09/05

Structure Account
Status: Closed/Never Late
Balance: $0
Reported 06/02

Zales Account
Status: Closed/Never Late
Balance: $0
Reported 08/05


Borrower?s Part-Time Paycheck
Dated 07/24/06 for $300.67 (take home) with YTD of $660 (bi-weekly paycheck)

Borrower?s Full-Time Paycheck
Dated 07/22/06 for $778 (take home) with $1006.81 in deductions YTD of $ 4872.55 (bi-weekly paycheck)

Rental Authorization Letter
Dated 05/15/06 allows borrower to rent a property located in the State of New Jersey.



All questions related to the information contained within the financial vet should be addressed to group member Sunshine14. All documents appear to be authentic, but given the fact that they are facsimile copies I cannot guarantee authenticity. This review was completed at the request of the borrower, Sunshine14, and in no way indicates a recommendation to bid/not bid on this loan by the reviewer, Sophtommy00.

Please do your own DD prior to making any decisions on this loan.

The actually full-time take home pay is $1378. I have two checking accoutns at the same credit union; $600 goes to one account, and the $778 goes to another.

There is a deduction labeled as Allotment.SV for $600, which could represent a second account. It has a YTD total of $600.

Thanks for the clarification Mocha. Also, please see my email with other questions that are likely to come up upon review.

Thanks!

Tommy

Are we allowed to say "I THINK SONIC LENDERS IS AN EXCELLENT GROUP"?

I'll say it!

Big Gulp promised his wife would send me chocolate in Prosper Prison for continuing to open my mouth! :P

Penelope

I agree. Thanks again, Tommy. :)
Mocha

We are just not suppose to say anything negative. But lots of times newbies are looking for groups particular lenders support. They are posting a wall of shame of bad borrowers, we need a wall of shinning star group leaders. eBay does it beautifully with their star system.

There has got to be a easy way for borrowers to evaluate the groups.

Credit report shows 19 delinquencies:

4 of those accounts are closed and paid in full(Capital one, Casual Corner, Wells Fargo,and Limited)

American Heritage is MC that is now current (I can send proof w/statement)

Wal-Mart, 3 Chase accounts, and Citi account are the cards in the Debt Management Program

Macy's, as mentioned is just 1 card broken into 3 accounts; a regular account, a deferred account and a Visa. One of the Macy's is current.

New Century & PNC are mortgages

CBUSA/Homedepot - current home depot (I have current receipt and bill showing it).

The Gap, Macy's are the 2 of the items I will pay if funded.

Report is inaccurate in showing that I recently made charges to any account. I can get statesments if necessary showing last date of activity.

Vic Sec - Made charges in June; nothing since

Student loans are deferred until at least 2009. I say at least because I have 2 more classes to take in September. The initial date was August 2006, but since I'm going back the date changes.

As mentioned in on my member page, I realize my mistakes and will change my spending habit and improve my budget my cutting back. I will cut out my cell phone, get basic service on home phone, don't need cable and brown bag it for lunch. I am very committed to turning things around. This loan will allow me to get on track and catch up. Thanks again
Mocha

Besides American Heritage, have any other accounts showing as past due been paid to current? If not, I calculate $2748 past due plus $3261 in PDLs. That's about $6k, so you'll still be about $1000 short. Not sure where the money to pay Gap and Macys is in all that.

Can you break down where the $4950 (remember $50 is Prosper origination fee) will go?

-Dill

Items to Pay Off

PDL's $3,261
Get current! $1,739
$5,000 ($4950)

I still have my salary and rental income. I know that I have 10 days for my loan to fund. Of course the sooner the better, but I'll chip away at what I can until the loan gets funded (if). A few of the PDLs are in the repayment proces; where I'll paying the interest and paying something toward the principle. And from now until my loan expires (8/28), I'll receive 2 checks between now and then and I'll pay what I can. If I'm funded before/by my 10 day expiration, I can use my pay of 8/28 to make up the $1000 difference, and my child support. Macy's and Gap will fit into this. Getting help from Prosper will help me get out of my messy situation and "start over". I realize I still have to use my own money along, with what Prosper may loan me, to really get a foot ahead.

Mocha

Okay, fair enough. I guess I was just looking for a dollar-by-dollar plan. But then again, not everyone is as anal about money as I am. What really helps me, though, is to plan out the next 3 months' budgets. I use Quicken, but a piece of paper acting as a ledger would do.

Somehting like:

That way, you know every day where you stand and can predict ahead of time if you're gonna have a shortfall. In order to make this work, you can't do things like "well, I've got money coming in, it'll work out." Saying ($1739 = Get Current!) makes me nervous. Unless you know exactly how much you have coming in, and where it will go, you are flying by the seat of your pants in the hopes that it's gonna be fine.

I'm suggesting that you take control and make it be fine. That said, my pledge still stands. It just might make it easier for others to get on board with a very specific plan.

-Dill

Mocha,

I have to say that Dill might have a really good suggestion for you sitting in his example. It would probably be really helpful to map out all your expenses in a ledger form, similiar to the one Dill created, for the next 3 months.

I believe that there are lenders here who want to help you, but the problem is trying to decipher between whether they are temporarily stopping the financial 'bleeding' or if this money would make a long-term difference. We know you feel it would make a long-term differnce, so maybe if you articulate that in the form of a three month budget it will help show lenders the same thing.

Just a thought....I like where Dill was taking it though, so give it some thought!

Tommy

I'm speaking from personal on this subject...

I don't know what makes a bad school bad and what makes a good school good, but I can tell you that your son's education, no matter where he goes, his edcation is going to be as good or as poor as the effort that he and his family put into it. That means that as long as the classroom isn't a complete waste of time/free-for-all, a little involvement from home can go a long way.

When somebody needs financial help, they can't be helped until they are ready, able, and willing to help themselves. What that really means is that they've cut out absolutely every unnecessary expense. It means that if the expense isn't necessary for survival, it doesn't get spent.

I"ve done the above (dealt with public schools and lived on a bare bones budget). It sucks. But, I can tell you I am a lot better off for having done so.

[QUOTE] In no way am I knocking all public schools. I went to public school my self, but that was a different time from the circumstances and situations that are happening today. I can only speak for what I see and encounter where I live. I will be living of a bare bones budget just to get things back on track and long after things are on track.

I definitely understand your school situation now. If the "tough love" advice everybody gives sounds harsh, please understand that it's way too easy for a borrower with messy credit to say "I'm fixing things" and really not be. We're already seeing people who have "promised" never even make one payment on their loan here. So the challenge becomes how to separate those that mean it from those that really don't (or think they do but then find out they can't.) So demonstrating improvement in your credit goes two ways -- establishes your credibility and lessens the chance that you'll file BK on us (happened already too).

No, I understand the "tough love" advice, and I understand and agree with everything you're saying about fixing things. And I know you and all the other lenders have heard it all before, about "fixing things". It's risky! I know borrowers have said, including me about: "I promise to pay", "you can count on me", just give me a chance, and the list goes on. I don't know what to say. I WILL make changes in my spending habits and I will pay on time; doesn't Prosper deduct the funds directly out of your account. And as far as BK, I am trying everything not to do that. I can do this without BK. I just have to be patient and persistent. I'm preparing, as suggested at least a 2 month budget to show what will be paid, when it will be paid and to who. However, if my loan is funded, then these things will be paid before the dates and times that will be listed.
Thanks
lenderguy

Mocha,

I know it is a bit more work, but trying showing two different budgets. Show one if you do not get the loan and one if you do. Do the budgeting for 3 months out. This will help show your own financial plan vs. the new plan if you were granted a loan by lenders on Prosper.

Thanks!

Tommy

I'm working on that as we speak. Since it may be lengthy, should I email it to you and if possible would you scan it with a link or should I just cut and paste it from notepad?
Thanks
Mocha

either is fine

Ah, yes, the famous autowithdrawl excuse. There are so many ways to beat this, that I won't mention them here. The question I want you to think about for a second is if Prosper auto-withdraws, then how can there be late payments? I know the answer, but it's a question I want every borrower to ask themselves when they write "oh, so the payments MUST be made on time with an auto withdrawl."

Mocha, note that when preparing your budget, it's okay to have an entry like:

9/2: Cash for the week $ -25 (lunches, coffee, etc)

It's better to account for spending money in the budget, rather than ignore it and pretend to yourself it won't happen. If you do it well, you'll find out immediately whether your plan will work and where, if anywhere, you can still cut.

In my own financial planning, I have everything in Quicken, update it every day (because nothing ever goes exactly as planned), and know usually a few weeks ahead of time what my bank account balance will be (approximately) on any given day.

-Dill

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No excuses from me, just question. The only way I can think of, and it's not really beating it, is if you just don't have the money there. But then you'll still be charged by your bank for NSF. But neither are a concern of mine. I would just like to be funded and "start clean"(er). Which ever way they need to get my payment is fine with me. :)

Mocha

That's a great suggestion, I now do the same. Using Quicken as well, I found that the ATM transactions were getting out of hand and I never new where the cash went at the end of the day. So I've now confined myself to $60/week. While it doesn't seem like much, 70 hours per week either at work or commuting to work - why should I need to spend more than that? If I pull extra cash out for a planned purchase or family trip, that's another story.

Dill,

I've been working on this for at least an hour. Question...I'm not sure how I should list everything as far as monthly or as you have it, where each paycheck and expenses kind of roll together. What doyou suggest. I don't have quicken, yet. I'm currently trying to prepare it in Excel.

Thanks
Mocha

Excel works well for this. For bi-weekly paychecks (which I also get), I tend to think in terms of half-month periods for expense planning. What that means, though, is that the monthly obligations skew the numbers a bit. That's why a three-month budget is the essential for bi-weekly pay, so you get an idea where your balances will "settle".

You basically plan to get one paycheck in the first half of the month and one paycheck in the second half. This is a really cool way to plan it because every six months, you get an extra paycheck. I even go so far as to leave that out of my planning, and it's free money I use to keep my sanity or use for Christmas gifts (the second "free" check each year.)

If all of your monthly expenses can be handled with your bi-weekly paycheck, you can use the extra one for whatever you want. It might be good to use some to pay down debt balances, but you should also leave some for yourself to stay sane throughout the next few years. Most importantly though, do not rely on this money in your budget or you won't have it for yourself.

So anyway, with one paycheck per half-month, you use the first half paycheck to pay the second half expenses You can divide up each due date into either the first half of the month or the second. Your first half paycheck will be deposited by the 15th and you start using it to pay expenses beginning on the 16th. You'll need to make sure you save some of that first half money so that when you get your second half money, you have enough to pay your mortgage.

Also, I actually do my own planning with my actual bank account balances. But for public posting purposes, just assume your opening bank account balance is $0.00. In your own planning, start with your reall account balance. You'll see it go up and down and hopefully never get below $0.00. If it does go below $0, at least with a three-month budget, you should have plenty of warning and be able to take steps to avoid the overdraft.

-Dill

Dear Prosper Lenders,


NJNoiz and I have spent a lot of time organizing my financial situation so that I could both present my case as well as plan my next steps. The exercise on its own has been very enlightening and I have a new perspective on my financial future.

In response to the many suggestions I have created two separate views of my cash flow.

The first is a summary of my income and expenses. Note the transition from negative cash flow (as a result of the PDL?s) to positive - assuming a Prosper Loan ? the key component to my plan. This file also shows how I plan to use the loan.

The file can be viewed here: http://prosperlenders.wikispaces.com/space...FlowSummary.htm



The second file is a ledger format of my cash flow by transaction.

The file can be view here: http://prosperlenders.wikispaces.com/space...ledCashFlow.htm


The last file and in my opinion the most impacting, is my debt plan. NJNoiz showed me how to apply a portion of my free cash to payoff my debt entirely. Following this plan, I can eliminate all of my debt in 11 years!

The file can be view here: http://prosperlenders.wikispaces.com/space...ge/DebtPlan.htm


Thank you to all of you for your feedback and support. Please continue to send me feedback and ask any questions that will help you in your lending decision.

Mocha

Mocha and NJ...this is FANTASTIC work.

Mocha, this goes a long way to showing that your financial situation can be overcome. Kudos! I hope that lenders will have a bit more faith in your cause after reviewing all the information you've provided.

NJ continues to be one of the best things that has happened to our young group! Thanks NJ for finding new ways to participate and deliver results! Gold Star for the day...oh and the first SL t-shirt when we get them! ;)

Great work you two! My bidding funds clear at around 3pm (PDT), so I'll definitely kick in. I'm convinced that this loan would turn things around.

Even though it will take 11 years, according to your plan, to pay down all of your debt, I think you'll find that it actually can go much faster. Once you live with a positive cash flow for several months, you gain the confidence to predict exactly what you need to spend, and you'll likely be able to apply more to those balances as time goes on.

It makes all the difference in the world to have some peace of mind and a positive attitude, rather than the worry and depression that comes when things are out of control. Please, please, make sure you stay in control... for your own sanity and for your son's future.

-Dill

[QUOTE]

Thank you for your vote of confidence. I'm dedicated to getting things turned around. I. I agree that the time will go much quicker once I get into the swing of things. Peace of mind...I can wait.

Mocha

Mocha, NJ, Tommy -

What can I say? You guys ROCK! I'm in!

Mocha, hang in there. All the support you are getting from your colleagues/group members are simply outstanding - truly a reflection of the power of this community!

All the best to ya!

[QUOTE]

Thank you islandmele. I'm hanging!. I can see a light at the end of the tunnel. My support system is great. :)

Thank you, Tommy.

I spent quite a bit of time with Mocha both via telephone and email getting to know her and her situation. Given the level of effort that she has put into gathering and presenting this information, I must applaud her conviction to making serious changes in her life and looking to provide a sound financial footing for her family.

Mocha, I believe you will use this opportunity wisely and as such will place my bid once my funds have cleared on Thursday (if you haven't already funded ;) ).

All the best.

NJNoiz

BTW - This is my 100th post - Yeah!!!! :P