Credit card refinancing

Borrower Member Loan 483207 | Lending Club Prospectus

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Amount Requested
Loan Purpose Credit card refinancing
Loan Grade D2
Interest Rate 14.96%
Loan Length 3 years (36 payments)
Monthly Payment $779.55 / month
Funding Received $22,500 (100.00% funded)
Investors 320 people funded this loan
Note issued on 2/18/10 1:16 AM
Note Status Fully Paid
Loan Submitted on 2/5/10 10:14 PM

Borrower Profile

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Loan Description

Borrower added on 02/05/10 > I am requesting this loan to pay off high interest credit card balances:

Macy's Visa $9,600 @ 26.99%
Chase Visa $7,300 @ 29.99%
Wells Fargo Visa $5,500 @ 25.24%
Borrower added on 02/06/10 > To FairLenderUSA, I didn't fully answer your questions, "Is the rest of the debt new and now showing up on your report?" No, Macy's Visa is not new debt. That account was opened in 2003. I really don't know why the credit report isn't showing that balance.
Borrower added on 02/07/10 > To Member_569427, I misspoke about the LC loan paying all of my CC debt. I forgot to account for the $1012.50 LC fees that's taken off the top. There will be about a $1000 cc debt left-over, if the $22500 LC loan is funded.

Questions & Answers

Q: What is FDR Management LLC and what is your position with them? Thank you in advance.
A: (02/06/2010-04:16) - FDR Management owns and manages restaurants and nightclubs in Las Vegas. I'm a Staff Accountant and have been with the company for 2.5 years.

Q: What is your position at your company? What does your company do?
A: (02/06/2010-04:19) - I'm a Staff Accountant. FDR Management owns and manages restaurants and nightclubs in Las Vegas.

Q: Do you plan to keep using your cards? What's the plan? Thanks
A: (02/06/2010-08:55) - I plan to keep one card open for emergencies and close the rest. It took a long time for me to get here. Aside for approx $7K spent on medical and the approx $2K airfare/motel associated with it, everything else was just frivolous spending throughout the years. It's time to pay this off. My goal is to be debt free in 3 years.

Q: Do you plan to still use your credit cards? Thanks
A: (02/06/2010-18:26) - Yes, sparingly, if possible. I plan on closing Macy's and Chase and keeping Wells Fargo Visa (that still has a 25% interest rate) but I'm going to keep it for emergency purposes.

Q: What is your plan to ensure you don't accrue additional debt while paying this loan off?
A: (02/07/2010-12:51) - I'm cutting up 2 of the credit cards and ONLY using the Wells Fargo card for emergencies. It was stupid and reckless of me to have racked up so much debt at such high interest rates. And I would like to think I’m wiser now (a little less stupid). My priorities have changed. The plan: $3000 take home pay ($4375 gross less taxes/medical/benefits/retirement contribution). $2800 expenses, $2400 of it set up to be paid automatically. Everything else will be cash/debit card transactions. I’ve never asked anybody for a loan before. I’ve only dealt with cc companies and banks. Asking people for a loan to refi credit card debt is truly, truly humbling. I don’t plan to go through this again in 3 years. Also, this is probably where peer pressure comes in as a positive. Currently, as I’m typing this, there are 39 people who’ve entrusted their monies to me. I have no intention of pissing off 39 people. It’s bad for my soul.

Q: Your credit report reflects a revolving credit balance of $12,749.00, but you are asking for $22,5000. Is the rest of the debt new and now showing up on your report? Good luck!
A: (02/06/2010-18:06) - I don't think the Macy's Visa balance of $9600 is included in the credit report. Please note, my Debt-To-Income (DTI) is closer to 18.28%

Q: Is there a reason you have not stopped using the cards already? Thank you in advance.
A: (02/07/2010-09:48) - In 2008, it wasn't good for me health-wise. In 2009, economy-wise, it wasn't good for me or anybody else. No bonuses, no cost of living raise, no 401K match. I‘ve minimized cc usage, but the payments I make aren’t making much of an impact because of the high interest rates.

Q: Will this loan pay off all your CC debt? What payments do you currently make each month (paid not minimum owed)? What are you other monthly expenses (rent, car, utilities, etc)? Thanks for your answers...
A: (02/06/2010-20:08) - Yes, the loan will pay off all CC debt. My Monthly Expenses are about $2,800. $1,000 rent (live with parents), $222 car insurance, about $75 gas, $90 utilities, $166 cable/internet, $400 food/entertainment, $825 credit card payments ($325 Macy/$300 Chase/$200 Wells Fargo). The current $825 cc payments will be replaced by the $780 LC loan payment.

Q: does anyone else at your residence bring home a pay check? any other monthly payments you haven't listed such as alimony, child support, etc. also revolving credit is 12749 and salary is 4375 monthly or am i reading that wrong? would like to help.
A: (02/08/2010-21:26) - Well, I live with my parents and they have their retirement, BUT this is my mess-up to fix. So the only income reported is mine. There are no alimonies, no child support, only my salary of $52,500 a year ($4,375 a month gross/$3,000 net). The revolving credit is actually $22,500. Somehow, the credit report isn’t showing the $9,600 Macys at 26.99%. So please note, if Debt-to-Income (DTI) is one of that factors you look at before investing, my DTI is actually closer to 18%. Thank you so very much.

Q: Your parents charge your $1000/month in rent?
A: (02/10/2010-00:14) - Strictly speaking, they aren’t “charging” me rent (they didn‘t ask for it nor do they require it from me). I give my parents $1000/month for my upkeep. I would have a rent/mortgage payment if I lived somewhere else. I think it’s only fair that I pay for my share of household expenses. It’s a set amount each month so it’s simpler to say “rent”.

Q: As a Las Vegas resident with an intimate knowledge of the sadly depressed state of the rental market here, it seems incredible to me that you'd pay your parents rent and upkeep of $1,000 a month, when you could get your own decent-sized place for that or less, including utilities. Do you consider Las Vegas only as a temporary stopover?
A: (02/13/2010-11:55) - According to Applied Analysis as reported by the Las Vegas Sun on 02/03/10, average rent in Las Vegas is $770 (depending on location, ranging from $660 to $941). So I basically pay a $230 premium. But you have to consider the intangibles…home-cooked meals, someone doing laundry, someone taking care of you after surgery…that’s absolutely priceless. The gist is, the support they provide is immeasurable. I think $1,000 a month in rent/upkeep is just about right. And to answer your question, no, Las Vegas is not a temporary stopover. I like it here. Where else can you go grocery shopping at 3 in the morning? I am concerned about the water supply though. Will there be a Lake Mead in 10-20 years?

Q: Can you provide some info on the debt you are refinancing - amount, rate and current monthly payments you make?
A: (02/14/2010-10:13) - Macy's Visa $9,600 @ 26.99% Chase Visa $7,300 @ 29.99% Wells Fargo Visa $5,500 @ 25.24% My payments: Macy $325 / $224 goes to interest Chase $300 / $192 goes to interest WF $200 / $ 92 goes to interest Out of the $825 I pay each month, $500 goes to interest. What I'm seeking is assistance on the interest rates. The rates the cc companies are charging are, I think, usurious. And it's not just me. They're hiking interest rates and charging ridiculous new fees (like non-usage fees) on a lot of people. It's revolting. With this loan, my interest payment would be $182/month averaged out (total interest/fee throughout the life of the loan is $6,576.30). That is sooo much better than the $500 interest I currently pay each month. These debts will be paid off whether it's at 29% or 14%. I take my obligations seriously, my credit history proves that. I have no delinquencies, no defaults, no bankruptcies. But this loan at 14.96% would help immensely though. And your assistance is greatly appreciated. To the lenders who've entrusted their hard-earned monies to me so far, I am truly grateful. Thank you so much!

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"The interest rate on my loan through Lending Club is a third less than what I was paying before, and it’s very satisfying to know that there is an end date for being done with my debt."