[Seeker]

Originally Posted by kswag934

Here's my situation... I am self-employed and don't have enough capital at the moment to get where I want to be. However, I am very confident that given a 6 month window with the correct assets, I'd be able to accomplish my financial goals.

Current savings/checking: $800
Savings/checking on May 1st: $5000
CC #1: Limit of $2000, balance of $1900 - VISA
CC #2: Limit of $2000, balance of $1900 - Mastercard
CC #3: Limit of $2000, balance of $700 - Best Buy
CC #4: Limit of $600, balance of $550 - Macy's
Total debt: $5050
Total monthly living expenses: $1500
Work capital needed: Several thousand, I haven't pin pointed a $ amount yet - say $5000 to be safe

With the "correct" assets, that you "haven't pin-pointed a $ amount yet" you'd be able to accomplish your financial goals?????

Hmmm. On May 1st, you'd have 5k in your current savings/checking... yet, that's what you pin-pointed? Hmmmm.

Two of your credit cards are pretty much max'ed out at the moment. Total debt: little over 5k.

A lot of matching numbers here. Maybe you should take that 5k and repay your two max'ed credit cards?

It wasn't but 6 months ago that I had $9,000 saved up and no debt but I decided to open my own business due to the lifestyle I want to live. Well, I got lazy and now I'm in some trouble. I checked my score on FreeCreditScore.com and I still have a 700 according to 1 report. I have NEVER had a late payment on anything and prior to 6 months ago, my balances were always in great shape. However, I was told this is a fake score and my score is probably much much lower.

Hmmm. Who told you this? Have you already been talking to someone about taking on a personal loan?

What interest rate are you paying on the CC's?
Have you even looked at interest rates on personal loans?

Wanting to "live a lifestyle" and having the determination and dedication and yes even the one-track-mindset that starting up a small business requires, are two very different traits.

You will probably be spending a whole lot more time with this activity than you would with working for someone else. And we are talking probably more than 40 hours per week. Startup and Setup maybe even more than 60 hours per week. It's not something you can afford to be "lazy" with.

My goals are as follows:
- Gain consistent income through the marketing plan I have created using the funds from a personal loan.
- Pay off all debt to 1-9% of the balance (I hate not knowing if I can use a card nowadays because of the worry it might overdraw.)
- Live comfortably on my $1500 monthly living expenses for the next 6 months before I can get the business booming. I need a buffer of a few months because I can't expect a return RIGHT away.
- Buy a home in early 2009!

My questions:
- How much money should I look for in a loan? - What kind of payment could I expect to have monthly?
- Will this help my credit score?

The only thing that improves a credit score is maintaining a good repayment policy and not being late with payments.

- Where should I attempt to get a loan from? I understand due to lack of consistent income, I would not qualify for DTI reasons on a high personal loan. I also heard (correct me if I'm wrong) that they look at your high credit on your cards for eligible personal loan amounts.

HOWEVER, I believe I can get my father to co-sign for me. He makes a lot of money and the DTI won't be an issue at that point. He also has 700+ credit.

I'm only 22 years old and I'm trying to get my life started here. Please help me with any and all advice. Thank you in advance!! I'll be checking in here very frequently because I need to make a move soon!

Just because your father makes a lot of money and you may be able to get him to co-sign, does not mean that you should. Question for you: If you defaulted (we're unable to repay your loans to whatever lending agency), how would you feel when they approached your father for repayment?

That is a possibility, so you need to answer that question for yourself.

Until you've worked in whatever business, it would be rather difficult for you to see how the real world works. Owning and running your own business is hard, hard work. Adults who know what they are doing, fail at it. The ecomony is rather bad right now, and IMO your first priority should be to get to a point where you've cleared your debts. You should work for someone else doing this plan before attempting it on your own.

Good luck.