Peer to Peer Debt Consolidation
There is a new thing that is quickly becoming popular among
groups seeking debt consolidation loans. It is peer to peer
lending and it is basically based on the idea that we all help
each other get loans for what we need in a kind of paying it
forward kind of way. Groups of people get together and they loan
people money. It operates the same way as a bank in that you
will pay interest on the debt consolidation loan, or any loan
that you get from the group.
Some of the more popular ones are Prosper Marketplace and
Lending Club. You can get a debt consolidation or any other kind
of loan that the groups offer, and they offer the same deals as
many banks do where you can choose from unsecured or secured
loans. According to Prosper Marketplace roughly 45% of their
loans have been for debt consolidation reasons. However, that
number has been steadily increasing for that number is now up to
59%.
They think that with the credit card companies charging such
exorbitant rates for their cards that many are trying to pay
them off and get debt free. So they turn to get a debt
consolidation but the banks won’t lend to them. So they turn to
the peer to peer groups as many times they will give someone a
loan when no one else will. They say that they have seen a large
increase in debt consolidation and other loan inquires since the
recession hit as well.
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