Recently I had a good friend call me for some financial advice about credit card debt. I’m not going to try and claim that I’m a certified financial planner, but I’m not afraid to offer my financial opinion. My friend has run into a situation that has become very common place among many Americans, mounting credit card bills. He was specifically wondering if there was an easy way to lower his interest rate and begin paying down the balance after his bank didn’t have any solutions. I suggested taking a friendly approach to financing and brought up peer-to-peer lending.
With the credit markets tightening and banks implementing strict lending standards there has been a surge in alternative forms of borrowing money. Quickly on the rise among unconventional lending networks is peer-to-peer lending. These lending networks are made of multiple investors, many times everyday individuals, who are willing to pool their money and lend it back to the general public in the form of short term loans. When an individual needs to come up with cash they can submit an application to the peer-to-peer lending website at which point the members who are holding the money to lend have the choice to fund the request or not. Often times people with less then perfect credit are able to get the money they need to pay off high interest debt such as credit cards or get a much needed car loan.
If you find yourself looking for a loan and have been turned down by traditional lending sources such as banks, you might find it beneficial to check out peer-to-peer lending sources such as Lending Club; It’s surprising the amount of financing that’s available on these networks not to mention the competitive interest rates that can be offered. It could be your ticket to finally getting a lower interest rate on your credit card and paying off your debt.