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.
What is the proper measure for creditworthiness in this day and age?
Apparently, it is no longer simply the credit report or the verdict of one’s local banking institution. There are so many individuals who fall short of traditional standards of creditworthiness that the marketplace has naturally made room for non-traditional lenders. Besides the controversial subprime mortgage lending industry that most people are by now familiar with, there is a increasung trend in person-to-person lending organizations. Websites like Prosper.com facilitate lending transactions between individuals and other single or small group benefactors. Using such a service empowers people who may not otherwise receive loan funding to finance their dreams and goals.