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I’m Lending Money to People So They Can Consolidate Their Debt. Want Some?

I’ve written in the past about They are a peer-to-peer lending network where people just like you and me lend money to others and cut the banks out all together.

I had $375 that was available in my account to invest so I just logged in and reinvested it. Since I was last on the site they’ve made some improvements which make it easier to fund notes as an investor.

And as an investor myself. I’m pretty happy with the returns so far. As of today my investments have returned 11.38%. Try getting that kind of money back with extra money in a savings account.

Now, I never invest money I am not prepared to lose nor money I need to get to right away. So be careful about investing cash you need to get your hands on in an emergency. While there is a process to cash out, it’s not instantaneous.

Lending Club Investment Screen

Now when you want to invest you can easily select the approach you want. This is an example of the loan mix for the ‘more aggressive’ investor.

Lending Club Loan Mix

The next screen shows you more information about the loans suggested when you click the ‘more aggressive’ button. As you can see, some are a higher risk than others. The LendingClub site tries to balance out the suggestions to manage risk for you.

Also notice the average interest rate is 16.65% but on these higher risk loans the default rate is higher also, 4.85%. That’s why your overall return is projected to be 11.08%.

For me, I actually put half my investment in the ‘more aggressive’ category and half in the ‘more conservative’ category to balance out the reinvestment.

While the interest rates are higher on the higher risk loans these are typically debt consolidation loans that people with some credit blemishes could not get elsewhere. I’m willing to give them a chance.

So if you are interested in becoming an investor like me, or want to borrow money, check out LendingClub for yourself. Let me know what you think about it in the comments below.


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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Ted

    Last night I set up a loan request with Lending club. I am really impressed. Already I have 10% funded after 12 hours. It is a true thrill seeing people invest in you. I love the fact that people from around the world get my interest money instead of Mr bank around the corner. Plus, the 10.99% rate I received is better than anywhere else I could get right now. Thanks for the post!
    .-= Ted´s last blog ..Insurance fun! =-.

    • Steve Rhode


      What’s the URL of your loan request and I’ll help fund it.


  • Leo

    This is absolutely amazing and mind-bending! If only this had existed 6-7 yrs ago, we may have avoided or solved the credit crunch!!! The fact that people can lend to each other without a Bank or Credit Union is such an innovative and needed concept, and I applaud you for putting your money where your mouth is! Go Steve!

  • Damon Day

    Hey Steve, nice write up. I have been checking out Lending Club since you mentioned it to me a few weeks ago. In fact I am in the middle of writing an article about how impressed I was with them after I checked it out. Of course this hacker thing taking out my site put everything on the back burner this week.

    I think lending club is an excellent place for people with better than a 660 credit score to apply for sub 25K loan and it is also an awesome place for investors to get a great rate of return and help out fellow consumers at the same time.
    .-= Damon Day´s last blog ..Debt Relief USA files Bankruptcy – Clients get Burned =-.

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