Interest rates on credit cards are climbing and climbing ever higher before new laws kick in to stop that practice. But in the meantime while those with big balances they can’t pay off just watch their cards get ratejacked, I seriously think this is now the time to strongly investigate a fixed rate debt consolidation loan. But where can you really find them?
I personally like LendingClub.com as a source of loans. Just like one of the many average people that invests in LendingClub.com loans I really like it since most of the loans that I am an investor in are debt consolidation loans. It really makes me feel good that I’m giving people a chance they would never have from one of those bailed out big banks.
A few minutes ago I was logged in making another investment in more loans and I saw these screens and wanted to share them with you. On the screen below you can see the amount of money people have been investing to help others has exploded. Looking at the pie chart you can see that almost half of the loans granted are for debt consolidation. These LendingClub loans give people a fixed rate loan for up to three years.
This chart shows you the average interest rates applicants have been getting and the average FICO score of people getting loans. But the chart on the left showing demand is astounding.
If you look at the table in the graphic below you can see the interest rate spread by credit grade.
So if you look at the lowest credit grade, G, and the average interest rate for that grade you can see it is 18.10%. Now that sounds really high but when you compare that to the 29%+ rates people are waking up to find from their credit card companies on current balances, that’s a bargain. And if you have the best credit, the average rate right now is 8.61%.
So if you’re sitting on some high interest rates at least investigate the LendingClub.com offer and see if it makes sense to you. And I put my money where my mouth is. Click on this link for LendingClub and find out how I’d love to be an investor in your loan if you go that route.
Here are some of my fellow personal finance bloggers that have been writing about LendingClub.com as well as me.
- Flexo @ Consumerism Commentary
- Matt @ DebtFreeAdventure
- Silicon Valley Bloggers TheDigeratiLife