Lately I’ve been very impressed with LendingClub.com and the peer-to-peer model that they have developed to let individual investors participate in some small way in making loans to other people that need to borrow money. The LendingClub business model allows both borrowers and lenders to skip the banks completely and lend to each other.
From the advertising revenue from this site and with cash from my pocket I just invested in 33 loans to help people to get out of debt. Most of these loans were to consolidate debt or some other purchase or task around the house.
Matt Jabs, a blogger friend of mine was recently a borrower. I asked him to share his experience about what it was like for him from the borrower side.
Over the course of the last 7 months borrowing and debt have become cuss words in the Jabs household… not to mention consolidation loans! The idea that I would ever borrow again seemed an unthinkable concept that caused a spike my blood pressure by simply considering! Then I stumbled upon LendingClub.com.
If you follow my writing on Debt Free Adventure or Five Cent Nickel then you should be painfully familiar with my opinion of paying interest to big banks! When I read that LendingClub was “social lending” from person to person my interest was piqued and the entrepreneur in me perked up instantly. What a concept! Borrow money from other individuals at a lower rate, pay off my big bank loans, and pay my interest to other individuals as opposed to the bloated and corrupt bankers I have learned to abhor. I was sold!
I signed up with LendingClub, completed their quick & easy loan application process and had my $11,000 loan funded in less than 2 days! It was a win/win/win for me. I lowered my rates, consolidated my debt to one payment, and began paying interests to “people” rather than “bankers”. You can see my story broken down into more detail by visiting my “My Review of Social Lending Through Lending Club”.
Lastly, this format worked for me but be sure to consider all variables before choosing your own path since everyone’s situation is different. Do your research, then do what works for you. For me borrowing through LendingClub was a winner hands down!
If you are looking for a place to invest your money for a far greater return that you can get from just letting it sit in a standard savings account, consider investing some, not all, with LendingClub. And if you are looking for some resource from which you can borrow some money to consolidate your debt, take a look at LendingClub.com and see if you don’t agree it is an offer worth pursuing.