Lending & Borrowing Money Outside of the Mainstream

@lvaldean (1612)
United States
August 17, 2008 11:01am CST
I am always looking for ways to earn money and stay out of mainstream "money lending" for the purpose of borrowing. One of the reasons for this is I was badly burned in my divorce many years ago which put me in the financial toliet for many years, in fact I am only now after 10 years finally climbing out. For those of us who have suffered through divorce, loss of retirement funds, job loss, home loss, high debt, medical bills, no insurance, and a host of other financially ruinous things there are other options today....they just are not well known. For those of us with a bit of spare money laying about who want to grow that money in unconventional ways, well there are also some options that allow you to put your money to work. www.prosper.com I have recommended this site in the past to someone who was looking for a loan. It is a great way to avoid banks, that will look at you as only a number. Prosper is people lending money to people. You have the opportunity to tell your story, it is more than just your credit score! Yes you still are rated on standard scores, yes you still have to pay it back, and yes the interest rate will still be based upon normal items such as your risk rating. But the likelihood of you actually receiving the money you need is much higher. For those that want to lend, it is an easy process. You can use the porfolio process or build your own based on emotional or pragmatic decision making. What do you all think of this solution to the credit crunch? Good? Bad? Indifferent? To high of a risk in this day and age or a good bet?
1 person likes this
1 response
@coffeechat (1961)
• New Zealand
18 Aug 08
Very clever! And appropriately positioned in the current market conditions. As a people to people market-place it brings technology to humanise the extension of credit in a win-win way. From the perspective of a Lender - you can take a small amount of money, make it available to a number of people to spread your risk and still earn a decent return. Awesome! And thank you for sharing the site with us. Cheers.
@lvaldean (1612)
• United States
19 Aug 08
It works fairly well from both sides of the fence. I have been both borrower and lender. I keep a blended profile of agressive and conservative lending thus spreading my risk. I occassionally will also do some real person to person lending when I find some woman who is just like I was 10 years ago, struggling with children, divorce, and debt. Love the humanity of the program. Also like the return on investment, actually consistently good - better than the market.
• New Zealand
22 Aug 08
It does aggregate to a potentially good return. I will have a try and see how it pans out. Thanks for the BR.