Is an ad for a personal loan in the classifieds legal?

[RickVS]

I am an unemployed professional that when fully employed earns low six figures. The economic crash was particularly difficult on my space, which is selling technology to Wall Street. I was unemployed for 10 months, then underemployed for another 10 months, then when the company started losing money, I was back to being unemployed since October 2010. Over this time my wife and I went through our savings and then racked up high interest debt to the tune of about $25K. I have 3 very good prospects now for employment that will pay six figures again. However, this is my difficulty. Starting one of these jobs will require upfront expenses for travel and misc. expenses, that while reimburseable, will have to come out of my pocket first. And given that unemployment has kept us in a state of very real poverty, I have no money. I have no working credit card. And the payments when I am employed on 25K with interest rates as high as 28% are going to be burdensome. So given all of that, here is my question:

Is it legal to place a classified ad in a couple of newspapers that would say something like "10% Return on Your Money! Instead of paying 28% to creditors, I would prefer to pay YOU a guaranteed 10%! Contact me for details."

The details of course are that I am a seasoned professional with a solid work background making good money. We would work out a payment plan over a few years. I can be looked up on LinkedIn and I would be open to providing whatever documentation short of a SS# to lend credibility. I could also provide a credit report. I can't go to banks since I have little collateral and my credit rating would probably be an issue.

So again, have you heard of anyone doing this? I'm not thinking of someone helping out that would just be financially comfortable. I'm thinking about someone with a large portfolio that might want to diversify a bit and help someone out at the same time.

I am seriously thinking of doing this if I am offered a position over the next two weeks as I expect. What do you all think? Feasible? Crazy? (Also, no family/friends money available).

Thank you for your thoughts. And please, no spam responses from loan sharks, check cashers or lending companies.

Rick

[bjl584]

I've never heard of anyone doing this in particular. But, you described yourself in such a way that leads me to belive that you are extensively networked. Why not present your idea to another professional or venture capitalist that you have relations with? You will probably get farther that way than placing an ad in the paper to total strangers that don't know anything about you or your track record.

[disneysteve]

Why not seek a loan on Prosper.com?

Putting out the ad is probably not legal because it probably runs afoul of banking laws.

[Slug]

I agree with DS. You should check out Prosper and Lending Club to see what kind of rate you could get there.

Another option would be a HELOC if you own your home.

[disneysteve]

Originally Posted by Slug

Another option would be a HELOC if you own your home.

No way OP is getting approved for a HELOC with no income and a ton of credit card debt.

[jerrycates]

I do not think I have seen one like this before. But if you are really determined to go for it, try the business loan in banks. There are even some who offers loans for small to medium business entrepreneur.

[RickVS]

Thanks everyone for the input. I contacted my local Citadel Credit Union and it looks like they may be willing to loan me the full amount of my $8,000 minivan based on a confirmed job offer and acceptance. My primary need is to have upfront money for business travel, and this addresses that problem.

As to networked professionals? I don't want to crap where I eat, if you know what I mean :-)

Thanks!

[Joan.of.the.Arch]

That was smart to go to your credit union. I sure hope this will work out for you. It would be such a shame to have to pass on the job because of not having the money to front for initial expenses.

You have demonstrated yet another reason for us to build up a healthy savings for those rough spots in life.