P2P lending...should I do it?

**jpg7n16** · 07-13-2011, 07:26 AM

If you did the P2P lending and have bad/medium credit, you'll probably end up paying nearly 10% anyways.

The best way to get out of debt, is to pay as much as you can as soon as you can. You want to make the biggest payment each month that is possible for your situation.

Up the size of your payments. Sell stuff, and put that money towards the cards. etc.

Another option might be to transfer to a 0% card: but your payments would have to be pretty large to make it work. I did a quick scenario of 0% for 8 months, and 21% after. Your payment would have to be over $550 just to make the math work. Though if your payment size is around $1000-1250, you could save about $535 in interest.

How much do you have available to pay off the debt each month??

**Quoc414** · 07-13-2011, 07:34 AM

I have about 1390 to pay each month...

**BMEPhDinCO** · 07-13-2011, 07:36 AM

It's not a bad idea - have you pulled your credit score recently? If your score is above 720, you could probably get a lower rate. But if you have a low score, it won't help that much. Another option is to call the companies and ask them to lower the rate, especially the credit union.

If you were going to do P2P, I would suggest getting enough to pay off everything, so you have less bills to worry about keeping track of, and then freeze the cards until you pay it all off.

Also, if you list your budget, people can help figure out how much extra you have available to pay and how best to pay each of those.

**Quoc414** · 07-13-2011, 07:44 AM

My score is 718...Lendingclub denied me, Prosper only offered $4,000

**bjl584** · 07-13-2011, 08:28 AM

Originally posted by Quoc414 View Post

Right now i have about 13,000 in debt with a Credit Union at 10% interest rates...I'm thinking of ways to pay it off faster, one of those is to borrow some or all from like lendingclub.com with lower interest and consolidate my 13,000. Is this a good way?

My Debts:

Credit Union: Balance :$13,342 at 10% min. pymt $378
Credit Card 1 : Balance: $9411 min. pymt $170
Credit card 2 : Balance: $5075 Min. pymt $75
Student loan: Balance : $8500 Min. pymt $92

Total unsecured loan: $36,328

Gross Income: 2000

Expenses:
Car insurance: 160
Comcast : 60
Cell Phone : 122
Rent : 450

What's your suggestions?

What did all of this debt come from? Are you still currently using the credit cards? I've seen people consolidate their debt only to turn around and max all their credit cards out all over again. I wouldn't try to refinance any of this. I would start snowballing it. Start with highest interest rate and work your way down, or start with the highest balance or the lowest balance and work your way through it. There are several ways to do it. People have arguments for the different methods, but any of them will work so long as you are disiplined enough to stop using credit. You can learn more here:

Debt-snowball method - Wikipedia, the free encyclopedia

**Slug** · 07-13-2011, 09:54 AM

Why not try? Give it a go. There's nothing unscrupulous about Lending Club or Prosper from the borrower side.

**jpg7n16** · 07-13-2011, 03:11 PM

Originally posted by Quoc414 View Post

I have about 1390 to pay each month...

No you don't. From what you edited above I got this -

Income: 2000

Expenses listed above:
Car insurance: 160
Comcast : 60
Cell Phone : 122
Rent : 450
Total: 792

Net: $1208

Then....

Food ??
Utilities ??
Household goods (like toothpaste or toilet paper) ??
Gas ??
Other ??

Equals something much less than 1208.

Then you have the required debt repayments as is, which further limit the amount you'd have to put towards the 0% balance transfer.

It might work for the credit cards, but not for the 10% loan.

So.... what interest rates do you have on the CCs??

**Quoc414** · 07-13-2011, 06:08 PM

0% on one card and 14% on the other

P2P lending...should I do it?