Videocrux - Lending Clubs helping students to pay bills and studies

#Videocrux - Lending Clubs helping students to pay bills and studies Lending Clubs helping students to pay bills and studies
Ryan Little used a similar site to get help paying off his student loan and credit card bills. He borrowed 10,000 dollars at an average interest rate of 12 percent. Ryan Little, Borrower for Lending Club, "The rates between the banks that I have looked at are anywhere from 5 to 7 percent more through the banks than it is actually with the Lending Club. I would say overall in 3 years it's probably going to save me about 3,000 dollars in interest payments alone, so." Little paid 200 dollars to register with the site and now has three years to pay back about thirty different lenders who elected to trust him with their money.
Peer-to-peer lending website to make extra money
This lawyer and mother of two has found a unique way to make extra money on the side: she gives small loans to private borrowers through a peer-to-peer lending Web site. Each month she collects the interest which averages around 18 percent. Elizabeth Colglazier, "I feel that I am helping other people in addition to getting a great return on my money and I do realize that it's risky but any investment you make is going to be risky. So, why not actually see who you are lending to and make choices based upon what they are doing with the money."
Elizabeth undertaking the business despite its risk
Elizabeth carefully selects the people she lends money to by checking their online profiles. She reviews their photos, jobs, credit history, and why they need the money. Elizabeth Colglazier, "I chose this listing because she had an emergency room bill to pay and I thought that was a good cause." So far, Elizabeth has lent a little over 3,000 dollars to 41 different people. She knows there is a risk she won’t be paid back.
The money lending involves huge financial insecurity
The company running the Web site verifies the borrowers’ identity and financial information, but it does not help lenders recover unpaid loans. John Vyge, Financial planner, "You have to treat this as a speculative environment where the chance of default is somewhat high. I mean, you are lending to other individuals. You don't have a banking system backing you up or backing up a loan." Similar to online auction sites, borrowers state the maximum interest rate they are willing to pay and lenders compete with their best offer. In the past two years this site has facilitated 175 million dollars worth of transactions among its 800,000 users.
Lending Clubs helping students to pay bills and studies
Ryan Little used a similar site to get help paying off his student loan and credit card bills. He borrowed 10,000 dollars at an average interest rate of 12 percent. Ryan Little, Borrower for Lending Club, "The rates between the banks that I have looked at are anywhere from 5 to 7 percent more through the banks than it is actually with the Lending Club. I would say overall in 3 years it's probably going to save me about 3,000 dollars in interest payments alone, so." Little paid 200 dollars to register with the site and now has three years to pay back about thirty different lenders who elected to trust him with their money.

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