Prosper.com – A Good Place To Consolidate Credit Card Debt?

Prosper.com a good place to consolidate credit card debt?

I received an email regarding my earlier introduction post about Prosper.com and whether it would be a good place to consolidate her credit card debt:

…I have a little under $10,000 in credit card debt where I’m paying about 27% interest on three different cards. The payments are killing me and I’ve been trying to consolidate them at a lower rate, but because my credit rating isn’t good, I can’t get a lower rate card to transfer the balances to.

I saw your post about Prosper.com and I think this would be a good way for me to pay off the high interest credit cards and be able to pay a lower rate. That is what Prosper is for, right? To get loans like this…

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3 Responses to Prosper.com – A Good Place To Consolidate Credit Card Debt?

  1. lizriz says:

    Hi,

    I’m wondering what you think of the whole “group” thing on Prosper… it just kinda seems silly, although I could see it potentially working.

  2. pfadvice says:

    I think it depends on how the group is formed and time will start weeding out groups that have been set up merely to generate money – becasue those groups will likely have some defaults making it costly for people in that particular group to borrow.

    Groups that are set up by true group entities I think can lower the risk of default by that “peer pressure” if you know all the people in the group.

    I kind of view it like feedback on ebay. You can’t trust it completely, but looking over the history of the feedback (in this case group) you can get a sense if it is trustworthy or not by the length they have been around and the number of borrowers who paid back the loan in full.

    It will be interesting to see how it all sorts itself out…while proper has a head start, when Zopa USA goes live, it will be interesting to see which one has the better model.

  3. Pingback: Journey To Financial Freedom » Carnival Of Debt Reduction #23

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