There are all sorts of crooks, scams, get-rich opportunities that people fall for to make money and most of those opportunities seemingly hurt others.
But what if you could earn a decent return by helping people to get out of debt at a lower interest rate, improve their credit rating and eliminate their debt at the same time? I know, it sounds like a fantasy but there is a real vehicle that allows you to do just that, LendingClub.
LendingClub is one of the things I make regular investments into, and you can too. To date I’ve invested in 117 loans to peers and as of today my rate of return is 12.02%.
LendingClub is a person-to-person lending network that is regulated and protected. People like you and me that can make investments that will help, through the network, to fund loan requests from others you elect to help. Basically what happens is the banks are cut out of the loop, lowering the rates for borrowers and increasing returns for investors. The only people that lose in this scenario are the banks.
The platform seems to be a win-win vehicle for people that want to get out of debt and for those that want to earn a better rate of return than is available from a standard savings account. As an example, as I write this savings account rates are 1% or less while my LendingClub.com return is 12%. Sold yet?
It is a home run for people with debt because they can payoff their current debt, in full, with a three or five year unsecured, lower fixed rate, debt consolidation loan. These loans are also reported to the credit bureaus so it helps to build credit as it is paid back as well.
Investor or borrower, LendingClub is worth a close look to help you achieve your goals.
This guest post was provided by the wonderful Steve Rhode at GetOutofDebt.org