Last May, I heard about a fascinating person-person lending site called Prosper. The basic idea is that, by going around the banks as middlemen, lenders can get higher interest rates and borrowers lower ones.
Of course, the lenders pay for that risk with a higher chance that your loan won't be repaid.
I figured I'd give it a whirl, with a grand total of $150. So far, so good. My average rate of return on loans is 16.27%
I started a group for friends/colleagues/acquaintances.
The benefit is that you have a bit of a trusted network to start with...no guarantees, of course.
Take a look, join my group, and start making...or saving some money.
There's also a good article in SmartMoney that highlights the pros...and cons (literally!) of the site. This isn't for everyone, but could be of interest to some.
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