Comments on: Consolidate Your High Interest Debt With Lending Club

By: Matt Jabs

Matt Jabs — Mon, 04 Jan 2010 17:38:29 +0000

@L. Johnson: As Nickel said… I am currently borrowing with Lending Club. I consolidated 4 high interest debts into one loan with LC and have been VERY happy with the entire process.

Check out my entire experience by reading my Lending Club Review.

Make sure if you go this route that you only consolidate debts that have higher current rates than what you can get through Lending Club, and make sure you calculate out the interest savings for both routes.

For me I will end up saving about $500 in interest by consolidating with Lending Club, and that includes the $80 loan processing fee, so it was a really good deal for my situation – that is why I always advise people to follow the same route if it makes sense for their situation.

By: L. Johnson

L. Johnson — Mon, 04 Jan 2010 17:17:00 +0000

Thank you very much for clarifying! I am glad this is not a sponsored post, and I will certainly have to take a look at Lending Club.

By: Nickel

Nickel — Mon, 04 Jan 2010 16:44:56 +0000

Dan: Thanks for the catch. Yes, there should be a number in there… Fewer than 10% of all apps get approved/funded. As for LC vs. Prosper, I’ve heard horror stories about investing via Prosper. So far so good with LC, though I’m still being rather cautious.

As far as lender requirements go, I think it’s on the honor system. I don’t think they verify you assets or anything like that.

By: Dan

Dan — Mon, 04 Jan 2010 15:37:41 +0000

@Nickel

Lending Club says that they lenders must meet certain financial minimums before they can lend. Are these on the honor system, or are they enforced?

Also, there’s an omission in your post. You write “fewer than all applications get approved and funded.” While that statement is true, I’m sure you meant to stick an actual number in that sentence.

@Ben

As a former (well, I’m still stuck until July) lender on Prosper, I suggest that you don’t lend there. I was a guinea pig (er, early adopter) over there, and wasn’t pleased with the business model, the returns, or Prosper management. I haven’t given Lending Club a shot yet, but am waiting to see how the masses do before experimenting with my investments again.

By: Ben

Ben — Mon, 04 Jan 2010 15:24:40 +0000

Thanks for the post. I have been investigating Lending Club and its competitor Prosper as of late. On average, it seems are making a rate comparable to what you would historically on the stock market. Also, I think this investment strategy is a little more satisfying helping individuals meet their goals and it being more hands on than putting money in an index fund and forgetting about it.

By: Nickel

Nickel — Mon, 04 Jan 2010 14:40:38 +0000

L: Good question. We don't do paid posts on this site. As I said above, I'm an active Lending Club investor and have written extensively about that side of things. On the other hand, one of our staff writers (Matt) has used LC to refinance his credit card debt (link) and has been very happy with his experience. Thus, I thought it would be worth writing this up as a viable alternative to things like 0% balance transfer offers, which are getting harder to find and much more restrictive.

By: L. Johnson

L. Johnson — Mon, 04 Jan 2010 14:26:27 +0000

Lending Club is an interesting concept. I am curious, is this a sponsored/paid post?