Are you looking for a downpayment for a new home, to consolidate your bills, or to pay off high-interest credit cards? Or how about lending money to people that banks might otherwise not consider, but who could be a great source of additional income to you. Many people who would like to start a business are often discouraged as they are unable to locate banks that are willing to take a chance on them. Peer-to-Peer lending
has started to fill this void and provide microloans that will allow them to market and grow their businesses. There are some ways to make your money online.
1. Prosper – this is an online community of lenders and borrowers consisting of everyday people. They provide an assessment of the person based on your credit score, but you get a chance to explain yourself. If you are interested in becoming a lender, you can apply and then choose the people or person you would like to lend the money to. The site suggests spreading your money around so that you get a good return for your money and are less likely to have to send a collection agency after them. This site offers a win-win situation for the lenders and the borrowers.
2. Payday Loans – There are several different kinds out there (just do a Google search). I don’t recommend that you use them on a regular basis as they charge between $25 and $50 per loan. The loan is based on the amount of money that you make per paycheck, and they can usually advance the money up to the amount of one paycheck to you. Payment is usually due by your next paycheck and is automatically deducted from your account.
3. Fundable.org – Another peer driven lending organization that collects 7% of the funds collected as a fee once the goal is reached. You can use the money for anything that you choose. There is no real benefit to the contributors though, unless the group leader decides to specify one.
4. Zopa – Another peer-to-peer lending group, offers lending and borrowing opportunities. Currently based in the UK, they are working on a US site.
5. Duck 9 – Another lending group that focuses predominantly on working college students.
The innovative solutions will continue to grow as people look for alternative, affordable ways to raise money for their businesses and get out of debt. These options listed above are not new, but have been utilized in developing countries for years to help educate children, pay for weddings, and build homes. West Indians call thems sousou, Kenyans call them Harambee (hah-rahm-beh) but they are where family and friends come together and put money into a pot or basket for the person, item or occasion. The money is then used for its intended purpose. The only difference is that the money does not need to be repaid. This is a great way for the community to get involved. Good luck with your businesses and debt consolidation.