P2p single dating
Lending Club reports that 67.60% of loans on its platform or to consolidate loans, including paying off credit cards.As the nearby graph reflects, 48.96% of borrowers used the proceeds to refinance existing debt, while 18.74% used the loan to pay off credit card debt.But P2P loans are usually fixed-rate loans, that extend no more than five years.Based on the survey responses from borrowers who received a loan to consolidate existing debt or pay off their credit card balance, the interest rate on outstanding debt or credit cards was reduced from 22.1% to 14.7%.There are three major advantages to using a P2P loan to payoff credit card debt: Lower interest rate.If you have excellent credit and can get an interest rate below the average rate you’re paying on your credit cards, using a P2P loan (“peer-to-peer”) can be a solid option to consolidate your credit card debt.Refinancing existing debt and paying off credit cards are the top reasons for P2P loans.
If you have excellent credit, you can easily refinance double-digit credit card debt into a single P2P loan.This will not only lower your interest expense, but it will also reduce the total cost of servicing your debt over the long-term. This is an often underestimated advantage to using a P2P loan.The best way to eliminate credit card debt is to pay them off as quickly as possible.However, sometimes debt consolidation can be a useful tool as well.The motivation behind these consolidation loans is to reduce interest rates.
Lending Club conducted a survey of 46,885 randomly selected borrowers from October 1, 2014 – October 1, 2015.