Many People with bad or no credit use Pay Day loans to get through a short cash flow crisis. These Pay Day loans often charge 10 to 20% per week. People to People Lending a New Company on the internet can help you get out of the Pay Day Loan Merry Go Round.
People to people lending is auction like online loan service. It was created by the founder of E-loan. The Concept is very simple it is people helping people. It enables borrowers and lenders to free themselves from the Mercy of the Bank. Why place your money in the bank at 5% or less only to have them loan them to credit card users at 20% or more.
People to People lending gives you the ability to lend the money directly to those who need it at rates of return from 7% to 25% or more based on the Credit standing of the Borrower.
As a Borrower you can request any amount you want from $1,000 to $25,000. You also pick the interest rate you are willing to pay. They do have interest guidelines they recommend that you use based on the loan amount and Credit Rating. A person with an E-Rating which is one of the lowest ratings wanting to borrow the minimum of $1,000 should expect to pay between 20 and 25% interest. This is for a fully amortized 3 year loan with no prepayment penalty. You would actually pay less then $40 a month for a Thousand Dollar Loan at 25%.
If you currently have a balance with a payday loan company why not borrow $1,000 at 25% at prosper.com and pay off your pay day loan. Take whatever money is left and pay down your People to People loan and then continue to pay $40 a Month until your loan is paid.