5 Reasons To Consolidate Your Debts With a P2P Lending Loan

debt consolidation loan

What do you do when the money that came to your rescue turns into the debt that threatens to break you and it looks like a debt consolidation loan is the only solution? Maybe you went into debt because of circumstances that were beyond your control—health problems, a job loss, a personal crisis—or maybe you just did something stupid that you regret now. Now that you’ve reached the point where you’re determined to do something to fix the problem, it no longer matters how the problem came about. Maybe you borrowed the money with the intention of paying it back quickly, but you encountered more financial problems that led you to take out a second loan, or you had to open up an additional credit card because you needed more money. Now that borrowed money feels like a noose around your neck and you need a way out of the bondage of your debt. You wish you could turn the clock back and rethink that decision that seemed so sensible at the time. But the clock is ticking in the wrong direction, and you’re looking for a solution.

You want to start over: you need a single payment instead of multiple ones, and you want one due date for your payment instead of a calendar that leaves you dizzy trying to remember what bill needs to be paid by what date. Maybe you’ve already incurred late payment fees and you don’t want to have to deal with that expense again. A peer-to-peer loan is one financial choice that can give you more flexibility than a typical bank loan, and a Prosper debt consolidation loan is one of the few alternatives that gives you that option.

  • You might wonder what’s so inviting about debt consolidation loan through Prosper. Everyone in your family has always gone to the bank when seeking a loan. It’s practically an American tradition: when you need money, you go and ask the nice people at the bank to lend you some. Why should you be any different?

    Rephrase that question. There was a time when banks were the only option for a loan unless you could ask your more-money-than-he-knows-what-to-do-with brother-in-law for a helping hand. But you don’t want to do this; he’ll tell your sister, and she’ll tell the world and the last thing you need is for your financial struggles to end up on her Facebook page. Besides, you want to find your own way out of this financial quagmire, you’re not going to ask family members for help, and a bank loan just isn’t the answer. The nice people at the bank aren’t always so nice about lending money, and you don’t need the hassle. Especially if the odds are that your loan application is just going to be turned down. It’s not as easy to get a loan these days.

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    There are other avenues to pursue. Just because banks used to be where everyone went to borrow money doesn’t mean that you’re locked into old-fashioned patterns when there are modern options that can serve you better. That old map is worn out; your GPS is steering you in a different direction. Why shouldn’t you choose the financial path that’s right for you and your personal situation? Prosper, one of the top peer to peer lending websites, is the largest company offering peer to peer loans, which means that they have a package to offer you that your father’s bank can’t match.

    Here are five good reasons why it’s worthwhile for you to try to borrow peer to peer:

    Interest Rates that Don’t Soar

    You already know about high interest rates; there’s a good chance that one of your credit cards is carrying an interest rate that’s strangling your checking account every month. Peer to peer lending platforms have minimal overhead, so remember that these websites are easy on your wallet. You’re not paying brick and mortar expenses: no rent, no mortgage, no utilities, no paintings on the wall, no potted plants, no desk calendars. This means that you’ll benefit from the lower interest rates that they can offer because you aren’t paying for a lot of overhead. And if you have solid credit, you’ll be rewarded for your financial self-discipline because the rate will be specific to how well you’ve repaid your loans throughout your financial history. Instead of paying the penalties that are imposed on people who have flawed credit, you’ll reap the rewards of your pretty-as-a-picture credit score. Higher the score, lower the interest rate.

    Interest Rates That Stay Put

    Your peer to peer loan comes with an interest rate that doesn’t change. Remember that great introductory rate that you got on that credit card . . . and remember what happened when the introductory period came to an end? You’ve probably had bad romances that were easier to deal with than that interest rate that ran amuck. A debt consolidation loan with a fixed interest rate makes it much easier to plan your budget because the rate doesn’t change. Prosper will offer you an interest rate and a repayment schedule; if you accept, you’ve just taken your monthly budget from a runaway roller coaster to a stroll in the park. It’s worth noting that the smaller the loan, the lower the rate.

    The End is in Sight: Your Loan has a Fixed Term

    Getting a credit card to pay off some debt can, all too often, turn into a credit card that’s maxed out with a monthly payment that’s putting you right back in the financial rut you were trying to escape. But debt consolidation with your peer to peer loan is a plain and simple exchange: you borrow the money, you repay it. You’re not going to be yanked back into debt; the mechanism simply isn’t there. A 36-month repayment schedule means that you know exactly when your debt is paid in full and when that happens, you’re debt-free and the payment amount is back in your checking account. You and your peer to peer loan part as friends.

    No-Stress Late Fees

    In a perfect world, the calendar would be made out of Spandex. Miss a payment? No problem; the calendar just stretches a little more so that you’re not really late. In reality, of course, that late payment that you made to your credit card not only cost you the $30 late fee, but also probably increased your interest rate. Just what you didn’t need—an even higher interest rate. But that won’t happen when you’re working with Prosper. For one thing, the late fee is around $15, which is half of what you paid for your credit card late fee. But your interest rate stays the same. You can breathe easily knowing that your payment schedule still fits your budget.

    Peace of Mind Finances

    You know what the money worries are doing to you and your health, not to mention what they’re probably doing to your mental state. Are you unable to sleep at night, tossing and turning as you strive to figure out a workable schedule for paying this bill by this date so that there’s enough in the account to cover that bill that’s due on that date? You’ve been partnering payments, late fees, and frantic interest rates for so long that you just want the dance marathon to end so that you can sit the next one out. Your Prosper loan is your only debt consolidation loan dance partner, and the steps are easy to learn. The single payment is automatically deducted from your bank account, generally on the same date of each month. One payment, one date. Doesn’t that sound a whole lot simpler?

    No brick and mortar, a fixed interest rate, reasonable terms: by now you’re wondering if you’re dreaming or if someone found some very profitable real estate located at Rainbow’s End Lane. You’re not dreaming and there’s no gold at the end of the rainbow. The truth is that this dynamic innovation in finances is also a terrific opportunity to invest peer to peer. The people who are providing the financial backing for these debt consolidation loans aren’t Mr. & Mrs. Megabucks from Wall Street or six-figure CEOs; they’re ordinary men and women who are re-inventing the loan process as we know it, and turning it into a partnership. Prosper has been a way for investors to venture into a realm of the financial market that didn’t exist before. They benefit, you benefit, so that everyone is a winner.

    Credit cards have their place. Even debt has a role to play in our lives. The important thing to remember is that they shouldn’t own your life. Money is a tool, not a chain, and by consolidating your debts with a Prosper debt consolidation loan, your income is once again under your control. These five steps can take you from a financial nightmare into the sweet dreams of debt consolidation. Life doesn’t have to be an endless swirl of debt and worry. By taking advantage of the sustainable structure that a debt consolidation loan offers, you’ll get the chance to put your financial life back in order.

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