From Grant Wasylik, chief analyst, The Palm Beach Letter:
“Direct lending is going to be the biggest financial innovation since the automatic teller machine (ATM)…”
That’s according to former U.S. Treasury Secretary Larry Summers. He spoke at the LendIt USA Conference I attended in NYC last month.
The March issue of The Palm Beach Letter showed readers how to earn safe 6-8% income returns through “direct lending”—by becoming investors on our favorite P2P (peer-to-peer) lending platform.
But it’s also a great deal for borrowers.
For example, a Fox Business reporter just refinanced six different credit cards with one P2P loan. The platform found him a lender of $15,000 in two days. He received the cash in five. The transaction lowered his borrowing costs to 9% (the best “brick and mortar” bank offer he received was 13%).
If you want to free yourself from credit card debt, you can now take out a direct P2P personal loan to lower your payments.
Consider these benefits. You can…
- Secure a significantly lower rate from a P2P loan than what you’re currently paying. One leading P2P lender reports that its customers are saving an average of 32% over their credit card interest rates.
- Trade a variable interest rate (where your rates and payments can rise) for a fixed rate. Your new loan becomes more predictable and easier to manage.
- Consolidate multiple monthly bills into one monthly bill.
- Avoid the “minimum payment trap,” in which you make small payments over years. (You end up paying mostly interest, while your debt remains the same… or even grows.)
- Increase your FICO credit score. (FICO models tend to view loans from direct lenders more favorably than revolving balances, like credit cards.) One P2P lender reports 77% of its customers see their FICO score increase after getting a loan. These customers see an average FICO score bump of 22 points.
P2P borrowing is fast and simple to get started. You can check your rate in seconds… apply in less than 10 minutes… and, if approved and funded, your loan amount should hit your bank account in one to two weeks.
Now, not everyone will be approved for a personal loan. And not everyone can save on his or her rate. However, checking your rate on most P2P lending sites is fast and free, and it won’t “ding” your credit score (click here to test).
We’re not encouraging you to take on more debt. But if you need to refinance, P2P lending may be a great option for you.
Reeves’ Note: Grant pulled some strings and arranged a special “cash bonus” offer with our P2P platform of choice. If you’re a current Palm Beach Letter subscriber, click here to collect your reward.