Tuesday, February 27, 2007


I read this article yesterday and it was pretty interesting. For most people I guess it could be seen as a way to borrow some money. Prosper.com bills itself as the Ebay of loans, meaning that it puts borrowers and lenders together depending on who offers the best deal.

Let's say I want to lend someone 1000 dollars and want an 8% interest rate on that loan. I go out there and look for someone with decent credit that has a history of making payments. There's a certain level of risk involved, as with any investment, but if you diversify and have a lot of money to lend, you can get a pretty good return on your investment.

Now, I know that most people will probably look at this as a way to borrow money, not lend. But the first thing I thought of was that this is a great way for people like me to make money. People who have mastered the basics of personal finance, are saving money, and aren't irresponsible spenders.

This is how people like me can make money the way credit cards make money. And borrowers who want money don't have to pay ridiculous 25% rates to get some extra money. They even have to list what they want the money for, which, you know, take that with a grain of salt.



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