Online Payday Loans: A Person-to-Person Industry
By J.J. CameronPayday Loan Writer
It's not difficult to track down online payday loans. Companies abound on the Internet. Many of these services, however, charge unfathomable interest rates, an APR in the triple digits. What's a consumer in need to do?
Consider Prosper.com. An online marketplace, this website is bringing individuals in need together. It's akin to a dating service, with money taking the place of love. Instead of dealing with lenders that charge such high interest rates on their payday loans, you can work out a deal with another Average Joe.
Prosper bills itself as an Internet-age alternative to such creditors. The system, which has been in operation since February, could be considered revolutionary and unrealistic - stranger are meant to meet and executive legitimate transactions in an anonymous environment. It's similar to eBay, but with large amount of cash changing hands.
If this experiment succeds, the credit industry would be in trouble. Borrowers who've denied on the payday advance market could find money at reasonable interest rates. Right now, Prosper takes a small cut of the deal. (Borrowers pay 1 percent of each loan and lenders pay .5 percent on the money owed to them.)
