If you remember, I was searching for a personal loan to consolidate our debt; four credit cards with high interest rates. Well, a lot has happened since then!

What Happened:

I ended up with $10,000, four cards and one retirement loan PIF’d by personal loans, and $1,600 sitting to deciding what I am going to do with it.

 

I have ADHD or a severe Type A personality; aka – I have a hard time waiting for something when I want it done now. LOL.

Here is the senerio:

• Listed personal loan request with Lending Club…
• Applied to Credit Union to see if the rates would be any better…
• Found out CU loan would be a 2-yr loan, no origination fee (save $186.50) a bit higher payment of $240, but would save me another $300 in interest over LC and I could get it faster.

 

Well, if you remember I just recieved a raise. Currently, we pay approx $200 on those 4 credit cards. An extra $40 a month is worth saving another $300 in interest to me. Discussed with husband and accepted CU personal loan (8 hours).

• Mind you… Lending Club fully funded my account in 16 hours with 85 investors!. That is fantastic for my peer-to-peer personal loan!

 

Originally, I was going to cancel my personal loan with LC upon receiving the CU loan. But I already verified my bank account for transfer of funds. Instead here is what my husband and I did (tis a smart move):

• My husband has a retirement loan that is costing us $441 a month with a total of $3000
• We PIF’d the retirement loan

 

Why this was a smart move.

 

Former Set Up:

4 Credit Cards	@$200 month	Total: $5000
Retirement Loan	@$441 month	Total: $3000
Total Payments	@$641 month	Total: $8000

 

New Set Up:

CU Personal Loan	@$240 month	Total: $5000
LU Personal Loan	@$164 month	Total: $5000
Total Payments	@$404 month	Total: $10,000
	Still have:	$1,800 sitting in bank

 

The Results:

We end up with an extra $200 per month to apply to our Emergency Fund or our Snowball Payments! We save over $1,000 in interest and cut our life of the debt by 9 months

 

So now the question remains…

We have $1,600 sitting in our bank. I may do one of two things:

• Save up another $1,100 to pay off my retirement loan of $2,700 or…
• Sit in the bank account and let LC to automatically withdrawl their payments as they will be doing

 

I could apply this as a partial payment to another card… I am not quite sure. What are your recommendations?

BTW, my experience with Lending Club was wonderful! I was quickly funded $5000 with a low interest rate and reasonable payments. I love that it could all be done online. Plus, their customer service is friendly – was able to answer all my questions with ease. If you compare a personal loan rates with your bank institution, you will realize that Lending Club offers very competitive rates. I highly recommend them. And do plan on becoming an investor when my debt tables are turned from ladened to free. 🙂

 

 

Click here to listen to my (1st) audio on Lending Club

I just talked with Rob (@robgarciasj) from the Lending Club. Let me tell you, it is a BRILLIANT program. He was generous enough to walk me through the whole program from Borrowing money to Investing money to becoming an Investor. He also talked to me about finding investors to fund a loan. It is great, great, great!

Okay, so here is my spiel: I am looking to take out a $5,000 personal loan for debt consolidation for four of my high interest rate credit cards, store cards. I decided to compare the Lending Club with my credit union for this purpose. Lending Club was able to get me a rate 2% lower than my credit union! I thought beating a credit union’s rate for a loan would be tough. Wrong.

Let me tell you how my experience went with Lending Club – easy! You simply type in your borrower’s information – the normal name, address, employer, yada yada yada. Within seconds – seconds – you get a layout of what how much you are qualified for, your payments, your origination fee, your APR, etc… In my experience, it is the fastest approval system I know of that can lay the terms out for you like that. By the Way, I was approved for 11.14% – not the greatest, but that is not lending club’s fault, but mine for my dorky credit history.

Then you have the option to list the loan – make it go live – requesting investor(s) to fund your loan. Your credit history is available to them on your loan page – how long you’ve been at your job, how long you’ve had established credit, last time you were delinquent – Oh ya, and you debt-to-income ratio, too! That was kind of cool. When listing your loan, although optional, you also put down a few sentences on why you would be a good candidate for that loan.

So, here it is: the loan went live this morning. Now its my turn to persuade investors. This is where it is cool to be an investor.

If you invest in my loan, you will make an 11.14% return on your money. And you can chose to invest in all or part of the loan request – it’s up to you. It reminds me of getting a CD, but with a much HIGHER return. In fact, I don’t know anyone that would have such a great return rate for this type of investment.

(Click the link, If you’d like to learn more about how to invest money at Lending Club. If you’d like to invest in funding my loan you can find me under – Money Funk Debt Consolidation | Member Loan#: 469546)

This is where I come in with the power of persuasion: Love me, Invest in my Loan! (haha).
I am hoping the power of social media and you will be my friend(s).

Invest my loan or help get the word out, Facebook it, ReTweet it:

RT @moneyfunk Looking for investors who want a high return rate on their money! http://tinyurl.com/yhv36bd Please RT
or
RT @moneyfunk Help Money Funk fund her loan! http://tinyurl.com/yhv36bd Please RT

As I see it – it is a win-win situation. I need a loan for my dorky debt so I can PIF my cards and destroy them. All the while, you (the investor) wants to earn a high return rate on your money.

I want to thank Matt Jabs (@MattJabs) at Debt Free Adventure for his positive feedback about Peer-to-Peer Lending with Lending Club. And Rob from Lending Club for taking me through the whole process – it is a fascinating program. Then Brad (@enemyofdebt) at Enemy of Debt for making me really realize that that I don’t want credit cards anymore – I just want to obliterate them!

Also, last – this is my first audio presentation to you. Hi! Thank you for listening or reading my home endorsement and visiting my site. I had a lot of fun with this. And no gimmics, I think Lending Club is really cool as a borrow or an investor.

To find out more information:

Borrowers:

Investors: