December 20, 2011 07:00 ET

Peer-to-Peer Lending Provides Financial Alternative for Consumers Facing Holiday Debt

P2P Lending Offers Fixed-Rates, Fair Pricing and No Pre-Payment Penalties

SAN FRANCISCO, CA--(Marketwire - Dec 20, 2011) - This year, the average consumer will spend $7041 on holiday related purchases., a peer-to-peer lending marketplace for personal loans, advises shoppers to spend responsibly. When added to existing debts and the variable interest rates of credit cards, the extra expense of holiday shopping can become overwhelming. Debt consolidation loans represent 51% of all loans on Prosper, and have shown consistent growth over the past 5 months.

Peer-to-peer (P2P) lending can replace high credit card interest rates and constantly changing monthly payments with lower rates and fixed, predictable payment terms. Data shows that even as consumers were preparing to spend money on gifts for this year, more than 14.1 million of them were still paying off holiday-related spending from last year, up from 13.6 million in 20092.

"Unfortunately, millions of Americans will likely incur thousands of dollars in high-interest credit card debt as a result of over-spending this holiday season," said Chris Larsen, CEO and founder of "Instead of continuing the cycle of expensive, variable, revolving credit, a P2P loan can be a much more affordable way for consumers to lower their costs, improve their personal balance sheet and eliminate debt."

For consumers tired of the high cost and variable rates of credit cards, P2P lending delivers a transparent, fixed cost without prepayment penalties. Prosper lets consumers consolidate their credit card debt into a lower, fixed rate personal loan that can be paid off in 1, 3 or 5 years.3

Credit card penalty pricing terms can cause the interest rates of even prime borrowers to increase to 30%. And, as many consumers have found, the true cost of a credit card often comes in the form of onerous over-limit, late or other fees that can be as much as $35 each time and add up to significant and burdensome costs.

Interest rates on start at 6.59%4 APR for best borrowers. Fixed rates range from 6.59% to 35.84% APR. For more information, visit

About Prosper
Prosper Marketplace Inc., a peer-to-peer lending marketplace that brings together creditworthy borrowers with individual and institutional investors, allows people to invest in each other in a way that is financially and socially rewarding. Individual and institutional investors invest in minimum increments of $25 on loan listings they select. In addition to credit scores, ratings and histories, investors can consider borrowers' personal loan descriptions, endorsements from friends, and community affiliations. Prosper handles the servicing of the loan on behalf of the matched borrowers and investors. Prosper was co-founded by Chris Larsen, co-founder of E-LOAN. Prosper has raised $83.85 million in venture capital and is backed by financial and technology luminaries including, Jim Breyer of Accel Partners; Tim Draper of Draper Fisher Jurvetson; Jerome Contro of Crosslink Capital, CompuCredit; Omidyar Network; Capital One Co-founder Nigel Morris of QED Investors; Court Coursey of TomorrowVentures; Larry Cheng of Volition Capital.

Notes offered by Prospectus.

1 National Retail Federation:
2 Consumer Reports:
3 For example, if you have an A Prosper Rating and no previous loans and take out a 5-year $10,000 loan, your APR will be 18.31% and you will have 60 scheduled monthly payments of $245.32 (your final payment may vary slightly due to rounding).
4 Based on one year personal loans made to first time borrowers with an AA Prosper Rating. To qualify for an AA Prosper Rating, applicants must have excellent credit and meet other conditions. APRs by Prosper Rating range from 6.59% (AA) to 35.84% (E) for first time borrowers. Repeat borrowers may qualify for discounted rates. Rate offered is based on Prosper Rating and other factors, and your actual rate may differ. Eligibility for a loan is not guaranteed and requires that a sufficient number of investors commit to fund your loan. Refer to Borrower Registration Agreement for all terms and conditions. All loans made by WebBank, a Utah-chartered Industrial Bank.

Contact Information


Keyword Cloud

View Website