On a recent trip home, my Dad told me about how he sent a co-worker to my website a few months ago. It turns out that that his co-worker had taken one of those 0% financing offers from a major electronics retailer for twelve months. What they didn’t know was that if they didn’t pay off the entire bill in full, they would be subject to all the interest due from the 0% period. I warn against this common fine print “gotcha” in my warning on 0% financing offers.
Anyway, the period was about to expire, his co-worker was about to get socked with a big interest payment and a higher rate, and they didn’t know what to do. My dad told them about 0% balance transfers and they were able to secure a twelve month reprieve, now paying it off regularly as they should’ve done in the first place. My dad told me that he had no idea how my site was popular until that point because he saw it help someone and how happy they were to find a five-minute solution to a problem they’ve had for weeks.
I had the same experience in watching a video about peer to peer lending service, LendingClub:
The video really opened my eyes to peer to peer lending the same way my dad’s experience with his co-worker opened his eyes to my website. This is a site that is helping people when they have no where else to turn to. The two minute video profiles an Army medic who found himself owing his employer four years in pension payments in one lump sum payment (not sure how that works but that’s how they described it, awfully nice of his employer!), and he needed to find $16,000! Through LendingClub, he was able to get a loan.
The amazing part about the entire story was the graph charting online lending’s progress. In 2005, online lending was a $118 million market. In 2008, it’s 1.55 billion. Yes, BILLION. They believe it will go to six BILLION by 2010. Regardless of what it gets to in 2010, it’s clear that this isn’t some fad that will fizzle away in a few years.
I want to start lending but it turns out Maryland isn’t on the list of places eligible to invest in notes. Shucks!