Prosper Rocks!
By Ryan Healy | March 6, 2008
Last week, I wrote about how I had applied to borrow money through Prosper to consolidate my two worst credit card balances. My goal was twofold: reduce the number of outstanding balances I have and reduce the interest rate I pay.
I set up my loan request on a 7-day auction. I started the bidding at the recommended 15.66%, which was ultimately bid down to 11%. This literally slashes my interest rate in half. One of the balances that will be paid off is currently charging 22.74%; the other balance is charging 20.99%.
Not bad for a couple hours of my time.
Here’s a screen shot of the auction listing summary…
There were a total of 427 bids, which seems to be many more bids than the average listing receives. This is probably also why my interest rate was bid down so much.
Bottom line: I’m happy.
If you haven’t researched Prosper, you might check them out.
If it’s your first time listing an auction, the minimum amount of time you should list for is 7 days (in my opinion). This will give you time to verify your bank account and jump through the other “identity verification” hoops. (If I had listed less than 7 days, I’m not sure I would have been able to provide all the documentation in time.)
Oh, and one last thing: if you have any questions about my experience with Prosper, feel free to leave a question below. Just click on “Comments.” Thanks.
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Topics: Case Studies, Credit Cards, Reviews | 13 Comments »
13 Responses to “Prosper Rocks!”
Comments
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March 6th, 2008 at 3:49 pm
My money didn’t transfer in time to bid, but I see that you did just fine without it! I’ll go with another safe investment – me :) I’ve paid off about half of my prosper loan and its soon to be the next major target of my debt snowball.
Congrats and thanks again for the referral – I’ll link back to your site from my ‘March Challenge’ once the funds come through.
March 7th, 2008 at 7:13 am
Congratulations on the successful prosper listing. I am a bidder on your loan and was impressed by your blog and dedication to paying down your debt. I wish you continued success.
March 7th, 2008 at 9:32 am
Amanda – No problem. Great news that you’ll be paying off your Prosper loan next!
Kyle – Thank you for bidding on my loan and helping to drive down the interest rate. I really appreciate it! :-)
March 8th, 2008 at 12:16 pm
Very interesting – this is the first post I’ve seen from a borrower – a great story! (as long as the credit cards stay in the closet).
Mike
March 9th, 2008 at 2:22 pm
Glad you liked the story, Mike! Yep, that’s the trick. Cut up the cards so they don’t get used anymore.
March 10th, 2008 at 7:49 pm
[...] Reduction Formula details how he consolidated his high interest credit cards by borrowing from Prosper It was good to a read a post from a Prosper borrower and see that side of the [...]
March 11th, 2008 at 5:07 am
The Carnival of Debt Reduction is Up
Ana @ debt-free Revolution hosted the Carnival of Debt Reduction. She highlighted my dumbest purchase ever post. Some other posts that caught my eye:Prosper Rocks! @ Debt Reduction Formula – Ryan re…
March 13th, 2008 at 9:59 pm
Ryan,
I too am a lender on your loan. I like that you have been so serious about eliminating your debt as evidenced by your blog.
The main reason I bid on your loan was that you have shown through your blog your innermost finances, a subject which most Americans don’t like to talk about, even to family and friends.
It’s a little disheartening that talk about money even trumps the bounds of friends and family. I’m happy to read that you’ve taken your debt elimination public – taking it head on with no looking back.
Please remember that us Prosper lenders are just ordinary folks scattered across the good ol’ US. We don’t have the cash reserves and billion dollar holdings that most banks do. We are, well, just like you.
Most lenders are in fact just like you – dedicated to responsible personal finance and doing what is right as opposed to what is most convenient. Our dedication to personal finance has created the opportunity to be on the opposite side of this transaction. My wish is that you too will one day afford the opportunity to become a Prosper lender yourself.
My bid on your listing was a vote of confidence in your dedication to debt reduction.
I wish you the best, and look forward to your Prosper loan payoff and future Prosper lending career…
LC
March 14th, 2008 at 4:15 pm
Hey LC – First, thank you for bidding on my loan. I realize that Prosper lenders are all individuals, which personalizes the loan. I feel better about repaying folks like you than I do repaying a credit card company.
I’m also glad that it’s a fixed interest rate loan that can’t be manipulated, as CC companies often do with interest rates.
I hear you about it being disheartening that so few are willing to talk about money. We might all be a little wiser if parents, friends, and relatives talked about money more openly.
Thanks again for dropping in and leaving such an encouraging post, LC.
Ryan
March 14th, 2008 at 6:09 pm
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March 15th, 2008 at 4:50 pm
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May 16th, 2008 at 5:13 am
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