Prosper Loan Update

I have been aggressively paying my Prosper loan since July of this year. What originally was at $3,500 in June of 2006 was whittled down to $769. With the balance transfer offer that I received, I have initiated the payment that will pay off my Prosper Loan in full.

I know for sure that two of my Prosper lenders stop by from time to time. I’m not sure if anyone else does. In any case, if you are reading and were one of the lenders on my loan…thank you.

Thank you for believing in me and what I’m trying to do here. It meant a lot that normal people thought I was worth a shot because the banks sure didn’t think so back then. I think sometimes just the fact that someone believes in you helps you to succeed. In this case, you believed that I would pay back what was borrowed and you trusted your hard earned money with me.

Thank you again!

(For those interested, you can read all about my Prosper Experience in my archives.)

Posted by Tricia on October 7, 2007 at 9:43 AM in Prosper Borrowing | 8 Comments »
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spotsearch responded:
Posted: October 7th, 2007 at 4:23 pm
Hi Tricia,

Congratulations on paying off your prosper loan! You’re making excellent progress to becoming debt free next year. As my first prosper loanee, you’ve helped make the prosper experience a very positive and interesting one.
Mike responded:
Posted: October 8th, 2007 at 10:44 am
I’m always glad to find borrowers who had a good experience on Prosper. Well done!
Steve Herman responded:
Posted: October 8th, 2007 at 11:34 am
Great job on paying down your c.c. debt! I see you have $1,000 in savings…I DON’T recommend using a checking or savings account.
visit my site at:
and my blog at:
sincerely,
Steve Herman
Chris responded:
Posted: October 8th, 2007 at 12:49 pm
Yeah, don’t save money, open a home equity line of credit! Thanks, Steve!
Maria responded:
Posted: October 8th, 2007 at 2:16 pm
Mr. Herman,

Care to explain why you “DON’T recommend using a checking or savings account”? You can’t just post something like that and not explain why. What do you use as savings vehicles?
Chris responded:
Posted: October 8th, 2007 at 4:43 pm
Maria, I had someone on my blog selling this. Thankfully Tricia removed the links. It’s one of these new schemes where you open up a home equity line of credit and deposit your paychecks into it. The idea is to use any money you would normally have in the bank to lower your average daily balance on the loan, thus saving interest. You’ll often see it advertised as a vehicle to pay all your debts and your home in so many years. When you break it down though, it doesn’t save you much, and you pay fees to whatever company sets it up for you. Unless you spend significantly less than you deposit anyway, the thing doesn’t work. They have a good sales pitch, but when pressed for real numbers and facts, it falls apart. There were some news articles about this a while back.

After seeing all the sleazy websites that push this product, I think its mostly a barely-legal scam.
Raymond responded:
Posted: October 9th, 2007 at 4:11 pm
This is sooo interesting. Usually personal finance bloggers are on the lending end of Prosper. This is one of the few I’ve seen on the borrower end. Interesting!
little_earth responded:
Posted: October 9th, 2007 at 6:37 pm
I got trusted by people for a prosper loan, only I’ve let them down. Turns out I wasn’t the first to have crashed my groups rating, just the 8th or so….

I feel bad about it, but I emailed my group leader and emailed anyone who’s sent me anything about it explaining why. I hope to get it paid off as soon as I can, and hope to beable to lend on it someday…

So it is a good tool, but use it wisely. Any extra debt you take on, especially to relieve other debt, just means you are in debt longer, even if the interest rate is a little lower. Just getting it paid off, aggresively, is the best way to do it. I’m glad for the service though, it is certainly a better option than paydayloans or cashcall, or any of the other types of loan sharks….