Comments on: Prosper Loan Update

By: little_earth

little_earth — Tue, 09 Oct 2007 22:37:48 +0000

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….

By: Raymond

Raymond — Tue, 09 Oct 2007 20:11:06 +0000

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!

By: Chris

Chris — Mon, 08 Oct 2007 20:43:45 +0000

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.

By: Maria

Maria — Mon, 08 Oct 2007 18:16:05 +0000

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?

By: Chris

Chris — Mon, 08 Oct 2007 16:49:39 +0000

Yeah, don’t save money, open a home equity line of credit! Thanks, Steve!

By: Steve Herman

Steve Herman — Mon, 08 Oct 2007 15:34:11 +0000

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

By: Mike

Mike — Mon, 08 Oct 2007 14:44:01 +0000

I’m always glad to find borrowers who had a good experience on Prosper. Well done!

By: spotsearch

spotsearch — Sun, 07 Oct 2007 20:23:55 +0000

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.