WASHINGTON (AFP) — Saddled by student loans and credit card debt, Ryan Little was looking for relief. Like many, the 30-year-old insurance agent turned towards banks for a loan but he ended up finding a much better deal elsewhere, on the Internet, through a website called Lending Club (lendingclub.com).
Little eventually borrowed 10,000 dollars from 30 people he didn't know and had never met through Lending Club, a "peer-to-peer" or social lending network.
"The rates between the banks that I've looked at are anywhere from five to seven percent more than it is with Lending Club," Little said.
"It ends up being quite a significant amount of money depending on how much you are looking to get per year," he said. "I would say overall in three years it's probably going to save me about 3,000 dollars in interest payments alone."
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