With the evolution of credit and debit cards, one would wonder why one take so long to ascend to riches. The two items allow one to spend some money you don’t have at the moment, what one needs is to have a clear source of income. In most cases the credit card comes with a charge varying from the institution that issues them.

Levels of unsecured lending in the UK currently stand at 0.2 trillion. Unsecured loans are a convenient, highly regulated way to borrow money. The problem is that borrowing money has been too convenient. This has resulted in high levels of personal debt, creditor harassment, loan defaults and bad credit for millions of struggling borrowers.

Prosper operates on a completely different basis than banks. It is a peer-to-peer lender which means that people lend money to other people. The fact that individuals are doing the lending has made the unsecured loans market vastly more efficient. Chris Larsen, co-founder of Prosper, stated that “This previously one-sided control has bred inefficiencies and […]

Generally, individuals are advised to be debt-free if possible. In most cases this is a good idea, since the interest rate one pays on any debt is far higher than that gained from savings accounts. Therefore, in the majority of instances it is better not to have any savings until all debts are paid. However, student loans are an exception to this rule.

Whether you know it or not, your credit rating affects your life. Be it a car loan, a mortgage, or a start-up loan for a business, the credit score that lenders pull up when you come in looking for financing tells them whether they should a) give you an easy ride, b) take out the […]