Borrowing from Lending Club just got cheaper
From Lending Club:
“We have reduced our interest rate for borrower loans by 50 basis points, effectively decreasing a borrower’s interest rate by 0.5%.“
What does this mean for you? Simple… when you borrow from Lending Club your interest rate will be approximately 0.5% lower than it would have before. This is great news for those who were on the fence about borrowing from Lending Club.
We borrowed from Lending Club
In case you were unaware, we consolidated our high interest debt with a Lending Club loan and will save over $500 because of it.
Here are the loans and their respective rates that we consolidated with LC:
- Auto Loan – Capital One @ 10.5%
- Credit Card 1 – JP Morgan Chase @ 14%
- Credit Card 2 – Capital One @ 16.25%
- Credit Card 3 – Citigroup @ 19%
The resulting loan we were able to secure through Lending Club was for $11,000 at 9.23%.
I am almost never a proponent of borrowing money, but if you can consolidate your high interest debt and save money then you would be a fool not to.
Follow these debt consolidation rules…
If borrowing from Lending Club to consolidate debt sounds like a good idea for your situation MAKE SURE you follow these rules of debt consolidation and repayment:
- Have a game plan to repay the debt.
- Do not take on more debt.
- You have not paid off the debt until you actually pay off the debt.
- You can consolidate at a lower rate than all existing loans.
- Always speed up debt repayment.
Here is a more detailed look at these debt consolidation rules.
If these five rules sound doable and you can save money by consolidating… then go for it. I did and I have no complaints.