Blogging Away Debt wrote about the 7 things she did recently to cut her finance charges from $400/month to zero, and one interesting one was using a loan from peer-to-peer lending site Prosper.com to get a break on interest rates:
I decided to give it a shot to try to reduce our interest rates. It worked. Thirteen lenders bid on my $3,500 loan request and they reduced my interest rate from 13% to 9.9%. Another note about Prosper loans – they have a fixed interest rate! No more worrying about that interest rate magically increasing.
See, she used her Prosper loan to pay offer her credit card, swapping her interest rate for a lower, locked-in one. This can be a good tactic for the indebted to use, especially since credit card companies have become much more reluctant to reduce interest rates (and, in fact, for some time, many have been boosting interest rates on perfectly good accounts).
Seven Things We Did to Slash Our Finance Charges from $400/month to $0/month [Blogging Away Debt]
Prosper.com [Official Site]
PREVIOUSLY: Make And Take Person To Person Loans With Prosper