Microloans or peer-to-peer lending is a new alternative to going to credit cards and banks for loans. Real people can see your real circumstances. Some people are able to pay off p.ayday loans with BEYOND astronomical rates. Others start businesses, fix their cars, renovate their homes, consolidate current debts, etc.

Any United States adult with a credit score 520 or above, can create a listing for a loan. Many lenders (the individuals), bid personal funds to fund a loan. Prosper makes the loan, and assigns a collection agency in case of problems.

If you are not in the United States, there are some other possible options (Zopa, Kiva, Grameen Foundation), but I have not personally checked them out yet as to how they work, and I will.

At the time of this writing, I have bid three times and won, for Prosper loans, and have another 7 about to go through. For a lender to bid small amounts, cuts their risk. A lender can choose how to invest their money as the rates are varied. TIP: Be wise. Just like in the brick and mortar world, don't lend to someone who doesn't look like a good risk.

Below is the information about Prosper:Prosper-related:

http://www.prosper.com/
http://forums.prosper.com/
http://lendingstats.com/
http://www.ericscc.com/
http://www.rateladder.com
http://www.baldeagleloans.com/borrow/borrow001.html Microcredit articles http://www.socyberty.com/Economics/Micro-credit-Povertys-New-Lifeline.18032