5 World Changes Caused by Peer-to-Peer Lending
A completely new way of communicating has become possible thanks to social media. An adjustment in thinking has occurred on every level thanks to this brave, new world. One of these changes is peer-to-peer lending. Here are 5 ways that peer-to-peer lending is transforming society today:
1. Unconventional
Peer-to-peer lending is disruptive in every way; it tests the stability of the financial system and gives you more control over your finances. We are developing new opportunities for your money to grow by choosing an unusual path. You can now use your pay check as leverage to invest in others, generating a new source of income. What’s more, it firmly returns control to you and removes it from the banking system.
2. So Social
To launch new initiatives, make investments in one another, and ultimately earn better returns, people come together. It emphasizes the needs of the individual investor more. You can either invest in a great idea or fund local projects that will benefit the people and communities nearby. You help not only yourself but also others by jump-starting your career. It’s similar to borrowing and lending money to friends and family, but you get a better return!
3. Debt Control
Consolidating your debts is just one of the many reasons to borrow money from peer-to-peer lending websites. To consolidate credit card debt, people can choose a personal loan with lower interest rates, which will lower their monthly payments and help them pay off their debt faster. Comparatively to a personal loan, credit card debt can also hurt your credit rating.
4. Spreading the Wealth
Peer-to-peer lending offers a different type of investment from the standpoint of the investor. You can make informed decisions without filling a suit’s pocket by having direct access to the credit instruments without the use of a middleman. This broadens your portfolio and increases the return on your investments. The deals you decide to fund should also be diversified. You can balance your portfolio by distributing your investments among loans with high risk and high reward and those with medium risk and low reward. If a person has a lower risk score, for instance, you can invest more in them and less in those who have a higher risk score.
5. Choose Your Own Adventure
Why place money in a savings account that you will never touch? With social lending and taking charge of your finances, you can succeed so much more. You can examine and contrast the credit histories of the people you are lending money to, then decide which projects you want to invest in. In the end, it is up to you to decide if you want to use a platform like RainFin to launch causes you care about and thus affect positive change in the world.
