Peer to Peer Lending Increases in Popularity

Online, April 16, 2010 (Newswire.com) - Peer to Peer lending is the term for borrowing amongst friends, and sometimes you don't yet know those friends. Coastal Credit Solutions, as experienced credit counselors, has recently launched a Peer to Peer Lending service to help consumers through the process.

The last few years have really brought the financial industry under a lot of scrutiny and the general public has become rudely awakened to how the lending world works. This education has left many wondering why it is so complicated to borrow and lend money.

Likewise, as the banking industry began its freefall, websites that help individuals borrow and loan money around the world sprouted up. The initial purpose of these websites tended to be for credible business people in impoverished countries to borrow small amounts of money to help them increase their businesses. The lenders would be paid back with interest and walk away knowing that they helped someone in need.

For many Americans, the idea of borrowing money from their friends and relatives has become more of a necessity to make it through the current recession. Luckily the structure of peer-to-peer lending is already in place and financial service organizations such as Coastal Credit Solutions are ready to help.

Brian Blackburn, Director of Operations for Coastal Credit Solutions, explains, "We saw many of our existing customers with these un-conventional loans and how they were benefiting from them. Banks really tightened up on credit, so many people had to start asking around for help."

That help came at the right time for many. Blackburn adds, "the obvious benefit for the borrower is to be able to maintain their accounts and cash flow, while the lender makes a steady interest rate on the principal."

The lenders are not always someone that people know. In many cases, a third party is playing matchmaker between lenders and borrowers. Coastal Credit Solutions helps their clients navigate through the decision making process.