I don't think people are taking 30% loans to pay of 20% credit cards.
First, browsed through a decent number of Prosper listings, but don't recall seeing people asking for rates of 30% of seeing too many listings close at that high of a rate.
Second, a lot of people will actually list their current credit cards that they are trying to consolodate along with their rates. So as a LENDER, if you'financing such a loan, you aren't particularly bright youself.
If you're smart about what loans you pick and aren't throwing money at E grades with high DTI's simply because you think you can get 20% interest, then I'm sure you're not going to see a 20% default rate in your personal portfolio and can still get a decent rate of return.
First, browsed through a decent number of Prosper listings, but don't recall seeing people asking for rates of 30% of seeing too many listings close at that high of a rate.
Second, a lot of people will actually list their current credit cards that they are trying to consolodate along with their rates. So as a LENDER, if you'financing such a loan, you aren't particularly bright youself.
If you're smart about what loans you pick and aren't throwing money at E grades with high DTI's simply because you think you can get 20% interest, then I'm sure you're not going to see a 20% default rate in your personal portfolio and can still get a decent rate of return.