About two in five American families can’t pay their credit card bills, carrying over a median of $3,800 a month, according to a 2015 Pew Charitable Trusts study. Many drag around far more debt than that.
An increasingly popular solution is peer-to-peer lending. Lending Club and Prosper, the two largest peer-to-peer lenders, are online platforms that directly connect debtors with investors. By cutting banks out of the lending process, they claim to offer lower rates and better terms to borrowers.