Dallasnews.com – Many consumers use social lending to pay off credit cards, according to a report issued last December by Javelin Strategy & Research in Pleasanton, Calif., which conducts research on financial services.”Although it is a relatively new concept, the demand for paying off credit card balances through P2P loans is substantial and could arrive at approximately $159 billion in funded loans by 2012,” the report said.

“At this early stage, higher-income and younger consumers are the most active users, but that will change as the number of P2P lending communities in the U.S. increases and awareness spreads.”

The recent credit crunch has driven more people toward peer-to-peer lending.

“You’re seeing a lot of creditworthy people who used to have lots of options who have really been limited,” Mr. Larsen said. “We’re seeing those people now come to Prosper as another alternative. It’s really changed the type of customer we’re seeing.”

GreenNote allows students to ask for student loans.

“This is a way for a student to tap into their social network, their extended network of family and friends, who may be interested in helping them in their cause for education,” said Akash Agarwal, GreenNote chief executive. “The student creates a profile and invites people, and our system takes over.” Read Full Artice