Zopa??

jamesd

_bankrupted, available rates increased last year. It's what caused me to change my opinion that Zopa was a bad deal for lenders. Now it's more variable, sometimes good, sometimes less good. Hasn't yet gone back to really bad. Might at some point, though.

So long as banks are asking high rates for loans and such there will also be borrowers who find their best flexible loan deal at Zopa. Still going to be many people who don't need a flexible deal or who can get a better one elsewhere, particularly for larger loan sizes.

CoogarUK, if I recall correctly debt consolidation is the most common reason for loans at Zopa. Certainly seem to be quite a few people who are getting a better deal than they had. I'm always happy when I see debt consolidation as the reason for a loan because I know that the person is almost certainly better off as a result of a lower rate (or they shouldn't have taken the loan...). Can always speculate that they might have been able to get a better deal somewhere else, though.

CoogarUK

jamesd wrote: »

CoogarUK, if I recall correctly debt consolidation is the most common reason for loans at Zopa ... I'm always happy when I see debt consolidation as the reason for a loan...

jamesd, always the contrarian I cringe each time I see debt consolidation as the purpose for a Zopa loan, especially those pitched at the maximum loan limit of £15k.

My view is that the majority of that type of borrower has simply saddled themselves with too much debt already and the only way out they can see is to take even more debt in a futile attempt to get themselves out of a pickle of their own doing.

Ultimately they stand to go bust, saddling their lenders with yet more bad debt.

jamesd

Sadly some will do that, though I certainly hope that most are being sensible and saving money while repaying.