Person-to-Person lending basically cuts the bank out of the picture and people lend directly to one another. Zopa adds a twist to this by guaranteeing the funds that the lender is adding to the system. The funds the lender adds are backed by an NCUA insured CD. This does make the return lower than other peer-to-peer lending services, but it also means you can’t lose your principal.

For the lendee, the rate you receive should be much lower than what the bank would offer you. Zopa advertises Interest rates 50% lower than the big banks on Personal Loans, Small Business Loans, Debt Consolidation Loans, and more. Get a Free Quote.

If you have a home, you can also look to a 2nd Mortgages to provide some necessary funds for debt consolidation.