Bypass the bank for lower APR

A while back I read a post on Lifehacker about social network Prosper.com.
The website allows people to post their financial need and people can bid on the option to loan the money out.
So let’s say you’re paying 29% on a $2000 credit card debt. You’d like to stop paying bank interest and get your debt paid off quicker.
Sign up for Prosper, post your needs ($2000) and see how low you can get your interest rate. People wanting to make money (who doesn’t) and willing to take a risk on you and your credit will offer you a lower rate. Your interest rate could drop substantially.
Multiple people may bid on your debt and once you meet your goal your monthly payment is deducted from your bank account and distributed to the people bidding on your debt.
Lifehacker posted an update today on a less risky means to borrowing and lending money – try a family member.
Blogger Clayton Cramer paid down a charged up credit card with an interest rate of 18% by paying a family member instead of the bank. His sister gave him a loan at 14.5% APR and he was able to double his payments, paying his debt off in half the time and his sister was able to make some substantial money.
Not a bad idea for either party. Just don’t lend out your cash to anyone and don’t let it ruin your relationships with family or friends.