Australians are using peer-to-peer loans to consolidate their debt
New data from P2P lender RateSetter shows an average loan of $20,666.
Peer-to-peer (P2P) lending, while having first been introduced in 2012, is still a new concept to many Australians. However, the idea seems to be catching on. The P2P lending space is becoming more competitive, with new lenders being announced all the time, and more Australians are starting to take advantage of the competitive rates on offer. According to new data, these rates are being utilised by borrowers looking to reduce the interest they're paying on current debts.
P2P lender RateSetter has released an update of its loan book data, which contains details of every loan originated since 2014. Previous updates, which were released by the lender in the name of transparency, have offered fascinating insights into who is applying for P2P loans, what rate they're receiving and why they applied for the loan.
RateSetter's latest update is showing that the majority of borrowers are applying for loans to consolidate their debt. This is supported by data from finder.com.au, which places three P2P lenders – RateSetter, SocietyOne and MoneyPlace – in the top 20 lenders people opt for when looking to consolidate their debt over the past 12 months*.
The infographic below shows the breakdown of what people are applying for as well as insights into the people consolidating debt through RateSetter.
*Based on data from Google Analytics over the period 16 October 2015 to 16 October 2016.