Save The Endangered Species (American Middle Class) With P2P Lending!

“It is the tendency of the social burdens to crush out the middle class, and to force society into an organization of only two classes, one at each social extreme.” –William Graham Sumner

Taking the present socio-economic conditions in purview, I agree with the above wise words of William Graham Sumner. Come any adversity, the middle class is the most affected. In the present sluggish economy, the middle class seems to be an endangered species heading towards fast extinction, as many experts predict. A member of the American upper middle class, a good job, steady income flow, a good apartment, a budget holiday, and health insurance were my much achieved perks. I would sleep peacefully at night resting my head on the pillow of security. But now, I’m rudely awakened as the present phase of financial downturn has pulled away the pillow from under my head! Its good that I’ve woken up! Otherwise, I’d have injured myself by hitting my head hard against the hard cot of poverty. Now, I need to review my economic situation to save myself the oncoming ordeal of living a dog’s life strongly compromised in materialistic acquisitions. It looks as though I need to push myself into either one of the extreme categories- either I elevate my status to the affluent class or fall into the abyss of poverty. Well, since my wits have not taken leave, I think, obviously I‘m going to try to be the former.

Gone are the days when the government morality would ensure the middle class population with free perks. You could avail public transportation at subsidized fares, would get free medical care, get huge scholarships on educational courses etc. To start with, predicting the impact of the present healthcare reform is like predicting the outcome of a casino game. It’s so, very uncertain! Till the time the health care reform comes into effect its pretty difficult for one to really gauge its impact, though it seems to be quite promising. I can sense that in the coming times, the free benefits are going to be minimal. So what then? Does this mean, unable to maintain my present lifestyle, I’m going to be sucked into the poverty quicksand? Well, it does look it .Unless I do something about it.

Now, looking at the economic scenario from the perspective of the upper limit of the middle class strata, the point that demarcates the beginning of the rich class, things as usual, seem to be brighter than earlier. With everything going global, the rich seem to be having a Midas touch! Thanks to the stark contrast. People like me who are on the threshold can dare to cross over to the elite side with a little effort.

Here are some measures that I intend to take in that direction. I’m dissolving all my long time liabilities, because times being uncertain, my concept of getting any profitable returns from such investments remains negative. I need to increase my savings and make investments in short term profitable ventures. Even long term planning for education and joining courses that are expected to give high returns is not such an advisable option. I won’t save up for or take up a course that costs $100 K which promises to give me $ 30 K after three years. What if I have to compromise with a $ 20 K job after the said period?

Though it’ll take some good struggle, a middle class American of today has no option but to avail the opportunities to become rich and try his/her best to become so. Now, the current government policies, the democratization and the available market tools create the conditions for prosperity, so you better not lose it. Cut off all apprehensions about market honchos. It looks like they’re sure to go.

As you leap into the new elite strata pull up other middle class people too from the rut. Use your richdom to support other less-richer people and help them with financial stability and security. One of the best ways in which you can do this is by investing in the peer to peer lending business. You start with a small amount and lend out money to people with good credit at your decided interest rate. Join a peer-to-peer lending company. They’re going to assist you in your investments. Start off with a low premium, let’s say about $25-$30 and see your money grow.

The best part of the money lending business is that you can start with a small capital and see if it works for you. So, in the present times, when you are hard-pressed for money, here’s an opportunity for you to invest in a business with affordable risk. The lending company is always there for you with the best assistance that you can ask for. I think this is going to work for me.

P2P lending, as it’s popularly known seems to be on the rise because the risk factors are minimal. If I’m investing, I know
I’m getting my returns back because the people I’m lending to stand good credit and defaulting is very rare. Recently, there seems to be a growing secondary market for this. Lending Club, Virgin Money USA, Zopa lenders and Prosper Marketplace are some of the companies that have come up with this.