State Rate Caps Force Borrower (Blogger) To Take Action | P2P Lending, Peer to Peer Lending, People to People Lending

A C credit (super clean) borrower from Virgina (rate capped at 11%) has been trying to get a loan unsuccessfully on Prosper.

Purpose of loan:

Replace an air conditioning unit that went out during a 100 degree day in the Washington DC area. I have made due without air conditioning until now; however, the weather is cooling down and it may be the best time to buy a new system as the old system is dead and not worth fixing. An average summer electric bill for me is about $300 because of the air conditioning. A new unit will be much more efficient and will most likely pay for itself in about 5-6 years.

My financial situation:
The job I have now is with a company that I worked at for about 5 years. Then I left to try a business of my own for about 4 years and now I am back at my old company again, which is why you see only “6 months” at my present job.

I run a web site – – that brings in an income of about $900 a month

Monthly net income: $ 6400 + 900 = $7300 after taxes

Monthly expenses: $ 5800
Housing: $ 2700
Insurance: $ 200
Car expenses: $ 50
Utilities: $ 400 (mostly because of an inefficient old air conditioner – this will go down next summer)
Phone, cable, internet: $ 100
Food, entertainment: $ 300 (yes, a lot of cans of beans)
Clothing, household expenses $ 100
Credit cards and other loans: $ 1500 (Yes, I know – ouch. Old business debts)
Other expenses: $ 300 (in case I forgot anything else)

Income of $7300 minus expenses of $5800 leaves me with about $1500 in free cash flow that I generally apply to my credit card balances.

Virgina’s stance on the issue is completely baffling to me. Protecting your citizens by only allowing to get loans at 11% or less? How does this help? By keeping all but the highest quality of borrower from getting loans?

Viva la free market.

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