Whenever I talk to my friends about Prosper, one element about peer to peer lending which always seems to hit home is that its better to pay interest to 'regular people' instead of credit card companies or banks.

It's true. Its one of the reasons I became a lender. If anyone in the world makes money, its credit cards and banks, why shouldn't average people step in and replace the 'old guard' with something new like peer to peer lending? Instead of income earned from loans being put into the hands of banks, it makes sense to cut the middle man out and distribute the revenue to the community instead.

Wouldn't you rather pay interest to average people instead of credit card companies which have taken advantage of us for decades? I certainly would, and its why I encourage those with credit card balances to convert them into Prosper loans. To become a lender you, can read about Prosper here, if you want to borrow money, you can start here.