Everyone has to borrow at some point in their lives. Since everyone says don't don't borrow money from friends, everyone gets their loans from the bank. Everyone is wrong.

Most people at some point have had debt where they're paying nothing but interest while trying to stay afloat. The lending companies are charging us a fortune for the privilege of owing them money. One of the best ways to keep money within the Seekers of 42 is to reduce the amount of money hemorrhaging from interest.

Everyone Wins
Set up a deal that is mutually beneficial and no one is doing anyone else a favor. The lender makes money at a better than retirement investment rate and the borrow gets an interest rate that's roughly half of your average credit card.

The Deal
7% APR 4 year loan works out almost exactly to $1150 per $1000 borrowed, but the payments are approximately 23.9583333333 for 48 months. So instead of that odd amount for 48 months just skip the first and last payment and you get a nice clean $25/month payment plan for 46 months.

Lenders

As a lender, make certain you have the money to lend and are comfortable with the finances of the borrower. The whole thing works on trust. There's no contracts, no guarantees, so if you don't trust the borrower then don't lend the money. Also, once the lending is done, don't ask for it back early or ask for higher monthly payments. Hands off unless money doesn't clear. You're not doing the borrow a favor, you're making a mutually beneficial deal.

Borrowers

As a borrower, first make certain the deal works out for you financially. It should work out well for all parties. Also make certain you can afford the payments no matter what. Set up an auto payment from your bank to send checks or some other reminder. Be open and honest first with yourself about your budgeting and also with your lender about what you an afford to borrow. The lender is taking all the risk so make them as comfortable as possible.

Making It Happen
This site is a reference to share the concept but it is not the place to find lenders or borrowers. The next steps are yours. Contact those in your social circle, share the idea, spread the thought, gather money and find borrowers, review your debt and find lenders. The next step is yours. Go take that step right now.

Resources
Here's a template you can use if you want to. Just copy to your own google doc, share with your associates, and set to email on updates so you can know when money is moving.

This is an idea that's open to anyone who wants to use it. We don't own this idea and we aren't a central repository for coordinating.