Debt consolidation popular for interpersonal loans

A recent report shows that a large number of consumers who were looking for peer-to-peer loans were doing so with an eye on debt consolidation.

According to Prosper.com, 54 percent of loans sought at its site in November were for debt consolidation. Chris Larsen, CEO and co-founder of the company, noted that it was the second month in a row that debt consolidation made up the majority of loan borrowers as more consumers try to pay off their credit card debt.

“Debt consolidation has always been the number one use case on Prosper with business loans being the second most popular,” Larsen said.

For the month, business loans came in at 14 percent, while the next highest was the “other use” category.

Recent numbers from the Federal Reserve show that many consumers may be trying to reduce the amount of credit card debt they have on the books. The Fed reported that revolving consumer credit dropped at an annual rate of 7.3 percent during the third quarter of this year, while overall consumer credit declined 3.3 percent.