Clark Howard's Tips
October 15, 2007
What do you do if you need money but want to avoid borrowing from the banks? In the past, Clark has always recommended credit unions. But now there are even more options available.
Prosper.com is a site where people lend money to each other instead of a bank being in the middle. The investor who takes a risk in lending to you earns relatively high returns and you get a low rate.
People sometimes balk when they learn that Clark is a member of AARP. But he's not interested in their political lobbying efforts; rather he's just a member for the discounts.
AARP actually consists of two branches under the same name. There's the non-profit organization for seniors, and then there's a second for-profit branch that sells insurance, investments and much more.
The Los Angeles Times' syndicated personal finance writer Kathy Kristof recently did an analysis of AARP's for-profit financial products and found that they are not necessarily the best deals. The assumption is that you must be getting a great deal if you're a member and you're being solicited. But that isn't always the case.
Clark has long felt that Congress should outlaw the practice of non-profits setting up for-profit subsidiaries and selling products or services in an effort to cash in on a legacy name. Please note that Clark is not saying AARP is ripping you off with their financial products. Instead he just wants to people to know that the deals they're being offered may not be the best ones out there.
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