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Like any form of insurance, you can probably convince yourself that not buying an extended warranty on an electronics or appliance purchase is a surefire way to ensure that you’ll end up needing it. Whether or not you should buy one is totally up to you, but here are some interesting points to consider from an article on the subject:

• Most electronics and appliances come with 1 year of coverage from the manufacturer

• Most problems that do occur are manufacturing defects that tend to occur early on
o So if you get through the first few months (when the manufacturer’s warranty is still in effect) you’ll probably get through the first few years

• You may already have extended coverage through your credit card

o Many credit cards double a manufacturer’s warranty for items purchased with their card, so check with your card issuer to see if you have such coverage

• Extended coverage typically overlaps normal coverage
o So buying a three-year warranty only gets you two extra years if the manufacturer covers the first year

• Many products tend not to break down during the first few years of service

• Getting warranty service can be a hassle
o Depending on what your time is worth, it may be cheaper to just replace the item. Remember too that while your extended warranty may guarantee repair or replacement, it likely doesn’t specify how quickly service will take place

• Extended warranties are claimed so rarely, their profit margins run as high as 40% to 80%

o That’s probably why salespeople push so hard to try to entice you to buy one

The article does advise considering the extended warranty on certain very expensive items as well as products built on new technologies, which may not have a proven track record of reliability.

Deciding whether or not to buy an extended warranty can be difficult. Keeping the points outlined above in mind should help you to make a more informed decision. If you need to replace the item yourself, get a P2P loan on Lending Club and you’ll benefit from installment payments that are easy to fit into your budget.

How can you join the ranks of America's wealthy (defined as people whose net worth is over $1 million)? No, you don't need to win the lottery, become a pop idol or inherit their money. It's actually easier than that, according to Dr. Thomas J. Stanley and Dr. William D. Danko who wrote The Millionaire Next Door - The Surprising Secrets of America's Wealthy.

The two doctors spent 20 years surveying America's wealthy. As they started to conduct their research, they had some trouble locating the wealthy. The researchers were surprised to learn that many of the rich people they interviewed did not live in upscale neighborhoods. In fact, many people who live in expensive homes and drive luxury cars do not actually have much wealth.

As Maneesh Sethi discussed on an earlier Lending Club post, most millionaires in the United States are average people except they invest their money on a regular basis and live modest lives. Most millionaires drive regular cars that they bought used for less than $25,000, live in modest homes and work in unglamorous industries. As a matter of fact, most millionaires are entrepreneurs and own and operate their own small businesses.

According to Stanley and Danko, here are the seven factors common among the millionaires he interviewed:

1. They live well below their means – This is a common theme here on the Lending Club blog and, in my opinion the most important. Wealth is rarely about how much you make – it's about how much you spend.

2. They allocate their time, energy, and money efficiently, in ways conducive to building wealth – Millionaires build deliberate short- and long-term plans. They budget and invest and use the services of financial advisors and tax consultants.

3. They believe that financial independence is more important than displaying high social status – Lending Club blogger Mike Smith discussed this point extensively in an earlier post entitled Change in mindset.

4. Their parents did not provide economic outpatient care – When parents bail their children out of financial difficulties, it tends to create children who are dependent on their parents instead of self-sufficient. Psychologist Gary Buffone said, "Typically, the more dollars adult children receive, the fewer they accumulate, while those who are given fewer dollars accumulate more." That is one reason why many people look at peer to peer lending options like Lending Club to facilitate loans between family members. Through loans instead of handouts, parents can teach important financial lessons. MSN money explores the concept of economic outpatient care further in an article by Liz Weston, Should parents bail out their adult kids?

5. Their adult children are economically self-sufficient – This grows out of the above point. Financial goals need to be family goals.

6. They are proficient in targeting market opportunities – Many millionaires are small business owners and they often own several businesses.

7. They chose the right occupation – The most important part about choosing the right occupation is choosing one you truly enjoy. If you wake up and can't wait to get to the office to start your job, you are in the right occupation. If your job is something you enjoy doing, you are going to do it well.

Just as personal connections make person-to-person lending so successful at Lending Club, you probably have many personal relationships with people who provide you with services. Along with all of the other holiday expenses we normally incur, these people may be deserving of a tip or small gift at this time of year.

How much is appropriate to tip? This is sometimes confusing. To help you avoid forgetting someone, over-tipping, or under-tipping them, I compared the recommendations of many websites and compiled a list of average recommendations, rounded to the nearest $5. This list probably has some people that are not applicable to your situation. Note that these amounts are only a guideline. You may want to give more or less based on the level of service you received, depending on where you live and whether or not you have a personal relationship with the service providers in your life.

If you don’t want to tip, or can’t afford to, that’s fine. Some people believe that you shouldn’t tip someone you’re already paying to do their job. I’m simply providing this list so that if you do want to tip anyone, you’ll have a reasonable starting point. Any of the categories with wide ranges should be adjusted based on the quality and quantity of service you receive.

* Note that as a civil servant, mail carriers are not supposed to accept cash. They are allowed to accept other gifts, up to a $20 value.

If you are not in a position to provide a cash gift, consider a baked holiday treat, a simple thank you card, or even a letter of praise to the service person’s superior. If nothing else, a heart-felt thank you, a smile, and a pleasant personality will also tell these people that their services are sincerely appreciated.

I recently received an email from a lady in the Midwest who was the victim of an online lending scam. She found my blog about P2P lending and wanted to know if P2P lending was a scam or if she could use it to lift her out of her financial troubles. With her permission I'm sharing an excerpt from her letter:

"…my husband and I have not had very good financial luck in the past 3 - 4 years.

We are interested in borrowing money; however, anytime we have tried to borrow money, our credit rating holds us back. We have been scammed out of over $2,000.00 in funding costs by prospective lenders, and we really do not have any extra money to lose.

If we need to borrow money, but do not want to give out our private information for fear of being scammed again, how could we know if we could qualify…

We have fallen behind on several bills, paid several others, but really need about $20,000.00 to just take care of all the creditors we have in one consolidated loan. We want to build our credit so we can get back into a house to make it a home for our family.

Please let me know if there is a way to apply for a loan without giving up our checking information and any 'up front fees' before we find out if we could possibly qualify."

Peer to peer lending is a perfect option for her and others in her situation — particularly because there are no hidden charges, and fees are only charged as a result of an accepted and approved loan. Unfortunately, however, loan scams are quite common and can make people reluctant to seek loans online. In her words, here is what happened in this lending scam:

"I found a company online…they were out of Portland, Oregon. I spoke with 3 or 4 gentlemen (of which I did keep names and numbers) — they told me what information they needed and promised me that after they sent the legal forms, I signed and returned them, they would wire transfer the $25,000 into my account the next day.

…they called me later after I faxed the papers and said everything was a go, and gave me the information to Western Union the money. I got all the money together and sent $1,785.00 to the guy in Canada, plus another $125.00 in WU costs, and then called to let them know the money had been sent.

I waited until the next day to see if the money was in my account and nothing showed up. I called and got the man's answering machine, but no return phone call. I called the next day and the number had been disconnected. I called WU and told them I thought I had been scammed and faxed all the paperwork to them. It was a very difficult lesson to learn, so now I am paying the price every week to payday and title loans."

You should never pay an advance fee to secure a loan. Legitimate loans, like loans obtained through Lending Club, do not require an up-front payment. Here are tips from the Federal Trade Commission on how to avoid lending scams:

• Don't pay for the promise of a loan. It's illegal for companies doing business by phone in the U.S. to promise you a loan and ask you to pay for it before they deliver. Requiring advance fees for loans also is illegal in Canada

• Ignore any ad — or hang up on any caller — that guarantees a loan in exchange for a fee in advance

• Remember that legitimate lenders never guarantee or say that you will receive a loan before you apply, or before they have checked out your credit status or contacted your references, especially if you have bad credit or no credit record

• Don't give your credit card, bank account, or Social Security number on the telephone, by fax, or via the Internet unless you are familiar with the company and know why the information is necessary

• Don't make a payment to an individual for a loan; no legitimate lending organization would make such a request

• Don't wire money or send money orders for a loan through Western Union or similar companies. You have little recourse if there's a problem with a wire transaction. Legitimate lenders don't pressure you to wire funds

• If you are not absolutely sure who you are dealing with, get the company's number in the phone book or from directory assistance, and call it to make sure you're dealing with the company you think you are. Some scam artists have pretended to be the Better Business Bureau or another legitimate organization

• Check out questionable ads by calling Project Phonebusters in Canada toll-free at 1-888-495-8501. If you live in the U.S. and think you've been a victim of an advance-fee loan scam, report it to the FTC online at www.ftc.gov or by phone, toll-free, at 1-877-FTC-HELP (1-877-382-4357)

I can empathize with this lady who was scammed. I consider myself to be pretty financially savvy but I was also scammed out of several hundred dollars in a different situation years ago. Scams work because people generally trust each other and want to believe that they can make money quick or get out of the troublesome financial situation they are in. We here at Lending Club remind you that the best defense against these lending scams is to spread the word. Please pass this post on to anyone that may benefit.

As a child, receiving the Sears Wishbook in the mail was one of the true thrills of the holiday season. Nowadays, the first L.L. Bean Christmas catalog of the year provides a similar rush. This year’s catalog advertised something that more and more retailers are using to help boost their seasonal sales: Free Shipping.

The National Retail Federation, cites results of the 2007 eHoliday Study, conducted by BizRate Research for Shop.org and Shopzilla. The study found that conditionally free shipping will be offered by 78.6% of the retailers this season. Conditionally free shipping means that shipping will be free if a condition, such as a minimum purchase amount, is met.

While conditionally free shipping will be the most popular shipping promotion, it is not the only one that will be offered. Retailers will use the following promotions as well: 60.4% will use free shipping upgrades, 53.5% will use discounted shipping, and 41.4% will use free shipping without conditions. I was pleased to see that the terms of L.L. Bean’s shipping fall into this last category.

Shopping online can be the most affordable way to shop with such promotions. First, consumers can likely find better prices online than they could at their local store. Second, many online items are sold tax- free, though they may be subject to use tax in some states. Third, free shipping not only saves people money, but also allows them to avoid having to deal with the expense of driving to the stores and the subsequent crowds they find there.

Lending Club, the P2P lender of choice, wants your holiday to be as joyous, and affordable, as possible. We encourage you to take advantage of free and reduced shipping from online retailers to make both of those hopes a reality.