When your lifestyle exceeds your income, and the Cards are maxed out, what do you do? Easy! Go online to LC/Prosper, get a refi loan, pay down the credit cards so you can run them up again.
I don't think many people intend to run up the cards again after getting a P2P refi, but budgeting and living within your means are not easy if you've never learned how.
In the days before the housing bubble, I had a friend who would do a cash-out mortgage refi every 3-4 years in order to pay down the credit cards. Long talks with him about the folly of this made no difference. Today he has almost no equity instead of a paid-off mortgage.
