This will be the first in a series of posts this month around issues around credit and debt. I'm going to kick things off with what is a hot topic this week in the world of personal finance blogging - microfinance.

Microfinance, in a nutshell, is a system of small loans made outside the traditional banking system. Microfinance has often been done in the U.S. by immigrant groups through Rotating Credit and Savings Associations (ROSCAs). ROSCAs are often used to help purchase homes or start businesses. The ROSCA format was more formally adapted famously by the Grameen Bank in order to help the rural poor in Bangladesh start small businesses. The vast majority of these loans are made to women and the repayment rate is nearly 100%.

The success of this model of small-scale, peer-to-peer lending has generated a slew of related models of microfinance.

One of the newest entrants in the P2P lending world is Prosper. Personal finance blogging couple James and Miel turned up the heat on blogging about Prosper this week when they announced that they planned to finance their graduate educations in large part by investing $70,000 into Prosper. That bold idea certainly got more than a few bloggers to debate the wisdom of the move. However, James' mother convinced them to reconsider that plan.

Quite a few BlogHers have been experimenting with Prosper either as lenders or borrowers.

Tired But Happy, Kara, D and Mapgirl are lenders.

~Dawn at Queercents is experimenting with borrowing before trying lending and has some tips for borrowers.

Tricia is borrowing and has tips for lenders on how to list a loan so you can attract borrowers - one key is remembering that these aren't anonymous transactions - they're personal.

BlogHer CE Liz Rizzo is a borrower and she's tracking her progress here and here.

Jane Dough is watching from the sidelines and also discusses UK site Zopa and international site Kiva.

~Dawn, Britt Bravo, and Nancy White also favorably review Kiva.

And, if you're inclined to keep your microfinance all in the family, check out Circle Lending which helps you manage private loan transactions.

So, if you are looking for a way to re-finance your debt, fund your small business or earn a higher rate of return than through traditional savings accounts, investigate the world of microfinance for opportunities that are perhaps riskier, but more personal and possibly more rewarding in ways beyond strictly dollars and cents.