Prosper Update
I'm nearing the end of my money crunch (payday tomorrow) which was mainly caused by overpaying debt (is there such a thing) and also because I made a few too many Prosper loans.
Prosper Loans are a great way to sock away some emergency funds at a healthy interest rate. The catch? Your money is tied up in each loan for 36 months. Each loan COULD be paid off early, but most loans will simply return back a small amount of interest and principal each month for 36 payments. The postitive? There are extremely safe loans towards low/almost no risk individuals at 8-12% interest! I'm willing to bet that beats the interet rate of your current savings account. You can also make higher risk loans, but for any money you are counting on, I wouldn't recommend it.
I have set to goal of contributing ~$100/mth to Prosper in order to FORCE myself to save. My short term goal is 3 months worth of expenses in loans at at least 12% interest. My long term goal is to have 2 years worth of income lent out on Prosper at an interest rate of at least 12%. It may take me 20 years...but I don't usually set easy goals for myself...I am for the sun.
Every dollar I put in a loan is essentially locked in a safe where I can't touch it for 3 years. And every $1000 that I lend out (at an assumed interest rate of 8.5%, I get back ~$31. Of that payment, roughly $28 is principal and roughly $3 of it is interest. It may not seem like a lot, but I prefer to have several eggs in every basket.
Currently, I have lent out 71.97% of one months income in loans at an average interest rate of 16.05.% I have 19.32% of one months income in loans that are waiting to be processed and 2.44% of one months income sitting in cash waiting to be lent out. That brings me to a total of 93.73% of one months income tied up in Prosper. I may only be 4.16% towards my goal...but if I give it time...I'll get there.
Short term goal: 3 months expenses
<<<<<31.24%>>>>><<<<<<<<<<<<<<<68.76% Incomplete>>>>>>>>>>>>>>>
Long Term Goal: 2 years expenses
<4.16%><<<<<<<<<<<<<<<<<<<68.76%>>>>>>>>>>>>>>>>>>>>>
I'd highly recommend checking out the site and opening and account. Even if you only up in $50 every once in a while, its still an asset that you didn't have before...and if you let it sit there...it will compound without you doing a single thing!
If you are interested in reading more about prosper loans and specifically, finding information about loan repayment etc. I recommend checking out http://www.ericscc.com/ . It is a great site and the writer seems to have really done his homework! (it is also where I got the above data from my loans.)
Prosper Loans are a great way to sock away some emergency funds at a healthy interest rate. The catch? Your money is tied up in each loan for 36 months. Each loan COULD be paid off early, but most loans will simply return back a small amount of interest and principal each month for 36 payments. The postitive? There are extremely safe loans towards low/almost no risk individuals at 8-12% interest! I'm willing to bet that beats the interet rate of your current savings account. You can also make higher risk loans, but for any money you are counting on, I wouldn't recommend it.
I have set to goal of contributing ~$100/mth to Prosper in order to FORCE myself to save. My short term goal is 3 months worth of expenses in loans at at least 12% interest. My long term goal is to have 2 years worth of income lent out on Prosper at an interest rate of at least 12%. It may take me 20 years...but I don't usually set easy goals for myself...I am for the sun.
Every dollar I put in a loan is essentially locked in a safe where I can't touch it for 3 years. And every $1000 that I lend out (at an assumed interest rate of 8.5%, I get back ~$31. Of that payment, roughly $28 is principal and roughly $3 of it is interest. It may not seem like a lot, but I prefer to have several eggs in every basket.
Currently, I have lent out 71.97% of one months income in loans at an average interest rate of 16.05.% I have 19.32% of one months income in loans that are waiting to be processed and 2.44% of one months income sitting in cash waiting to be lent out. That brings me to a total of 93.73% of one months income tied up in Prosper. I may only be 4.16% towards my goal...but if I give it time...I'll get there.
Short term goal: 3 months expenses
<<<<<31.24%>>>>><<<<<<<<<<<<<<<68.76% Incomplete>>>>>>>>>>>>>>>
Long Term Goal: 2 years expenses
<4.16%><<<<<<<<<<<<<<<<<<<68.76%>>>>>>>>>>>>>>>>>>>>>
I'd highly recommend checking out the site and opening and account. Even if you only up in $50 every once in a while, its still an asset that you didn't have before...and if you let it sit there...it will compound without you doing a single thing!
If you are interested in reading more about prosper loans and specifically, finding information about loan repayment etc. I recommend checking out http://www.ericscc.com/ . It is a great site and the writer seems to have really done his homework! (it is also where I got the above data from my loans.)
posted by Thor @ 6:23 AM
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