Comments on: Peer to Peer Lending Review http://frugaldad.com/2008/12/15/peer-to-peer-lending-offers-high-returns-in-low-rate-environment/ Money Saving Insights: Coupons, Smart Spending and Promotional Codes Mon, 13 Feb 2012 05:38:35 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: How to Become a Millionaire in 10 Years | Americans-First.com http://frugaldad.com/2008/12/15/peer-to-peer-lending-offers-high-returns-in-low-rate-environment/#comment-17767 How to Become a Millionaire in 10 Years | Americans-First.com Tue, 10 Feb 2009 10:28:58 +0000 http://frugaldad.com/?p=909#comment-17767 [...] a few hundred dollars a month, an investment opportunity with a great passive income, such as peer-to-peer lending, or a substantial part-time career that you can cultivate in your off [...] [...] a few hundred dollars a month, an investment opportunity with a great passive income, such as peer-to-peer lending, or a substantial part-time career that you can cultivate in your off [...]

]]> By: Diversifying Beyond Asset Allocation | Frugal Dad http://frugaldad.com/2008/12/15/peer-to-peer-lending-offers-high-returns-in-low-rate-environment/#comment-17436 Diversifying Beyond Asset Allocation | Frugal Dad Thu, 05 Feb 2009 11:01:09 +0000 http://frugaldad.com/?p=909#comment-17436 [...] lending. I’m convinced peer-to-peer lending is the next generation financial product that will even the playing field between big banks and the [...] [...] lending. I’m convinced peer-to-peer lending is the next generation financial product that will even the playing field between big banks and the [...]

]]> By: How to Become a Millionaire in 10 Years | Frugal Dad http://frugaldad.com/2008/12/15/peer-to-peer-lending-offers-high-returns-in-low-rate-environment/#comment-15116 How to Become a Millionaire in 10 Years | Frugal Dad Sun, 04 Jan 2009 13:25:55 +0000 http://frugaldad.com/?p=909#comment-15116 [...] a few hundred dollars a month, an investment opportunity with a great passive income, such as peer-to-peer lending, or a substantial part-time career that you can cultivate in your off [...] [...] a few hundred dollars a month, an investment opportunity with a great passive income, such as peer-to-peer lending, or a substantial part-time career that you can cultivate in your off [...]

]]> By: IndependentThinker http://frugaldad.com/2008/12/15/peer-to-peer-lending-offers-high-returns-in-low-rate-environment/#comment-14650 IndependentThinker Sun, 28 Dec 2008 09:07:27 +0000 http://frugaldad.com/?p=909#comment-14650 @DavidK: If you did some research before rattling off, you would have found out that these P2P lending sites DO NOT make money on the spread like banks do. They charge a small fee to lenders (1%) when they get money back. All the interest that comes back from the borrower goes to you as a lender. Now, is that not a win win? @DavidK:

If you did some research before rattling off, you would have found out that these P2P lending sites DO NOT make money on the spread like banks do. They charge a small fee to lenders (1%) when they get money back. All the interest that comes back from the borrower goes to you as a lender. Now, is that not a win win?

]]> By: DavidK http://frugaldad.com/2008/12/15/peer-to-peer-lending-offers-high-returns-in-low-rate-environment/#comment-13857 DavidK Tue, 16 Dec 2008 14:56:09 +0000 http://frugaldad.com/?p=909#comment-13857 Sorry IndependentThinker, apparently you don't like to accept the fact that almost all banks started the way the Lending Club has. Lots of people throwing their money into the pot and getting interest back as profit. It's not a new invention just because it involves the internet. As a side point on these P2P lending agencies, how do they pay the personnel that run the agencies? If they pay the investors 6-7%, then they must be charging the borrowers at least 9-10% in order to cover expenses if they do have people who manage the accounts and collect on bad borrowers. Also, where does the money go if the company goes under? Sorry IndependentThinker, apparently you don’t like to accept the fact that almost all banks started the way the Lending Club has. Lots of people throwing their money into the pot and getting interest back as profit. It’s not a new invention just because it involves the internet.

As a side point on these P2P lending agencies, how do they pay the personnel that run the agencies? If they pay the investors 6-7%, then they must be charging the borrowers at least 9-10% in order to cover expenses if they do have people who manage the accounts and collect on bad borrowers. Also, where does the money go if the company goes under?

]]> By: IndependentThinker http://frugaldad.com/2008/12/15/peer-to-peer-lending-offers-high-returns-in-low-rate-environment/#comment-13820 IndependentThinker Tue, 16 Dec 2008 04:28:57 +0000 http://frugaldad.com/?p=909#comment-13820 Do you guys really think that the banks exist for other reasons other than making tons of money and taking advantage of regular people? If you don't think that banks are not just greedy middle men that pay you 2-4% while charging people 18-30% on loans and credit cards, then you must think we are not in a financial crisis because of them. I love the idea of Lending Club! take the lending and borrowing back to the people, the way it was done before. Do you guys really think that the banks exist for other reasons other than making tons of money and taking advantage of regular people? If you don’t think that banks are not just greedy middle men that pay you 2-4% while charging people 18-30% on loans and credit cards, then you must think we are not in a financial crisis because of them.

I love the idea of Lending Club! take the lending and borrowing back to the people, the way it was done before.

]]> By: The Financial Blogger http://frugaldad.com/2008/12/15/peer-to-peer-lending-offers-high-returns-in-low-rate-environment/#comment-13812 The Financial Blogger Tue, 16 Dec 2008 02:01:07 +0000 http://frugaldad.com/?p=909#comment-13812 Don't you think that people are starting to default more on these kind of loans? I mean, yield is always the translation of the price of risk. If you can get 10% in this economic situation, I think you have to think twice before "investing" in someone else's project ;-) Don’t you think that people are starting to default more on these kind of loans? I mean, yield is always the translation of the price of risk.

If you can get 10% in this economic situation, I think you have to think twice before “investing” in someone else’s project ;-)

]]> By: Frugal Bachelor http://frugaldad.com/2008/12/15/peer-to-peer-lending-offers-high-returns-in-low-rate-environment/#comment-13805 Frugal Bachelor Tue, 16 Dec 2008 00:43:11 +0000 http://frugaldad.com/?p=909#comment-13805 I agree with DavidK. This seems like a messy, not to mention complicated, under-diversified, and highly risky way to make money. I'd rather have the peace of mind from having cash in FDIC insured accounts, even if I could be earning few percent elsewhere. Also, if you make too much from this basically you are essentially at the same level as payday loan shops and loan sharks. I agree with DavidK. This seems like a messy, not to mention complicated, under-diversified, and highly risky way to make money. I’d rather have the peace of mind from having cash in FDIC insured accounts, even if I could be earning few percent elsewhere. Also, if you make too much from this basically you are essentially at the same level as payday loan shops and loan sharks.

]]> By: Steve Rabago http://frugaldad.com/2008/12/15/peer-to-peer-lending-offers-high-returns-in-low-rate-environment/#comment-13788 Steve Rabago Mon, 15 Dec 2008 20:44:26 +0000 http://frugaldad.com/?p=909#comment-13788 ZimpleMoney.com is an option for Frugal Dad readers. ZimpleMoney is a friend and family lending site designed for making loans to people you know AND already trust! All you need to do is login, become a member, and start a loan to or from someone you know. Probably best if you have talked about it first, ZimpleMoney is not a marketplace where people make bids on loans to people they do not know. Rather it is a site where friends and family can help the ones they love and trust most. I hope your readers will check it out. Zimpley, Steve Rabago ZEO, ZimpleMoney ZimpleMoney.com is an option for Frugal Dad readers. ZimpleMoney is a friend and family lending site designed for making loans to people you know AND already trust! All you need to do is login, become a member, and start a loan to or from someone you know. Probably best if you have talked about it first, ZimpleMoney is not a marketplace where people make bids on loans to people they do not know. Rather it is a site where friends and family can help the ones they love and trust most. I hope your readers will check it out. Zimpley, Steve Rabago ZEO, ZimpleMoney

]]> By: the weakonomist http://frugaldad.com/2008/12/15/peer-to-peer-lending-offers-high-returns-in-low-rate-environment/#comment-13773 the weakonomist Mon, 15 Dec 2008 17:21:29 +0000 http://frugaldad.com/?p=909#comment-13773 @DavidK, depending on the terms of the loan, a prematured payoff would have you "screwed out of the interest", but you would get your money back and can then invest it elsewhere. Even most corporate bonds have an option to pay off early, so this isn't new for fixed income investors. The Lending Club serves as the admin for investors and borrowers, so in essence this does reduce the presence of a middle man. They also take care of debt collections and all that legal jazz. I for one am glad to see the Lending Club's presence. If I had thousands I needed to invest, I would look at the Lending Club and find worthy causes. @DavidK, depending on the terms of the loan, a prematured payoff would have you “screwed out of the interest”, but you would get your money back and can then invest it elsewhere. Even most corporate bonds have an option to pay off early, so this isn’t new for fixed income investors.

The Lending Club serves as the admin for investors and borrowers, so in essence this does reduce the presence of a middle man. They also take care of debt collections and all that legal jazz.

I for one am glad to see the Lending Club’s presence. If I had thousands I needed to invest, I would look at the Lending Club and find worthy causes.

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