A portion of my investments is in peer to peer lending (p2p). Peer to peer lending gives you the opportunity to act as a bank and loan your money out for a certain interest rate. You get to choose the rate in which you loan out the money. You are able to see the individuals’ credit score, occupation, debt to income ratio (percentage of their income that remains after all monthly expenses), any delinquencies (missed payments on other credit accounts), and much more. Essentially it gives you the opportunity to act the same as the mortgage company that owns most of your homes.
This is just a suggested place to invest some of your income and build your assets. I would like to be as objective as possible. There can also be some downsides to peer to peer lending. As of now I have yet to experience any. But here is a video laying out some of the pros and cons of peer to peer lending.
The site that I have a peer to peer lending website that I use is www.Lendingclub.com
It is one of my best investments. The only thing I don’t like about it is that it is not a liquid asset. Meaning it is not easily turned back into cash. I have to wait until the loan matures (paid back at the last due date, which could be as long as 5 years), or if the individual pays back the principal in full early. Do your homework. Leave comments or questions.
BUILD YOUR FINANCIAL LITERACY ONE DAY AT A TIME!!!