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Investment advice for Dave
David V. asked:
Matt, With the exception of my house in Michigan, I don’t have any outstanding debts. I refuse to invest in anything involving the stock market. Other than having an emergency fund, what other short term investments are good? What about brokering debt consolidation for others….obviously this could be risky when your dealing with individuals that have demonstrated poor past performance with money.
What would you recommend for short term investments without large capital amount…..10-15K?
Brokering debt consolidation as an investment option…
Dave, I think you answered your own question here but are just missing the last piece of the puzzle… a brokerage house to facilitate your lending while paying you excellent returns. Well… I just so happen to have experience with a great company who is doing just that.
Here is what I would do Dave:
Take your $10 – $15K and invest with Lending Club and broker debt consolidation as an investment.
Check out my personal experience as a borrower with Lending Club along with a few testimonials from friends who are Lending Club investors by reading my Lending Club Review.
One of the best things about investing with Lending Club is your ability to pick and choose the types of loans you fund, so you can choose to fund all debt consolidation loans or any other type of loan you feel comfortable funding. I do very little investing with them at the moment because I am currently focused on aggressive debt reduction, but when I do fund loans… I usually go with debt consolidation loans for people who are passionate about breaking free from the bondage of debt but need a helping hand.
Here are Lending Club’s reasons for brokering debt through them…
Lending Club’s seven reasons to Invest:
- You can earn better returns – Since June 2007, Lending Club investors have earned an average net annualized return of over 9%. Read the report by Javelin Research.
- It’s straightforward – The money you invest funds loans made to creditworthy borrowers.
- We’re selective – Many borrowers apply, but less than one in ten are accepted. Lending Club approves only creditworthy borrowers as members.
- It’s easy – Lending Club makes it easy to build a portfolio based on your criteria. Most lending members spread their investment across tens or hundreds of qualified borrowers.
- We set fair and fixed rates – Their rates are based on historical trends and the current economic climate. Borrowers pay a fixed rate for the 3-year life of the loan.
- You get flexibility – You can reinvest any interest and principal payments each month or withdraw them like an annuity. You can also put your notes up for sale on the Note Trading Platform.
- Do good while doing well – Many Lending Club lending members find it rewarding to help others meet their financial goals. Especially in this economic environment, Lending Club members come through when big banks do not.
I say Dave should definitely, without a doubt… move forward with brokering debt via Lending Club as a solid investment option.
What do you think?
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