About a year ago I began investing in peer to peer lending loans via Lending Club. My NAR (net annualized return) was around 11% until I let a defaulted loan slip by unmonitored. Even with the default my current NAR stands at 8.3%, which is still a solid ROI in today’s economy.
After having the default lower my NAR I now carefully watch the loans I invest in and am quick to offer them up on the secondary trading platform if the borrower looks like they’re getting into financial trouble. I have successfully dumped 2 other troubled loans, reclaiming about 80% of the value as opposed to losing the entire amount. All in all, I highly recommend investing through Lending Club. If you’d like more info on this, read my Lending Club review.
That brings me to todays tip for readers… if you’re trying to get out of credit card debt I recommend checking out Ready For Zero. It is not a debt settlement company but rather a free service that helps people eliminate credit card debt. The reason I’m mentioning their service in tandem with my Lending Club investments is because Lending Club uses ReadyForZero to verify the credit card debt of loan applicants. After reading about it I thought I’d mention here in hopes that it may benefit someone.
From the Ready For Zero site:
“Are you ready to get out of credit card debt? ReadyForZero is a free online financial tool that lets you track your credit card debt, explore options, and make and follow a plan to eliminate it. This is a gimmick-free program, not a debt settlement or similar service.”
If you end up signing up and using it… be sure to share your experience in the comments.
From other great PF blogs
- My Debt Story, Our Debt Story – A new blog started by a good friend of mine (I love promoting solid new blogs.)
- Different Types Of Canadian Financial Advisors – Which Is Right For You?
- Planning for Uneven Retirement Spending
- This is Why You Can’t Make Money in the Stock Market
- Increasing Our Extra Mortgage Payments
- Guide For Life After College
- 7 Proven Credit Builders
- The P’s of Evaluating a Financial Advisor
- Where to Keep Your Emergency Fund – Nowadays there are not as many options as in the past for safe investments with moderate returns. But here are a few safe places to create your “rainy day” fund.
- How to File an Amended Tax Return
- When Do You Need to Buy Long Term Care Insurance?
- Mortgage Applications Rise Even As Rates Inch Up. Is It Time To Buy Or Refinance?
- Best House Selling Tips
- 10 Best Home Based Businesses
- When is it Best to Itemize Your Taxes?
- How to Negotiate Your Medical and Dental Bills – Tips from an insider for saving money on your medical and dental bills.
- What To Do with Your Tax Refund. Ideas for responsibly using your tax refund.
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