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Earn High Returns with Peer Lending

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Back in 2009 I was the guy borrowing from peer lending investors.  Not anymore baby!

Investing in peer loans is paying me about $25/month… and that number grows with every loan I invest in.

Invest in peer lending

Peer lending is just another term for peer to peer lending, social lending, p2p lending, etc.

Now-a-days I’m the guy getting paid to loan money… and it feels really, really good.

One way I invest – and earn high returns – is by using peer lending platforms to loan money to people who are in the same position I used to be.  I enjoy doing this for two main reasons:

  1. I can help them get out of debt.
  2. I can earn high returns on my money.

I usually stay away from loans (a.k.a. notes) being used to finance things, like weddings or automobiles, and stick primarily to debt consolidation loans and sometimes business loans.

How much you earn will depend mostly on the notes you choose, how you choose them, and your use of the secondary market.

How much I earn with peer lending

I currently have nearly $4,000 invested in 90 notes.  I have had one note default and am earning a NAR (net annualized return) of 8.55%.

The average peer lending investor earns approximately 10% on their investment… so I’m a little behind the curve, but I’m learning – and will take a 8.5% return any day.

To date I have earned $212 in total interest… and I’m pulling in about $25 in interest a month, and this number grows monthly as I invest in more notes.

Tips for earning higher returns

Here are a few tips for those who want to start investing with peer lending:

  1. Before you choose loans be sure to pick solid criteria then save the criteria search.  I will elaborate more on this in a future post dedicated wholly to the subject, but for now just understand that you can filter the loans based on criteria like “no defaults in the past 3 years” and “credit scores of 700+”, etc.
  2. Keep an eye on the notes you invest in and resell troubled notes on the secondary market.  Again, I will drill down on specifics later, but just be aware that selling troubled notes on the secondary market is a crucial part of earning higher returns.  Don’t be intimidated by this either because it’s easy peasy, all you basically need to do is pick the loans you want to resell, price them at a discount and click “submit”.
  3. Diversify your notes.  By this I mean to invest in notes of different grades to balance risk and returns.  Peer lending platforms grade the loans based on borrower credit history and allow you to drill into the details and pick loans paying higher returns while still offering less risk – they’re there, you just have to look.

Those are the basics.  Feel free to ask questions in the comments section below.

How you can get started with peer lending

If you like the returns peer lending is delivering and want to get started, there are two companies I recommend in full confidence… Lending Club and Prosper.

Personally, I have more experience investing with Lending Club, but know both companies are sound and proven, so choose Prosper if their platform suits your needs better.

Debt Help – The Lending Club DebtBuster Challenge

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Don’t you just love the Christmas holiday?  Trees, lights, carols, cookies, cards, sacrificial giving, decorations, cookies, time off work, and time spent with family and friends… eating cookies.

Did I mention cookies? 😉

Considering how this time of year conjures up visions of sugar plums dancing through our heads… how did buying things people do not need with money we don’t have ever become synonymous with this season of charity, joy, and sacrifice?

Though this is a question more and more of us are starting to ask ourselves, I suppose we can leave the how and why of it up for debate another day and instead focus on debt solutions, debt help, and debt relief.  After all… if we’re honest with ourselves, dealing with debt head on is exactly what we need to do.  Debt is never going to just go away, we have to make it go away.  Credit card debt is never going to pay it self off, we have to make ourselves pay it off.  We can never start winning with money until we stand up, take responsibility for our debt, and start taking steps in the direction of responsible debt reduction.

This spirit of passionate debt reduction is the exact focus of the latest move from Lending Club.  They are currently sponsoring a cool promotion to help get you on the path of responsible debt reduction and throwing in some cool freebies along with it.

Introducing the Lending Club DebtBuster Challenge!

What is it?

  • From now until January 15th Lending Club is encouraging us to be responsible and commit to taking the DebtBuster Challenge to consolidate debt, manage debt, reduce debt, and eliminate debt once and for all.
  • This is a program they have created to raise debt awareness and encourage personal fiscal responsibility during this holiday season… and far into the future.
  • Go to the Lending Club website to check rates based on credit score and credit history and secure a debt reduction loan with Lending Club.
  • Sign up today and they will send you a nifty Lending Club t-shirt or back pack.

What is Lending Club?

  • Lending Club is a peer to peer lender who facilitates the borrowing and lending of money between individuals, thus bypassing traditional banks and all the headaches that come along with it.

Why Lending Club?

  • I keep saying “we” and “us” because you are not alone… I’m right here with you on this.  I secured a debt consolidation reduction loan through Lending Club back in August of this year and wrote all about it in my Lending Club Review.
  • Lending Club offers better rates and less hassle than borrowing from traditional banks.
  • And because I know all to well that debt reduction and elimination is exactly what many of us Americans need to be focusing on.

Join Lending Club for Debt Help

I am proud to be part of the Lending Club DebtBuster Challenge and am not alone in offering this wonderful promotion to you.

I am partnering with Lending Club themselves and the 4 other top DebtBuster bloggers to offer advice and encouragement for those committed to debt reduction during this holiday season.

As always, keep an eye on our blogs over the next few weeks for articles to help encourage your passionate move toward debt reduction and debt elimination.  A time or two each week we will be specifically addressing those who committed to taking the Lending Club Debtbuster Challenge.

Sign up and take the Lending Club DebtBuster Challenge

Do not put off your debt reduction any longer!  Now is the time and this is the opportunity.  Join me and thousands of other responsible and committed Americans as we get Lending Club on our side, commit to the DebtBuster Challenge, and make the move toward freedom from debt using the power of peer to peer lending.

Helpful DebtBuster Links

  • Official Lending Club DebtBuster Press Release

Other participating DebtBuster Bloggers

The Lending Club $2,500 Investor Giveaway!

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This post is just a quick note to let everyone know about an exciting $2,500 opportunity brewing over at Lending Club.

$2,500 Giveaway Details

Could you use an extra $2,500?  I’m sure we all could!

The giveaway is simple:

  1. Sign up to invest through Lending Club to be eligible to win.
  2. “During September one lucky winner will become Lending Club’s 25,000th registered investor. To celebrate this milestone, the 25,000th registered investor will receive $2,500 cash!”

Simply put… this is just a easy way to get a chance at a decent amount of money.  And the cool part is that investing through Lending Club is a very wise decision.

(at the time of writing) Lending Club notes average 9.64% net annualized returns, and are offered by prospectus filed with the SEC.

My History with Lending Club

As you may know, I have been a big fan of Lending Club for two main reasons:

  1. I was able to consolidate my high interest debt through Lending Club and save over $500 in the process. Another cool aspect of this, beyond saving money, is that I am paying my interest to individuals — several of which I know personally — as opposed to corporate banker fat cats.
  2. Investing through Lending Club is currently one of your best options for a positive return on your money. Although I have yet to invest personally, my review of Lending Club also contains four investor testimonials… all of whom have nothing but positive things to say about their Lending Club investing experience.

As soon as I pay off my high interest debt, I will be jumping on the Lending Club bandwagon and will invest liberally.  I have not done so yet because it just doesn’t make any sense to invest when I am still repaying high interest debt!