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Wednesday, February 19, 2014

2/19/2014 - update

January and February

Well today I logged into my account and saw that two of my accounts have gone from Defaults to Charge off. That sucks... but at least it only a little loss not a huge loss. Got to keep a positive attitude with all this.

So a lot of things have happened in the past few weeks since I last updated this. I have paid off all credit cards (Got a debt consolidation loan) and We refinanced the mortgage and our cars to a much lower interest. and this weekend we are looking to remove a third line that we done use and also change our Contract with AT&T. So we have made some huge changes.

I paid off a 12.9% and 13.5% credit card and rolled it into a Loan that I got from Lending Club. So now I am on both sides of the lending club as the investor and the borrower. The Job news is that loan will be paid in full in 36 months unlike a credit card that never ends until you just pay it off not make the minimum payments.

With the cars we reduced our terms from 60 months to 48 and reduced the interest to 3.5% versus 8.~% and 4.25%. The payments are higher but we will have them done by 2018.

So if we stay on trace we will have the loan and the cars paid in full in 4 years. (hopefully sooner).

I have started to force a small deposit into our savings account and also lending club. $50 to savings per week and $25 every other week to lending club. It's small but it is better then nothing. I want to invest a lot more but the loan consolidation is taken a huge chunk of that and the increased car payments are killing it as well. The loan is not just to cover the credit cards, but it is also to pay for a trip to japan this coming September. the tickets were ridiculously expensive. But in order to get the better deal you have to purchase your tickets earlier in the year that waiting to that last minute.

So now we have $10,756 in saving this is made up of the left over money from the loan consolidation and a $455 check was returned to us from the Mortgage refi, and the $50 per week that we start at the beginning of the month of February. The idea is to keep the 10,000 grand as a safety net and to use to cover loan payments if needed.

I also got a discover card to earn 1% cash back on all purchases and 5% of their quarterly benefits. And since we do a lot more online shopping we can get anywhere from 5%-15%+ on those purchases. So far I have had this card for a month. and I keep the balance at 0 at all times. I only use the card for normal everyday bills and gas and groceries. No! Big purchase, No! Big spending. I just treat the card like my debit card, but I make sure to pay it off every time there is a balance on the card. I check my card balance everyday (m-f) and it so far helps me to keep a very very close eye on my spending. There are a ton of other perks that I like with the card. like the 0% 15 month introductory rate. (which doesn't matter if I keep the card at $0 Balance due.

More later...

Thursday, January 9, 2014

November ?? What happend?

Sorry for the late updates I got caught up with the holidays and work busting my buns off to get us all caught up before the end of the year.

So what is the status?
Well I have 2 loans that went into "late 90-120" status and 4 loans have been paid in full
to date (1/9/2014) I have 56 notes that are current.

My Balance is 1036.15 But if you figure in the 2 loans that are late and one of them filed Bankruptcy (chapter 7) I lost the investment there of $35.

Then really I have only made $1.15... Wow that was a pisser.

In other news I have acquired a loan from lending club and using that to pay off my credit cards and then keeping the remaining to have as a repayment cushion.

So this is my experience so far with the process of getting the loan. I applied online which was easy. I am a A5 rating. I asked for $35,000 then lending club took a fee of $1050.00 off the top. (That was a bit of a pisser there) But I have already put in a pay off for my credit card which is currently at 3,650 14% and my other card that is 15,020 12% and I paid my auto insurance in full for the rest of the 6 month term. I'm planning to visit family in Japan. Which is going to be a little pricey at close to $5,000 for three round trip tickets. But what I am planning on doing is using my Discover card online shopping to get 5% cash back on that purchase as I plan to use the money from the loan to pay that off fast. Lending Club is 36month @ 10.99% $1010 p/m it's a bit steep but the plus side is there is an end date to the loan and it is not a credit card.

 If your interested. in seeing what you may qualify for in lending club or you may want to pay off you credit cards faster.

I have been working on reducing my interest rate and terms on both my VW and Prius. We currently stand as follows:
VW jetta 2010 2.0t wolfsburg Debt$16,710.00 old loan 57 months remain @ 8.49% $355 p/m
Toyota Prius 2010 Debt $18,065.00 old loan 57 month remain @ 4.75% $353 p/m

The new loan will be:
48months @ 3.5% for both cars. Plus $350 gap insurance on both cars. But I am adding an extended warranty on my car that covers it till the car reaches 100,000 miles. for $2020.00 VW $429 Toyota $415

So the payments will go up a little but the cars will be paid off faster.

We are looking to lower out interest rate on our mortgage from 5.79% to 4.25% still waiting on the paper work to get that done.

What else... I am looking into getting rid of my cable bill and only having internet. I really don't watch TV but only to look at the weather and the news... All of which I can see from my phone. We watch netflix and rent movies from red box. But other then that. We don't watch that much TV. I don't know right off what that bill it. but I want to cut that bill down.

I have been pondering just paying off my wifes' Harley faster. But then again the payment is only $166.74 not sure what she is being charged for interest I need to find that out. Maybe I can refi that as well.

My GSXR is $270@6% I would refi it but I can't afford the full coverage insurance that the bank would require me to have on the bike.






Monday, November 4, 2013

October Update

So October was an interesting first full month in Lending club. Thing I have learned and things I wish I have looked out for.

So the numbers:
October start: $1000.07
October End: $1010.47
2 notes that are 16-30 days late
1 note that is in grace period

These are not very exciting numbers to me. Granted I am up $10.47 but to have 3 notes not paying on time is painful. 2 of those three notes I bought from FolioFN and one; the one in grace is a new loan.  These 3 notes slip into default; it makes me wonder how things could be, as I look at the grass on the other side of the fence. I see very very few people going into default on the note as prosper. I think that Lending club is possibly a little too lax on the issuing of these loans to borrowers that may not have all of their require information provided to prove income your work history.

I will be looking to put 500 into prosper soon to test the waters over there. Lending club seems to be lacking in services and quality as compared to prosper. But I will have to test this theory myself.
I will keep you posted as time goes on.

As for my personal debts; I am just paying the minimum for the past month as things were very tight and money seemed to be disappearing to who knows where.
I am looking to pick things up again this month, as long as money doesn't play Houdini and disappear.


Friday, October 11, 2013

Noted Mistakes

So After my initial setup of lending club I have also bought about 15 more notes in the trading platform and I have noticed a few things that I don't like and notice so mistakes that I have gotten my self into.

We I bought about 2 notes last week and these notes were not negative in value compared to the price in which I bought the notes. But... I bought a few notes last night that I thought were good, but they all show a negative income or ROI. These were cheaper notes that only have 10 months or less and so they only costed around $5+ to $10 but I started doing the math and some of these notes had to following information.


I bought a $6.00 note and then looked at the Monthly payment amount X the months left and got 6.09 Not bad but not good either on .09 cent profit.



I bought a $5.59 note and then looked at the Monthly payment amount X the months left and got 5.68. Again Not bad but not good either on .09 cent profit.

I bought a $5.71 note and then looked at the Monthly payment amount X the months left and got 5.71. This is Bad NO profit here. Waste of time.

I bought a $5.89 note and then looked at the Monthly payment amount X the months left and got 5.74. This is Bad NO profit -.15. Waste of time. Seems that a payment went through last night before I could take ownership of this note.

Again, I bought a $6.33 note and then looked at the Monthly payment amount X the months left and got 5.68. This is Bad NO profit -.65 Waste of time. Seems that a payment went through last night before I could take ownership of this note.

Again, I bought a $8.64 note and then looked at the Monthly payment amount X the months left and got 7.91. This is Bad NO profit -.73 Waste of time. Seems that a payment went through last night before I could take ownership of this note.

I bought a $9.58 note and then looked at the Monthly payment amount X the months left and got 9.73. Again Not bad but not good either on .15 cent profit. But I might miss the payment is the note doesn't settle today.

I bought a $7.79 note and then looked at the Monthly payment amount X the months left and got 7.82. Again Not bad but not good either on .03 cent profit. But I might miss the payment is the note doesn't settle today.

I bought a $8.63 note and then looked at the Monthly payment amount X the months left and got 8.79. Again Not bad but not good either on .16 cent profit. But I might miss the payment is the note doesn't settle today.

I bought a $8.59 note and then looked at the Monthly payment amount X the months left and got 8.85. Again Not bad but not good either on .22 cent profit. This is a little better, But I might miss the payment is the note doesn't settle today.

I bought a $7.73 note and then looked at the Monthly payment amount X the months left and got 7.77. Again Not bad but not good either on .04 cent profit. But I might miss the payment is the note doesn't settle today.

Hmmm. This doesn't look good... I will have to chalk these up as  minor set backs as a learning charge.

Future notes to my self and others. Make sure, double sure, that there is a + turn around and don't pick up notes that are within a 4 day window of the borrower making payments. You might miss that profit and it might cause you to be negative.

I think for now I will stop buying existing notes unless they have a larger profit margin and the borrow is in good standing on their loans. I will just stick to buying new notes for now.


Tuesday, October 1, 2013

Summary of September

So this month was very exciting. Let's go over everything a see how we are for our first month in becoming financially free and also setting up for a nice passive income.

So this month 
  1. I signed up to Amazon Affiliations 
  2. Assigned my Google Adsense account to my blog
  3. Filled out and application for affiliation with Lending Club
  4. Started isolating my debt, preparing to pay off debt.
  5. Opened an lending club account to start investing.
    • opened a Note trading account (FolioFn) as well
  6. Bought two share of stock in PSEC to earn dividends. 
Setting up the affiliation with Amazon was pretty easy only took a minute or two. (Done)

I already have an approved Adsense account so associating the account wasn't too to hard. (Done)

As for the Lending Club Affiliation I haven't heard anything back on that yet. (Pending)

I took a long look at my debts and started to pay and extra $250 at the minimum towards a credit card that is one of two cards that I have. This card has a balance as of today of $2812.67, which currently has nothing due for the monthly payment. (never NOT[double negative] make a payment) All the rest will be paid at their normal level. If I have more funds available in October I will shoot for a goal of paying $1000 towards that card. 

Now with Lending club I invested $1000 to start. My goal is to add $250 every month to invest in more Notes. 

As you can see below in the summary. I have earned $1.57 in interest since 9/19/2013 (not bad, something is better then nothing) I invested all $1000 into 40 note ($25 each). 27 loans have been issued and 13 more are still in review. 


I started out with just the defaults to get thing invested fast. this is the first portfolio that states "Auto Day 1"
Then over the next few days the notes went from "InFunding" status to "InReview" and as you can see 8 notes dropped and reduced my "Auto Day 1" from 40 notes to 32. So I had to create another portfolio for just the once that dropped over the weekend called "The Beginning" and then on the first sold week as the onces from "The Beginning" fall off. I created another portfolio called "Week 1"... but now that September is over I will just combine all the portfolios into one."The Beginning".  
I hope i didn't lose you there. :)

I also build out a prediction excel sheet to help with working in my goals. Also to track all interest earned payments received and ROI's

One of my goals in the short term is to get the account to 10,000 before the end of next year. And then look into opening another P2P investment account with Prosper.

I think this is all for now. I will add more later. I'm thinking that I will go over the excel spread sheet that I have developed once I get thing cleaned up and organized little better. 



Monday, September 23, 2013

Lending Club SnowBall

So the founds were post to my account as they stated on the 19th. (around 2pm)

I immediately hunted down loans using their quick options in the High risk range. I saw 40 loans applied for and ordered. Later that day I so one loan fall by the way side and 25$ was put back in to my available funds for me to try again. I posted another.

...

So over the weekend I noticed something pretty interesting. I was earning interest on my account balance. which is cool. Although it was only .01 it was better then nothing. So I saw that on Saturday and then another on Sunday.So I have .02 extra cents in the account now.

On Friday night I saw one loan get issued and another 1 on Saturday. So far today I have 6 more issued. Looking forward to more loans getting issued.

So I learned over the week:

  1. Loans have three states in the beginning. one is "InFunding" This is where the loans are waiting to reach full funding by the investors. 
  2. The second is "InReview" the Loan Borrower is in review. Credit appl is looked over and stuff like that, in more detail.
  3. The third is "Issued" and the loan is sent to the borrower and the payments are set in place.
  4. You earn interest seemingly everyday on the moneys you have in the account. 
  5. The the loan falls threw you get your money put back into your account to be reinvested again.
  6. This is also a daily task that seems to be one that is going to be like checking you email on you cell phone all the time to make sure all your loans take off in the beginning.Otherwise your money just sits that and does nothing for you.
If you are also interested in getting started with lending club. Just shoot me a message and I can get you hooked up with $25 extra for you to invest.


Monday, September 16, 2013

Lending Club Start Investing in Others

So I came across Lending Club a few days ago as an option for getting a loan as a much easier and lower cost than trying to go through a traditional bank.

It was on a radio show that I heard about this type of lending for Lending Club and other similar companies. So I quickly wrote it down to look them up when I had the next available chance.

Break time:

I only had a few minutes of free time. I then pulled up the site to lending club and for shits and grins I plugged in my information and did a quick loan consolidation work up for 35,000. And after a few simple questions I think there were only 5 questions total. I was looking at a pre-approval and different level of the same loan I was asking for and different interest rates. Everything from 8~% to 21% to me seemed pretty high. But then I looked at just one of my credit cards that I have had for a few years now and the interest rate on that card and how many times I have said "I'm going to pay this thing off..." And that day never came. With a set time to your loan, you are more likely to have it paid in full, better than just having a revolving credit card.

So without accepting that loan I got to thinking. And then in just a single click I started looking at the investing side of the house and how it works. I was also finding myself opening other tabs to see what others were seeing, and saying about lending club and others of the like. I searched for the company’s history and also did a search for "Scam" to see if I could see what the real risks are to investing with these types of fairly new and young companies.

So what where the results of my research?

I found that people had their complaints, but their complaints did seem valid to me. Some of these people seemed to me unknowledgeable to investing or people that didn't understand that there is a potential of risk and loss. So I started looking over video after video of investing in P2P lending to see what others and other companies where saying.

After looking at all the information I could find at the time. I found that instead of being scared and afraid of invest my money; I found that I was getting more and more eager to get started. I started talking to my wife and introduced her to the idea of P2P and how we can be on the reserving end of the interest and make of money with minimum risk but still knowing that there is risk. But at least make more in interest then our little 0.10%APR interest that I was earning on our saving with our bank. Even if I make 2% APR, I believe it would make me happy. Granted that this it's what the company is advertising. In fact people that claim to be honest about what they are making are posting on their blogs they are looking at returns in the range of 12%-15%.

So I think those numbers look really good. I could possible make that... well maybe. But it is better for me to except a lower return and get a higher return. Then to Shot high and totally miss. 
So that I am happy and not worried of pissed if I miss my mark.
I got the green light from the spouse. I filled out the investment account information and got the first part of the account information setup and after about a day and a half I had my account approved and verified and I then setup a $1000 fund transfer on Friday afternoon to start the fun.

So according to their email the funds should be available by 9/19/2013. In the mean time I have been looking over the loans that I would be interested in funding to get the investments rolling.