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My Lending Club Account Performance Update 5

May 13, 2011 | Investing | My Ramblings | 3 Comments

Here is another update of my Lending Club Account Performance.  The last update was on September 1, 2010, over 9 months ago.

Since I opened my account in August 2009, I’ve earned a total of $5,497.60 in interest; however, this includes about $1,000 with signup bonuses.

Since my last update, Lending Club enticed me to add additional $20,000 to my account for a $400 bonus for in immediate 2% return. So my initial investment is now $50,000.

Now of the negative news; I currently have 5 notes late 16-20 days and 12 notes late 31-120 days at a potential loss of $363 and $706, respectively.  To date I’ve lost $1,088 due to loan charge off (borrowers not paying off loan) but an additional $1,000 loss maybe coming in the near future due to late payments. Currently, the majority of losses are due to B and C investors with only one A investor.

To combat future late payments and defaults, I’ve continued to reinvested monies with A investors at $25 to $50 per note.  This should lower future risk; however, my rate of return will continue to drop.

One area of improvement on my end is picking better notes to invest in.  This will lower default and increase rate of return.  After filtering notes, I invest in every note without reading each note requirement and even asking questions of the borrower to determine risk. 

I currently have $3,000 in funding notes at $50 each in all A borrowers.  I have an available $7,758.89 in cash that I will invest over the next several weeks.  The cash available is from loan payoffs that I haven’t re-invested.

See screenshot below of my account.

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Where Your Tax Dollars Go

April 16, 2011 | Taxes | 2 Comments

If you are curious of where your tax dollars go, Yahoo! Politics created the chart below highlighting 2010 Federal Tax Receipt for a married couple with 2 dependents making $69,800 with a federal tax bill of $6,993.  The top 5 entities where your tax dollars go are Social Security, Defense, Medicare, Low-Income Assistance and Medicaid.

How to Survive a Financial Disaster

April 7, 2011 | Financial Tips | Guest Post | No Comments

Even though you thought you were prepared, financial disaster struck. You were wiped out…all your money gone…your plans put on hold, perhaps indefinitely. What are you supposed to do now? How do you start over again? Your finances may not be that bad, but economic woes are commonplace nowadays. Who says you won’t be the next one to wake up and discover your bank account says zero? Chin up. There are ways to bounce back. Following are a few tips on how to survive a financial disaster.

It’s Only Money

Although this may not be what you want to hear, remember, it is only money. Sickness, accidents, storms, natural disasters, the death of a love one, these are all things that matter a whole lot more than money. Sure, money can help you live better, and we all need it to survive, but suffering a financial setback isn’t nearly as bad as suffering a physically debilitating trauma.

Emotional Rollercoaster

Even though losing a considerable portion of your financial worth, or all of it, is not necessarily life threatening, it could have a significant impact on your life. Depending on your personality and outlook on life, it could be a minor delay in your life’s plan or a disaster you’ll never recover from. The choice is really up to you. Some people decide to simply give up, while others prefer to make lemonade instead. Whichever course you choose, you’re bound to ride an emotional rollercoaster until you sort matters out.

Time for Action

Now that the philosophizing is over, it’s time to get down to doing something about your financial troubles. The first step is to accept what’s happened and take a close look at your financial situation. Upon further reflection, it may not be as bad as you thought. Even if it is an unmitigated disaster there are still things that can be done to help you recover.

Make a Plan

Take stock of your present situation. Reflect on what got you into the financial mess you’re currently in and make a conscience decision to not make the same mistakes. If you’ve drastically overspent then you know you’ll have to be a lot more careful in your spending. If you lost a bundle in the stock market, don’t think you’ll strike it rich by putting whatever you have left into a ‘sure thing.’ It’s like gambling–you may as well go to a casino and bet everything on black. No, if you hope to recover it’s imperative that you assess your situation and come up with a viable plan that involves hard work and intelligent decisions, not a stroke of good fortune.

Assemble Your Assets

In order to implement a plan to bounce back from an economic disaster it’s important to know what you have to work with. Make a list of your assets. This is what you’ll be using to begin your financial recovery. It’s essential that you know where you stand. If you owe a lot of money that must be factored in. if you ever hope to regain a good credit rating it’s imperative that you pay off your debts.

Determine Where You’re Going

A financial recovery plan must begin with an awareness of your starting point. There’s no sense lying to yourself; it won’t solve anything. Instead make peace with your situation and be honest in evaluating a possible recovery. Only after doing that can you take the next step, which is to decide where you would like to end up. Again it’s important to be honest with yourself. Choose a realistic goal, one that isn’t necessarily easy to attain, but a target that is truly obtainable. Going from dead broke to multimillionaire status overnight is something that is likely to only happen in a movie. Instead aim for a reasonable objective. Don’t stop dreaming, but be sensible.

S.M.A.R.T.

In setting a goal, it may be prudent to use the S.M.A.R.T. principle: Be Specific in choosing a goal. Decide on a way to Measure your progress. Make sure your goal is Attainable. Be Realistic in selecting a destination. Plan your recovery to happen in a Timely manner.

Fine-Tuning

Executing your carefully planned recovery is where you’ll need to be firm in your commitment, but not so firm that you can’t fine-tune the plan along the way. There are bound to be unexpected hurdles to overcome, but if you stick to your basic plan, you should ultimately reach your goal of financial recovery. This is the Land of Opportunity. If you believe it, you can achieve it. Never give up. The English language is full of platitudes, but even though they may sound trite, through hard work and dedication it is possible to recover from a financial disaster.

Guest post from Bailey Harris. Bailey writes for www.insurancequotes.org.  Find Bank CD rates at BankOnCIT.com.

Car Insurance Tips for Senior Drivers

March 29, 2011 | Insurance | No Comments

Every driver wants to have the best premium rates for his or her car insurance and when the income is fixed and there exists a list of essential expenses and purchases, as in the case of senior citizens, there is a need of discounts over the premiums. Most of the senior people are not aware of the fact that there are various auto insurance companies that offer benefits for mature and older drivers. So if you are looking for tips to aid you in saving money over your car insurance, just keep reading!

If you have been with the insurance company for years, try out some negotiation with your insurance provider otherwise you can switch your auto insurance company after reviewing different insurance quotes and deals offered by different car insurance providers. This will help you in saving a lot over your car insurance and offers you best coverage. Since you are a senior citizen, you are eligible for certain discounts that are offered by the companies over the insurance premiums. It is presumed that the period of driving at old age is less so you do not have to pay more premiums. With age, the premiums may vary and so do the discounts.

Having a good on road record works in favor of the older drivers and can draw them cheaper auto insurance. A well equipped safe car can help the senior people in their driving and thus make them les vulnerable to accidents which directly mean that their chances of claiming for insurance are less. There are few insurance companies that offer discounts to the seniors if a certain amount of driving mileage is over a specific age. With the help of above mentioned tips, you can easily get yourself cheaper car insurance and thus can lead a happy life without caring for your insurance premiums.

Can Leasing a Car Save You Money?

February 17, 2011 | Financial Tips | Guest Post | No Comments

Purchasing a used vehicle is often perceived as buying someone else’s problems. As a result, when it’s time to get a different car most people prefer a new one. Once the choice to get a new car is made there is still one more decision to make: buy or lease.

Owning a Vehicle

With an outright purchase you own the vehicle. Once it’s paid for no one can tell you how to treat it, or how it can or should be used. If you plan on keeping it for decades it doesn’t really matter what it looks like. Not washing or waxing it is irrelevant because you’re simply going to keep it until it stops running. The number of miles you put on the car is also strictly up to you. Of course, if you care about the trade-in value, you’d be smart to take care of the car. Its value may remain high if it is well taken care of and has low mileage.

Leasing a Vehicle

Taking out a lease it’s a slightly different story. You never really own the vehicle. The very definition of the word says you are merely entitled to the use of it for a specified period of time–provided certain conditions are met.

With an auto lease you’re obliged to take reasonable care for the duration of the lease. Turning the vehicle in with a lot of damage could very likely result in having to pay a penalty. You’re also limited on how many miles you can put on the car during the lease period. If you go over the allotted miles, you pay a penalty.

Trade-in value is not a consideration. You just turn the vehicle over to the leasing company. If there is no extraordinary damage and the miles are within the allowed maximum the deal is simply over with.

Financial Considerations

For some the choice of buying or leasing comes down to one basic consideration: which is cheaper in the long run? There are a lot of factors involved and both methods have their merits.

Leasing

  • If the percentage rate and down payment are the same, you’ll end up paying less per month with a lease.
  • When the payment period is ended you simply walk away from a lease, in which case you owe nothing, but have no vehicle. If you like the leased vehicle, you’ll have the opportunity to purchase it. Otherwise you’ll have to either lease or buy a different car.
  • Leases carry conditions, such as a limit on the number of miles you’re allowed during the lease period. If you exceed the limit it will cost extra.
  • As long as you take care of the leased vehicle it will retain its value and won’t cost you anything extra for damage at the end of the lease.
  • By continually leasing you can always be driving a new vehicle.

 

Owning

  • If you paid cash or have your vehicle paid off when you trade-in your car–in other words, if you own it outright–it will probably cost you less to buy than to lease.
  • If you own your car, you can put as many miles on it as you choose, but remember, a high mileage vehicle is worth significantly less at trade-in time.
  • Owning a vehicle means having value in the car to use toward a down payment for another vehicle.
  • You can trade-in the car at any time. However it may not be a financially sound decision unless the car is worth more than you owe on it.
  • Buying a vehicle is less complicated than leasing. Simply put, as long as you make the payments on time the car is yours to do with as you will.

 

Can leasing a car save you money? As you can see, there are pros and cons to either choice. The bottom line is you’ll have to negotiate with the dealer, discuss all your options, and then decide whether buying or leasing is the best choice for you. Like any other decision you make in your life, gathering as much information ahead of time is the intelligent thing to do.

Guest post from Bailey Harris. Bailey writes on many topics, including Auto Insurance Quotes for www.carinsurancequotes.net.

Personal Loans for the Person with No Collateral

February 6, 2011 | Personal Loans | No Comments

Getting emergency cash can be difficult for almost anyone in a down economy. But the hopes for finding online loans for anyone without collateral to offer might seem positively dim.

After all, most people without collateral to offer may well not have a very good credit rating. But there is a form of short-term financing available to individuals who have jobs. This is a personal loan in the form of a paycheque advance. More recently the arrival of online sources of quick quid have made such loans much easier to get and more popular in recent years.

How can a working person get online loans? And how fast can the cash arrive?

The process is relatively simple and takes very little time. With most lenders of quick quid, it happens in three steps:

1. Find a lender online. Review the terms of their online loans to compare between paycheque advance companies.

2. Complete the online application. Lenders generally look to see if you have a job, how much you earn in a pay period, and if you have a bank account. What is not necessary is a very good credit rating. Also, there are no collateral requirements with online paycheque fast cash loans.

3. Check with your bank. The online loans are deposited directly into your account, and can be accessed in as little as one hour (or overnight, depending on the time of day that you submit your application).

The use of an online paycheque advance loan is unrestricted. For many, it can be used to cover household expenses or emergencies, such as an unplanned trip. In some cases, borrowers were travelling abroad and needed the cash on their trip. With access to a foreign ATM it is possible to get money simply through the use of a smart phone.

Online loans against a paycheque are like all others in that they need to be repaid. The earlier a borrower finishes the repayment, the lower the costs of the loan overall.