Comments on: In the Realm of Good & Bad Debt, Where Does Social Lending Stand? http://beingfrugal.net/2009/01/26/lending-club/?&owa_medium=feed&owa_sid= Save Money @ BeingFrugal.Net Wed, 01 Feb 2012 18:52:59 -0800 hourly 1 http://wordpress.org/?v=3.3.1 By: Yosef Katz http://beingfrugal.net/2009/01/26/lending-club/#comment-27895 Yosef Katz Thu, 30 Dec 2010 02:35:30 +0000 http://beingfrugal.net/?p=1483#comment-27895 I find Lending Club's site excellent for browsing. I am very excited to find it as a potential investment. I have worked hard to pay my debt down and now I am virtually debt free (except a few revolving small balances monthly and a small auto loan (now under 13K))! As soon as I can clear $5,000 or more to invest (this cannot come from my current investments or from my emergency cash fund) so I can get a PRIME account (which allows greater diversification) I will do so. I am sure with a diversified account and with the current financial waters the Lending Club can be a great investment opportunity. I find Lending Club’s site excellent for browsing. I am very excited to find it as a potential investment. I have worked hard to pay my debt down and now I am virtually debt free (except a few revolving small balances monthly and a small auto loan (now under 13K))! As soon as I can clear $5,000 or more to invest (this cannot come from my current investments or from my emergency cash fund) so I can get a PRIME account (which allows greater diversification) I will do so. I am sure with a diversified account and with the current financial waters the Lending Club can be a great investment opportunity.

]]> By: hermes handbags http://beingfrugal.net/2009/01/26/lending-club/#comment-25242 hermes handbags Mon, 05 Jul 2010 08:42:21 +0000 http://beingfrugal.net/?p=1483#comment-25242 Lending Club is an interesting concept. I have no problem with moderate debt. It is the American way… Actually the American way is to become completely over our heads in debt until we can no longer function. Lending Club is an interesting concept.
I have no problem with moderate debt. It is the American way…

Actually the American way is to become completely over our heads in debt until we can no longer function.

]]> By: gerald http://beingfrugal.net/2009/01/26/lending-club/#comment-21156 gerald Sun, 13 Dec 2009 08:41:30 +0000 http://beingfrugal.net/?p=1483#comment-21156 Hello, I've just come across the concept of a Lending Club, and I don't quite understand it as yet. Obviously one person is lending another money. What I'd like to know is how does a "lendee" contact a "lender"? What guarantees must a person give that the money will be repaid. How are the amounts of the payments reached? What guarantees are needed to ensure that the loan is safe? How are the rates of interest arrived at and who does the calculating? Is there a central headquarters which enforces rules and regulations etc.etc. In fact, anything and everything that an ignorant person should know. But please send to my email address, gwilson1979@gmail.com Thank You Hello,

I’ve just come across the concept of a Lending Club, and I
don’t quite understand it as yet. Obviously one person is lending another money. What I’d like to know is how does a “lendee” contact a “lender”? What guarantees must a person give that the money will be repaid. How are the amounts of the payments reached? What guarantees are needed to ensure that the loan is safe? How are the rates of interest arrived at and who does the calculating? Is there a central headquarters which enforces rules and regulations etc.etc.

In fact, anything and everything that an ignorant person should know.
But please send to my email address, gwilson1979@gmail.com

Thank You

]]> By: cheap cindy http://beingfrugal.net/2009/01/26/lending-club/#comment-14343 cheap cindy Sun, 01 Feb 2009 18:26:09 +0000 http://beingfrugal.net/?p=1483#comment-14343 I think lending clubs are okay and a good choice in an emergency. As with any debt, know your limits. <abbr><em>cheap cindy’s last blog post..<a href="http://cheapcindy.blogspot.com/2009/01/eating-out-cheap-half-price-or-less.html" rel="nofollow">Eating Out Cheap - Half Price Or Less</a></em></abbr> I think lending clubs are okay and a good choice in an emergency. As with any debt, know your limits.

cheap cindy’s last blog post..Eating Out Cheap – Half Price Or Less

]]> By: Matt SF http://beingfrugal.net/2009/01/26/lending-club/#comment-14340 Matt SF Sun, 01 Feb 2009 17:12:35 +0000 http://beingfrugal.net/?p=1483#comment-14340 Nice post. One thing most people don't hear about P2P lending is that you aren't making the entire loan to just one person. I've spoken about Prosper and Lending Club to several friends, and question #1 always comes back "what if person X can't repay my $1000?". So it's a bit of marketing and/or facts issue since that P2P lenders haven't tackled just yet. Fact is, you're building a portfolio of consumer debt analogous to a mutual fund where the risks are spread out over a diversified number of smaller loans, not just one or two large loans. <abbr><em>Matt SF’s last blog post..<a href="http://steadfastfinances.com/blog/2009/01/30/vulture-investing-buying-the-joneses-stuff-at-half-price/" rel="nofollow">Vulture Investing: Buying the Joneses Stuff at Half Price!</a></em></abbr> Nice post. One thing most people don’t hear about P2P lending is that you aren’t making the entire loan to just one person. I’ve spoken about Prosper and Lending Club to several friends, and question #1 always comes back “what if person X can’t repay my $1000?”.

So it’s a bit of marketing and/or facts issue since that P2P lenders haven’t tackled just yet. Fact is, you’re building a portfolio of consumer debt analogous to a mutual fund where the risks are spread out over a diversified number of smaller loans, not just one or two large loans.

Matt SF’s last blog post..Vulture Investing: Buying the Joneses Stuff at Half Price!

]]> By: Sunday Money Roundup - Nothing To Share Edition. | My Two Dollars http://beingfrugal.net/2009/01/26/lending-club/#comment-14336 Sunday Money Roundup - Nothing To Share Edition. | My Two Dollars Sun, 01 Feb 2009 14:01:23 +0000 http://beingfrugal.net/?p=1483#comment-14336 [...] Frugal talks about social lending and whether it is a good or bad idea. I am a fan, that’s for [...]

[...] Frugal talks about social lending and whether it is a good or bad idea. I am a fan, that’s for [...]

]]> By: DDFD at DivorcedDadFrugalDad http://beingfrugal.net/2009/01/26/lending-club/#comment-14269 DDFD at DivorcedDadFrugalDad Wed, 28 Jan 2009 01:12:36 +0000 http://beingfrugal.net/?p=1483#comment-14269 My view of any debt is that "good" debt is debt used to finance an income producing asset. Applying that to peer-to-peer lending, I would feel better lending to a long-time manager of a fast food restaurant who wants to buy their own franchise. That type of loan has a high potential to help someone (the manager and their family, as well as the employees) and to be repayed. My view of any debt is that “good” debt is debt used to finance an income producing asset.

Applying that to peer-to-peer lending, I would feel better lending to a long-time manager of a fast food restaurant who wants to buy their own franchise. That type of loan has a high potential to help someone (the manager and their family, as well as the employees) and to be repayed.

]]> By: Chris Ronk http://beingfrugal.net/2009/01/26/lending-club/#comment-14268 Chris Ronk Wed, 28 Jan 2009 00:30:19 +0000 http://beingfrugal.net/?p=1483#comment-14268 Lending Club is an interesting concept. I have no problem with moderate debt. It is the American way... Actually the American way is to become completely over our heads in debt until we can no longer function. *sigh Lending Club is an interesting concept.
I have no problem with moderate debt. It is the American way…

Actually the American way is to become completely over our heads in debt until we can no longer function.

*sigh

]]> By: Pinyo http://beingfrugal.net/2009/01/26/lending-club/#comment-14256 Pinyo Tue, 27 Jan 2009 15:20:22 +0000 http://beingfrugal.net/?p=1483#comment-14256 I think peer-to-peer lending is fine. I like the concept and how it works. Just like many things in life, it's also open to misuse and abuse -- and that's when things go bad. <abbr><em>Pinyo’s last blog post..<a href="http://www.moolanomy.com/1155/portfolio-rebalancing-and-buying-underperforming-assets/" rel="nofollow">Portfolio Rebalancing and Buying Underperforming Assets</a></em></abbr> I think peer-to-peer lending is fine. I like the concept and how it works. Just like many things in life, it’s also open to misuse and abuse — and that’s when things go bad.

Pinyo’s last blog post..Portfolio Rebalancing and Buying Underperforming Assets

]]> By: Joseph http://beingfrugal.net/2009/01/26/lending-club/#comment-14253 Joseph Tue, 27 Jan 2009 14:42:34 +0000 http://beingfrugal.net/?p=1483#comment-14253 the question is misleading. is not if lending club debt is good or bad? the question i "what are you intending to use the money and how you plan to pay it back?" If the answer is "to get out of trouble and not sure how I'm going to pay it" then it is bad... if it is "to get out of debt, and I will pay with savings from high interest rate debt" then it's good. I used lending club to pay my credit cards off and have since prepaid the loan. I'm now a lender because I believe in helping others out. Of course there are a few that default, but it is your responsibility to choose the loans you think are used for "good reasons". the question is misleading. is not if lending club debt is good or bad? the question i “what are you intending to use the money and how you plan to pay it back?”

If the answer is “to get out of trouble and not sure how I’m going to pay it” then it is bad… if it is “to get out of debt, and I will pay with savings from high interest rate debt” then it’s good.

I used lending club to pay my credit cards off and have since prepaid the loan. I’m now a lender because I believe in helping others out. Of course there are a few that default, but it is your responsibility to choose the loans you think are used for “good reasons”.

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