I went when I was really young. I think I mainly visited resorts and amusement parks.
P2P Finance?
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Hey - this is kind of intriguing - something like Ebay for personal loans - check out http://prosper.com/
Anyone else heard of this? Seems like a neat way to cut out the middleman on your investments. I’m kind of interested, but it’s for US residents only. For Canada, some folks are working on a site called http://communitylend.com but it won’t be live until fall.
Here’s a GIF that basically explains it.
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And when the borrower declares bankruptcy?
Sure do like them cute pictures tho.
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I think it’s a great idea. Let’s people become private banks. They’d have to offer premiums because they are not federally insured. However, the broker/auction house could easily insure the lenders against bankruptcy for a modest 1% fee. (You charge 5% but only get 4% APY.)
I’d do it. I’d pull everything except my 401(k) and Roth out to do it. But that’s because personal loans actually go for closer to the 10-12% mark while secured loans average in the 6-7% range.
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It’s too soon to judge default rates b/c the site has not been around that long, but a couple points:
Most people spread their loans around - eg. $100 here, $50 there - so you minimize risk by diversifying.
One drawback I see is that the money is not liquid - it’s three-year loans, but you can’t sell your loan to others once it’s been loaned.
At any rate, it will be VERY interesting to watch. Will this start to compete with banks and other commercial lenders, and explode like ebay? Or will it go nowhere, or down in a fireball of lawsuits.
prosper.com does have collection agencies that will go after debtors. It’s actually a loan from prosper, and then prosper resells the loan to all the “lenders”.
Well, cool concept anyway. When the Canadian one starts, I’m going to put in a $100 just as an experiment.
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Hey guys I need some cash for my Jamaican vacation 8-). Who wants to loan me 5G unsecured :-D
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@froodster:
It’s too soon to judge default rates b/c the site has not been around that long, but a couple points:
Most people spread their loans around - eg. $100 here, $50 there - so you minimize risk by diversifying.
One drawback I see is that the money is not liquid - it’s three-year loans, but you can’t sell your loan to others once it’s been loaned.
At any rate, it will be VERY interesting to watch. Will this start to compete with banks and other commercial lenders, and explode like ebay? Or will it go nowhere, or down in a fireball of lawsuits.
prosper.com does have collection agencies that will go after debtors. It’s actually a loan from prosper, and then prosper resells the loan to all the “lenders”.
Well, cool concept anyway. When the Canadian one starts, I’m going to put in a $100 just as an experiment.
I predict “fireball of lawsuits”.
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Perhaps. But it will be interesting either way.
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