P2P Investing

Zirax · 19 Mar 2019 at 23:38

darkgen said:
Yep; I've had half my investment selling for the past 4 weeks. Currently sold nothing!

It took 7-10 days in Jan. I did contact them to see what was going on. Was given the queue length and guessed where I was at the time. Might be an idea but I guess many are scrambling for cash atm.

darkgen · 20 Mar 2019 at 06:33

Zirax said:
It took 7-10 days in Jan. I did contact them to see what was going on. Was given the queue length and guessed where I was at the time. Might be an idea but I guess many are scrambling for cash atm.

Fortunately I'm not in any dire need for the dough, I'm just looking to cash out from all my P2P investments. *twiddles thumbs*

Karl · 20 Mar 2019 at 17:01

General question to the thread: Why did you select P2P over stocks and shares ISAs?

Jokester · 20 Mar 2019 at 17:18

Karl said:
General question to the thread: Why did you select P2P over stocks and shares ISAs?

Eggs in baskets, P2P gains have tended to be better than S&S the last couple of years.

Zirax · 21 Mar 2019 at 23:23

Jokester said:
Eggs in baskets, P2P gains have tended to be better than S&S the last couple of years.

Pretty much this.

The amount of growth of new businesses which offer various p2p is very interesting. A few years ago it was just Funding circle, Ratesetter and Zopa. Now there are loads!

Personally a little invested in different one's. Compared to S&S its relatively straight forward.

Just a heads up, Vanguard dropped the 100k entry when they came to the UK. ISA ready, SIPP coming soon.

Beansprout · 22 Mar 2019 at 00:01

Just took ~3 weeks to sell some of my Funding Circle account. Returns are dropping and I'm guessing the stupid loans made a few years ago will start to cause more issues soon, so eventhough I lend to something like 600 businesses it's just not a risk I want to keep for only 5% versus the higher returns it gave me a year or two ago.

My Ratesetter account seems fairly boring and reliable, I'm now off to find a very large piece of wood to touch.

neviditelny · 24 Mar 2019 at 18:28

I'm looking thinking about getting one loan to pay off a couple of credit cards. Would you say it is a good idea for me to look into a loan from a provider like this?

Jokester · 24 Mar 2019 at 18:54

That's most of my funds now available, taken approximately 4 weeks.

Raymond Lin · 24 Mar 2019 at 19:00

neviditelny said:
I'm looking thinking about getting one loan to pay off a couple of credit cards. Would you say it is a good idea for me to look into a loan from a provider like this?

I would move them all to one card with an interest free period like 12 or 15 months. You pay a one off fee like 1% or something but then 0% for the duration opposed to interest on the loan accumulating every month.

Jokester · 24 Mar 2019 at 19:01

Raymond Lin said:
I would move them all to one card with an interest free period like 12 or 15 months. You pay a one off fee like 1% or something but then 0% for the duration opposed to interest on the loan accumulating every month.

2nded.

neviditelny · 24 Mar 2019 at 19:11

Jokester said:
2nded.

So you would say "go for it"?

Jokester · 24 Mar 2019 at 19:18

neviditelny said:
So you would say "go for it"?

I agree with Raymond, depending on how much you owe, look into consolidating it onto a single credit card with a 0% balance transfer deal.

neviditelny · 24 Mar 2019 at 19:28

Jokester said:
I agree with Raymond, depending on how much you owe, look into consolidating it onto a single credit card with a 0% balance transfer deal.

I looked in credit card with 0% balance transfer deals in beginning of the year but couldn't find anyone with a limit in the region I would need. Playing around a bit with Zopa the APR would be around 2,8-3,1% in the region of what I'm looking at.

Jokester · 24 Mar 2019 at 19:31

neviditelny said:
I looked in credit card with 0% balance transfer deals in beginning of the year but couldn't find anyone with a limit in the region I would need. Playing around a bit with Zopa the APR would be around 2,8-3,1% in the region of what I'm looking at.

Consider using more than 1 card in that case, you want to avoid paying that debt off with a loan if you can transfer even part of it to a 0% transfer card.

neviditelny · 24 Mar 2019 at 19:33

Jokester said:
Consider using more than 1 card in that case, you want to avoid paying that debt off with a loan if you can transfer even part of it to a 0% transfer card.

My aim is to get rid of the cards I have to be able to limit myself to spending too much and get myself more financially stable. And to have one single place to pay would be easier as well.

Raymond Lin · 24 Mar 2019 at 19:41

neviditelny said:
My aim is to get rid of the cards I have to be able to limit myself to spending too much and get myself more financially stable. And to have one single place to pay would be easier as well.

You don’t need to cancel the cards that you don’t use, in fact they actually hurt your credit rating especially if you had them for a long time. Just stick it in the bottom of your drawer or something. Keep it ticking by buying a muffin with it every 6 months.

I have like 5 cards, currently have a balance on 2. One where I consolidated a few into it and have until like next year to pay it off, the other is my daily card which I now settle in full every month.

touch · 24 Mar 2019 at 19:41

neviditelny said:
My aim is to get rid of the cards I have to be able to limit myself to spending too much and get myself more financially stable. And to have one single place to pay would be easier as well.

Just don't use the new cards.
Transfer the balance onto them then cut them up and bin them. Use something else for day-to-day spending. No possibility of spending too much on them like that.

Raymond Lin · 24 Mar 2019 at 19:53

It is also paramount that you do not use the card that you consolidate the debt into in order to get that 0% rate, because the second you add to the balance, that new balance start to accumulate debt but it will be tagged on to the end and you are paying interest on that debt for the next 12 months or so while you pay off the 0% section. Which means you are “losing” money.

Instead you have a 2nd card and then you can pay that off in full monthly. Even if it’s a £5 purchase.

neviditelny · 24 Mar 2019 at 19:59

I've looked into this a bit more now. A few cards I've looked at have offers 0% on balance transfers and the length goes between 20-28 months. So that means I would pay 0% interest on the balance transfer as long as I pay at least the monthly minimum. If I did a normal purchase on that card I would however pay the 20% APR for that purchase. Gotta do some thinking about what to do now though..

Raymond Lin · 24 Mar 2019 at 20:01

neviditelny said:
I've looked into this a bit more now. A few cards I've looked at have offers 0% on balance transfers and the length goes between 20-28 months. So that means I would pay 0% interest on the balance transfer as long as I pay at least the monthly minimum. If I did a normal purchase on that card I would however pay the 20% APR for that purchase. Gotta do some thinking about what to do now though..

Do not use that card once you moved your debt into it. Or you are paying the APR for a full 20 or so months. Don’t think of that as a credit card but a loan that you are paying back. Stick that card in your draw and divide the debt into the number of months with 0% and pay minimum the split monthly. More if you have spare.