How it works: Debt consolidation with Prosper.com
Posted on June 8th, 2012
“Debt consolidation” can sound complicated and downright confusing. But it’s really just about reducing your debt to a single monthly payment and then making a commitment to getting rid of it forever. Here’s an example:
With Prosper.com, it’s simple.
- Apply online, at your convenience and from the comfort of your home or office.
- Pay off your credit cards or other loans with the proceeds of the loan.
- Make your monthly payment on your Prosper.com loan and eliminate your debt forever.
If you’re carrying credit card balances but have been afraid to take the next step, then make today the day.
* Minimum payment requirements vary by card issuer (for another example, see this Federal Reserve Credit Card Calculator explanation). We have used a conservative assumption here, taking the greater of $25 or 2% of the outstanding balance plus finance charges accrued in the period. This example assumes that the loan proceeds, net of a $495 closing fee, are used to pay off the credit cards immediately, rather than a scenario with continued monthly minimum payments.
** If you have a Prosper Rating of B and no previous loans and take out a loan for $10,495 for five years, your interest rate will be 20.85% (23.32% APR), you will have 60 monthly payments, and your scheduled monthly payment will be $283.04. Eligibility for a loan is not assured and requires that a sufficient number of investors commit to invest in your loan. Refer to the Borrower Registration Agreement for all terms and conditions. All loans made by WebBank, an FDIC-insured Utah-chartered Industrial Bank.
Filed under Borrowers, Personal Finance Education, Prosper News, debt consolidation, featured, infographic, p2p lending, p2plending, peer-to-peer lending, personal loans | No Comments »
Using Prosper Ratings to Diversify Your Portfolio for More Consistent Returns
Posted on June 1st, 2012
In this 15-minute video, Prosper.com executives Jim Catlin, EVP of Risk, and Joseph Toms, Chief Investment Officer cover:
- Analytical insights on the performance of loans based on risk ratings (Prosper Ratings AA to HR)
- What to consider beyond the estimated return of a P2P investment
- How to use Prosper Ratings to diversify your portfolio for more predictable consistent returns
Suggested next steps:
- Read the Prosper Blog, “The Power of Diversification: 100% Positive Returns with 100 or More Prosper Notes”
- Review your current allocation by Prosper Rating. See where your portfolio needs adjusting, based on your investing style and risk tolerance. Sign in to your account.
- Use Advanced Search and/or Automated Quick Invest to set up criteria according to your portfolio allocation. You can re-invest as payments are received, or transfer funds to your account.
Diversification is an important, time-tested component of an investment strategy. Stay tuned for more content for Prosper investors that highlight the benefits of diversifying your Prosper investment.
As always, we appreciate your comments and questions. Please post a comment below.
Notes offered by Prospectus.
Prosper Marketplace, Inc. is not registered as an investment adviser with any federal or state regulatory agency. The information contained in this webinar is for informational purposes, and should not be construed as individually tailored investment advice or as a recommendation with respect to any security or investment approach. This webinar has been prepared without regard to the circumstances and objectives of its participants and should not be relied upon as authoritative or taken in substitution for the exercise of judgment by any participant. Each participant should consider the appropriateness of any investment decision having regard to his or her own circumstances, the full range of information available and appropriate professional advice. Prosper Marketplace, Inc. recommends that each participant seek independent investment and financial advice concerning any services or investments discussed in this webinar.
Filed under Lend To Others, Lenders, Personal Finance Education, Prosper Investing, Prosper News, featured, p2p lending, p2plending, peer-to-peer lending, personal loans, social investing | No Comments »