A new loan funded (At wit’s END – $15,000 at 18.5%). I participated via a manual bid the loan was Autofunding. The borrower had B credit, a 72% DTI, and is a homeowner. As a reminder my standing orders (and manual bids) only find loans with 0 current delinquencies, 10 or less delinquencies in the last 7 years, and 2 or less public records in the last 10.
With this loan I have $4,747.15 in principal across 74 loans ($64.15 per loan) with an weighted average interest rate of 17.66% and an account value of $5,190.26. Each loan on average is 1.2% of my portfolio with a maximum in any one loan being 3.8%.
Here is the listing:
For the readers that believe in reading the actual description without modification:
Purpose of loan:
Get out of debt for once & all - only want ONE payment!!
My financial situation:
I’m a very hardworking - working two jobs right now to get ahead and I think I’m getting farther in. I’ve been at my main job for almost 5 years and my part-time job for almost 1. I’m very stable and just want to get my head above water - I don’t want to rob Peter to pay Paul.My monthly budget:
Mortgage/rent: $1200.00
Insurance: $150.00
Car expenses: $400.00
Utilities: $300.00
Phone, cable, internet: $75.00
Food, entertainment: $
Clothing, household expenses $
Credit cards and other loan payments: $450.00
Other expenses: $300.00
—————————————
Total monthly expenses: $2875.00
Here is a graph of all loans on Prosper with B credit and a DTI of < 72% and Loan Amount $15,000 +/-$5,000 funded in the last 100 days:
| Number of Loans | Average Amount Borrowed | Weighted Average | Standard Deviation |
|---|---|---|---|
| 103 | $14,071.44 | 14.5% | 3.01% |
The weighted average plus 1 sigma is 17.51%. The weighted average plus 2 sigma is 20.52%. This loan is between the 1 sigma and 2 sigma higher than the mean.
What do you think?
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2 comments ↓
I have D credit and 200% DTI (big chunk of student loan debt in there - I am making pmts on the student loans), and 2 public records in the last 10 years. All my active open accounts were closed and charged off several years ago when an extended illness and hospitalization made me unable to work and therefore without income. A collector has bought up most of my non-student loan debt and is now coming after me. I don’t have much income but I live frugally and can afford to pay $250 per month. If they sue me I will have more public records and judgments at 9%. I’d like to avoid that, but don’t think I could get a comparable interest rate anywhere else. (Needless to say, on my income, homeownership has never been an option.)
Should I just wait for the suits and judgments and pay them at 9% or are there any other feasible options for me? (I’m also trying to avoid bankruptcy but might bail out if they hit me with tons of fees, court costs,etc.)
Minimum Wage –
I am not a professional lawyer, but here is my opinion.
You will not do better than 9% at Prosper. Given what you have told me I think 29% (maximum rate) might even be pushing it.
Debt buyers pay pennies on the dollar for debt. They want to collect without occurring fees and costs. If you are serious about avoiding bankruptcy I would offer them $0.20 on the dollar (again use your own judgement on actual amount) and see what happens.
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