I am putting this question out to my readers today as I need some advice. I get a few dollars from Lending Club from loans that I have made to different people. My goal with this investment strategy is to finally build up enough loans where the repayments are enough to fund new loans.
With all the excitement of using the incoming funds as a snowflake payment to pay off debt I think I have lost sight of this goal recently. I am asking for your help now to make a decision.
Should I continue to withdraw the money and throw it at my car loan or should I roll that money into funding new loans and continue with my normal debt repayment schedule?
I’d do a deal with myself & throw the money at my car loan until it is paid for, and then once that loan is settled, then I’d do the right thing and divert it into more loans. That way everybody ultimately benefits.
If the interest earned on the LC loans is greater than the money saved by paying off the loan earlier? If so, I would keep reinvesting the money.
I’d have to agree with Net Age Web Design. I would much rather pay off the car loan and then invest in funding the new loans.
I took the money in from Lending Club and it has been transferred to the Snowflake fund which is currently being used to target the car loan.
I thought about it and realized that I would rather be out of debt than having to depend on some income from loans that may go into default at any time.
Thanks for your help.
I think that was probably your best option. While the LC loans looked tempting, it would be diverting money away from your debt, ultimately delaying the time when you become debt free. You make a good point about the loans potentially defaulting.
throw it to your car loan