Need advice on peer-to-peer (P2P) Lending

mulderat

Hi
Can anyone please give me any 'laymans' advice on the pros and cons of peer-to-peer lending?

I have a modest sum, which if put into a savings account would generate enough interest for me to buy a sandwich - which is why I am looking at peer-to-peer.

I am a complete novice and any help would be appreciated.

Thanks

masonic

The main 'pro' is that you can achieve better returns than conventional savings.
The main 'con' is that your capital is at risk, unlike conventional savings.

P2P is not for money that would form part of your emergency savings, or money you would be looking to spend in the next few years.

Carolinemjs

This link might help
http://www.garretgalland.com/landing/the-bank-of-you-x-short?utm_campaign=GG-010&utm_medium=EM&utm_source=ggr

bigadaj

Carolinemjs wrote: »

This link might help
http://www.garretgalland.com/landing/the-bank-of-you-x-short?utm_campaign=GG-010&utm_medium=EM&utm_source=ggr

Well apart from being an American site and appearing to be an uncritical promoter without emphasising the risk of loss of capital and defaults it looks great.

jimjames

mulderat wrote: »

I have a modest sum, which if put into a savings account would generate enough interest for me to buy a sandwich - which is why I am looking at peer-to-peer.

If it's a "modest" sum then have you already looked at the accounts that would give capital protection to your savings and offer decent rates from 3% to 5%?

mulderat

Yes I have and I understand where you are coming from.........hence me asking for help here.
Thanks for your reply.

bigadaj

mulderat wrote: »

Yes I have and I understand where you are coming from.........hence me asking for help here.
Thanks for your reply.

Have a read over the p2p independent forum, it's a useful guide but will take a while to digest.

kidmugsy

Have a look for the posts of jamesd: he's a great enthusiast for the things.

novice_1

The P2P blog (UK based) has monthly income reports that are quite useful for someone new to p2p lending.