Peer to peer lending, where to start

RomfordNavy

agent69 wrote: »

This is not a good reason for getting into P2P. The risks are high with very little visibility of what's going on behind the scenes.



If you were into P2P for the last 8 - 10 years you have probably done well out of it, but the COL fiasco is a stark warning of what can happen when things go wrong.

So if P2P has become too risky what other investments are less risk?

Malthusian

RomfordNavy wrote: »

So if P2P has become too risky what other investments are less risk?

Cash and NS&I.

You need to decide what level of risk you are prepared to accept, then start looking at which investment is suitable.

What is the circumstance that made you think you need more income? Going up the risk scale because "circumstances" mean you need more income is a very bad reason to take more risk. There is a saying that "if you don't need the return then don't take the risk" but the reverse is not true. An unsuitable investment does not become suitable because you need more income. You are at risk of making a poor decision, losing money, and then finding yourself in even worse circumstances.

P2P has not "become too risky", it has always been very high risk (certainly at the "pick your own" Collateral end), and some of those risks have come to pass. A dice doesn't change shape when it rolls a 6.