Prosper Loans Review: July 2013 Edition

This is my seventh prosper loans review post, if you missed the first one you can check it out here. I started doing these posts to keep track of my peer to peer loan project I started this year. Things have been going great so far. I hope you enjoy watching along to see how it goes.

Last month was the halfway point of this experiment. My account had continued to grow but I have steadily been behind on reaching my goal of earning $25 a month in interest. But regardless, like I have mentioned many times before, I am still enjoying the process as a whole and still think my progress has been acceptable. Here we go…

During the month of July I purchased 9 new notes for $25 a piece for a total of $225. The notes I purchased had yields of 8.69%, 19.14%, 8.69%, 13.34%, 12.69%, 11.53%, 11.69%, 10.49%, and 9.74%. The average of all these loans was 11.77% with 2 credit ratings of AA, 6 A, and 1 C. I see that getting even just one lower rated loan in the mix can really make a difference in your possible return rate. I still realize though that even one default can drastically effect my return. Luckily, through the course of this experiment I have not had any loans default. Still, I cannot make any kind of conclusions because the life of these loans are still very young.

Monthly Breakdown

Over the month of July I earned $10.53 in interest and received $43.33 in principal payments. Like every month I am still behind where I need to be to reach my goal of $25 a month in interest. If I was on pace to meet my goal I would have received about $14.63 in interest so I am about $4.10 behind. One of the notes I purchased in June paid in full very quickly. This accounts for the larger than usual principal payments.

Yearly Breakdown

Month Interest Principal
January $0 $0
February $1.88 $2.37
March $3.70 $4.89
April $6.25 $10.05
May $8.08 $12.94
June $9.92 $16.80
July $10.53 $43.33
Total $40.36 $90.38

 

My grand total of loans purchased in 2013 is 47 (9 new in July that did not contribute interest). All at $25 a piece for a total yearly investment of $1175. This year I have also made a total of $40.36. It’s not much but it would almost pay for one month of my Straight Talk phone plan. The way I look at my earnings is by thinking how many bills or what can of bills I can pay with something.

Look back for my August update coming soon!

If you would like to sign up with Prosper.com you can use this link I provided. This link is an affiliate link. If you use this link to sign up with Prosper I will receive compensation at no extra cost to you. As always, if you have any questions please contact me. I will also use all income generated from my affiliation with Prosper to reinvest back into my Prosper account. Thank You!

As always, thanks for stopping by.

Ian

The 30ss

About 30SS

Thanks for stopping by The 30 Something Student, I'm Ian! I went back to college to make a change in my life and want to share with you what I have learned. You can connect with me on Google+

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2 Responses to Prosper Loans Review: July 2013 Edition

  1. Simon Cunningham October 19, 2013 at 3:56 pm #

    Hi Ian. Nice work on another small step towards your goal. Those high interest loans can really make the difference.
    Simon Cunningham recently posted..The Mission of LendingMemo (plus $1000 Reader Giveaway)My Profile

    • 30SS October 24, 2013 at 7:21 pm #

      Thanks Simon! That’s how I am looking at it. It has been getting tougher for loans to meet my criteria lately though.

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