Akash Invests – Lending Club
Lending club is a weird investment where you can loan out your money to random strangers at high interest rates. Basically, it lets you become a loan shark! Anyways, I invested in lending club at the start of 2017 and put in $5,500.
Since then it seems that my principle has grown to 6.3k, which doesn’t seem to bad (roughly 5% return). However, what has been happening is that my principle has been going down in value because a lot of people are defaulting on my notes.
I made the foolhardy mistake and only invested in the highest risk notes (as I wanted to get the highest return). Unfortunately, that decision seems to be working against me since my return so far year to date has been negative 34%. I’ve been getting a lot of defaults (people basically taking my money and then never paying it back).
I predict my balance to continue dropping, potentially below $5.5k. This is an investment I think I will probably lose a lot of money on.
Anyways, I don’t really recommend lending club since your investments are not secure – people can just straight up take your money and have no physical repercussions if they decide to default.