I am a little tempted to throw 1-2K into this and see how it works out. It would be nice if the return could fund a couple of my smaller hobbies etc.
For $2000 at an average 13% interest rate and no losses....you'd see a gross income of ($260 annually) about $21.66 / month (before fees and witholding taxes). Much better than the bank.....
On the other hand, if you had a mortgage at say 4.50% and were on a marginal tax rate of 33% then.....
$2000 @ 13% = $260 p.a. less 33% = $114.20 net less interest on mortgage ($90) = net return $24.20 per annum or an extra $2 a month
Hardly seems worth it - I can save $2 a month by skipping half a coffee or showering at the gym instead of home.
That's a depressingly thoughtful post lol
Maybe I won't bother after all.
Sorry made a mistake with my figures (shouldn't try and post calculations on my phone)
$2000 @ 13% = $260 p.a. interest less 33% = $174.20 net less interest on mortgage ($90) = net return of $84.20 per annum = $7 per month - much better
You can tweak it slightly if you claim the $90 interest as a business expense thereby reducing your tax (net return $113.90 p.a. = $9.49 per month)