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307 posts

Ultimate Geek
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  Reply # 1722083 17-Feb-2017 22:59
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networkn:

 

logo:

 

Linuxluver:

 

networkn:

 

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)

 

 

 

 

 

 

 

 

 

 




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Uber Geek
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  Reply # 1722117 18-Feb-2017 08:22
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Sam91:

 

networkn:

 

This was probably addressed earlier, but who is responsible for chasing people who don't pay etc?

 

 

 



https://www.harmoney.co.nz/how-it-works/collections-process?_ga=1.77862868.1739978221.1484207135#arrears-30

I have just over $1000 invested. Based on my experience so far, I would avoid E and F grade loans if you're only investing 1-2k. One of my F grades has been charged off, which has seen my RAR drop from around 12% to 6.89%. I currently have an E grade loan in arrears as well which will probably be charged off soon. If I had lots of money to invest, I certainly wouldn't avoid E and F grades, but at 1k, I definitely won't be going near them again. If you're going to invest 1-2k I would recommend sticking to one note ($25) per loan in order to diversify as much as possible.

Thanks for the update Linuxlover.

 



You're welcome. I avoid the E and F loans too. The interest is really high, but the risk is also very high. Even the D loans are worth a miss......but from A to C the loans default rarely.....once for me out of (cumulative over time, including re-writes) about 400 loans. So far.  





____________________________________________________
I'm on a high fibre diet. 

 

High fibre diet




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  Reply # 1722122 18-Feb-2017 08:34
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logo:

 

Linuxluver:

 

networkn:

 

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. 

 

 

True.

While you carry debt - even "cheap" debt like a 4.5% mortgage - any sort of "savings" is actually a cost unless it nets (after fees / losses / taxes) you more than the 4.5%......which is possible in this case (Harmoney). It isn't a net loss.

You're still ahead the $2 / month.....(your example) whereas every other form of 'consumer' investment would see you losing money for saving....unless you bought Tesla in 2008 at US$13....and it's now worth over US$230 / share. 

I've got a reasonable sum invested and the monthly return is around $200. I have a mortgage, but we're going to sell one of the houses this year and clear it. At that point, this will simply be very modest useful income. 

  





____________________________________________________
I'm on a high fibre diet. 

 

High fibre diet


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  Reply # 1723187 20-Feb-2017 18:32
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There doesn't seem to be any loans on the marketplace right now...





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Ultimate Geek
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  Reply # 1723199 20-Feb-2017 19:00
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sonyxperiageek:

 

There doesn't seem to be any loans on the marketplace right now...

 



Loans get funded quicker these days due to the auto-lend feature. 


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Uber Geek
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  Reply # 1723211 20-Feb-2017 19:11
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Sam91:

 

sonyxperiageek:

 

There doesn't seem to be any loans on the marketplace right now...

 



Loans get funded quicker these days due to the auto-lend feature. 

 

 

Sounds like they've taken the fun out of it.





rm *


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  Reply # 1723244 20-Feb-2017 19:38
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Hmm that means I'll probably have to join in the Auto Lend feature then...






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  Reply # 1723468 21-Feb-2017 09:06
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sonyxperiageek:

 

There doesn't seem to be any loans on the marketplace right now...

 

 

They appear through the day. You have to check. 

I did have a look at autolend. I set up a filter that only lends a max of $100 to A or B or C loans that match certain criteria. Anything else I would have to do manually. To lend manually, you can try checking through the day. By evening most loans worth lending to have been subscribed. That was sort of what my latest update was about. The supply of loans each day seems to be smaller than the pool of funds to lend.....and that me makes it hard to keep your funds invested. :-)  





____________________________________________________
I'm on a high fibre diet. 

 

High fibre diet


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Ultimate Geek
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  Reply # 1740528 16-Mar-2017 21:39
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One of my loans (E5) that has been in arrears for ages has finally been charged off. It's a bit frustrating though, as they made a payment just 6 days ago. This suggests they may have made future payments, but now that it's charged off, I doubt anything will be recovered.

I know charge offs happen all the time, it just has a greater impact on me because of the size of my investment (1k).  : )


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  Reply # 1740530 16-Mar-2017 21:40
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Sam91:

 

One of my loans (E5) that has been in arrears for ages has finally been charged off. It's a bit frustrating though, as they made a payment just 6 days ago. This suggests they may have made future payments, but now that it's charged off, I doubt anything will be recovered.

I know charge offs happen all the time, it just has a greater impact on me because of the size of my investment (1k).  : )

 

 

You put 1k (equivalent to 40 notes) on an E5 loan??





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Ultimate Geek
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  Reply # 1740531 16-Mar-2017 21:46
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sonyxperiageek:

 

Sam91:

 

One of my loans (E5) that has been in arrears for ages has finally been charged off. It's a bit frustrating though, as they made a payment just 6 days ago. This suggests they may have made future payments, but now that it's charged off, I doubt anything will be recovered.

I know charge offs happen all the time, it just has a greater impact on me because of the size of my investment (1k).  : )

 

 

You put 1k (equivalent to 40 notes) on an E5 loan??

 



Haha no way! My overall investment in Harmoney is $1000. My investment in the E5 loan was only one note ($25). $25 charged off hurts me much more than an investor with much more invested (50k etc.), that's what I meant.

Should've been clearer, I can see how it reads that way now : P


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Uber Geek
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  Reply # 1740533 16-Mar-2017 21:51
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Sam91:

 

sonyxperiageek:

 

Sam91:

 

One of my loans (E5) that has been in arrears for ages has finally been charged off. It's a bit frustrating though, as they made a payment just 6 days ago. This suggests they may have made future payments, but now that it's charged off, I doubt anything will be recovered.

I know charge offs happen all the time, it just has a greater impact on me because of the size of my investment (1k).  : )

 

 

You put 1k (equivalent to 40 notes) on an E5 loan??

 



Haha no way! My overall investment in Harmoney is $1000. My investment in the E5 loan was only one note ($25). $25 charged off hurts me much more than an investor with much more invested (50k etc.), that's what I meant.

Should've been clearer, I can see how it reads that way now : P

 

 

Oh right lol, was a bit worried for a second there! :P

 

I've got $500 invested in Harmoney at the moment. How much interest have you gained over how many years you've invested with them so far? Or should I say what's your RAR?





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Ultimate Geek
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  Reply # 1740540 16-Mar-2017 22:05
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sonyxperiageek:

 

Sam91:

 

sonyxperiageek:

 

Sam91:

 

One of my loans (E5) that has been in arrears for ages has finally been charged off. It's a bit frustrating though, as they made a payment just 6 days ago. This suggests they may have made future payments, but now that it's charged off, I doubt anything will be recovered.

I know charge offs happen all the time, it just has a greater impact on me because of the size of my investment (1k).  : )

 

 

You put 1k (equivalent to 40 notes) on an E5 loan??

 



Haha no way! My overall investment in Harmoney is $1000. My investment in the E5 loan was only one note ($25). $25 charged off hurts me much more than an investor with much more invested (50k etc.), that's what I meant.

Should've been clearer, I can see how it reads that way now : P

 

 

Oh right lol, was a bit worried for a second there! :P

 

I've got $500 invested in Harmoney at the moment. How much interest have you gained over how many years you've invested with them so far? Or should I say what's your RAR?

 



Harmoney is down at the moment so I can't give you exact numbers. I've been investing for around 8 months, currently $100 approx interest earned. I've got a little over 1k invested and have been reinvesting everything earned. Before any of my charge offs my RAR was just under 12%, then after the first charge off it dropped to just under 8%, now with this latest charge off my RAR will be pretty terrible. From memory I only took 2 F grade loans and 2 E grade loans. I only invest one note per loan. So far one F has been charged off, one E has been charged off, and one E has been paid off. I think I still have an F loan active. None of my other loans have given me any grief thus far. Based on my experience, I won't be investing in E and F grade loans again, unless I significantly stepped up my overall investment in Harmoney.

Do you have any E or F notes? Do you have any loans in arrears?


221 posts

Master Geek
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  Reply # 1740622 17-Mar-2017 08:44
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I tried for a loan on Harmoney, my credit score (on credit simple) is 789 and no judgements against my name when checking with all 3 agencies.  However, the quoted interest rate was around 33% - I could draw the money out on a credit card as a cash advance much cheaper than that.  Also my credit history shows I applied for the loan even though I never took it up.  Z---- would not use again.

 

 


8 posts

Wannabe Geek


  Reply # 1746836 24-Mar-2017 09:06
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I decided to put in $ 500 on Harmoney after browsing the site and read all the experiences in this thread so far. So far have invested 4 x $ 25 in grade B and C loans.

My one question is, if I put $ 25 on a 36 months loan, provided it's not rewritten, will I get repaid the principal of $ 25/36 every month (plus interest less fees and tax) ?


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