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Follow Me As I Learn to P2P
Like you I am in the position to put a small sum of money aside for that rainy day to spend on my family. There is no more room under our bed, as that space was filled up many years ago with paraphernalia.
We bought a house with a mortgage. But the number of remaining payments is small enough to warrant drinking coffee in the evening. Or something similarly crazy!
We have put money into the usual high-street savings account and made the most of tax-free ISAs. We contributed generously into our company pension plan as well as bought some shares and played around on the stock market!
I now have another £500 to invest into something where I can earn interest. One of the previous three options? Or am I ready to try something different? Peer-to-peer lending?
What is it? It sounds like the black forest gateau flavoured frozen yoghurt ice cream of the savings world? It’s a way to save. But it’s investing. But it’s lending to people. But it’s lending to companies. Regardless it is an aggregate of all types of saving and yet it is its own distinctive type of saving.
Until recently we have had three traditional ways of putting money aside (the bed does not count) and earning some form of interest; well, assuming the respective market is healthy and buoyant.
First, we have banks for the most risk-averse people. Second, there is property for those thinking long term and with deeper pockets. Third, we have stocks and shares for those of us who range from investing safely and securely in company pension plans to those of us who like to risk buying individual shares on the stock market.
Now a fourth way exists for us to save money – through lending our money and allowing others to borrow this money in return for interest on the money lent. A P2P lending company is the establishment in this endeavour who will manage our money by lending it to an individual or business in need of it. The bank; the broker; the investment company of the 4thWay.
My interest in this sector appealed to me enough to warrant creating this site, along with a few people more financially savvy than me, for the purpose of finding the best P2P lending company and best product in their portfolio.
I don’t expect you all to create a website too! But as a co-founder of this website and someone who has a personal interest in finding the best P2P lending company and best product, I will share my findings with you.
Over the course of the next few articles I will share my thoughts and decisions with you, as I take the necessary steps to learn more about P2P lending and the available products.
I will share my thoughts over dessert and tell you of the steps I take in deciding which lender and lending product to choose from. Ice cream anyone?