Wassuppppp?????
I know - I ain't been around these parts in a long spell. Apologies for my absence; as most of you know, this working like a dog to support the credit card companies can take up a whole heckuvalot of your time, and after busting your ass for "THE MAN" for however many hours a day (and since I'm self employed, I guess that makes me "THE MAN" which would account for my bouts of self loathing - I can't help it - I just think my boss is a big weenie, y'know?), sometimes you just don't feel up to blogging. Sometimes the idea of trying to formulate coherent thought is simply too daunting. Sometimes you just wanna watch "Chuck" instead.
But I'm here now, so let's just move on from this point with some Updates!!
Update #1: I Grow, I Prosper
I got this e-mail from Prosper.com last week -
Prosper Filing Registration Statement; Enters Quiet Period
Prosper has started a process to register, with the appropriate securities authorities, promissory notes that may be offered and sold to lenders through our site in the future. Until we complete the registration process, we will not accept new lender registrations or allow new commitments from existing lenders. If you're an existing lender, your current lender agreements will be unaffected; your existing loans will continue to be serviced; you'll be able to track and monitor your loans; and you'll be able to withdraw funds from your Prosper account. If you're a borrower with an existing loan, you will continue with your current borrower agreement and be unaffected by the registration process. If you're a borrower seeking a loan, you will still be able to create a new loan listing, which we will endeavor to fulfill through alternative sources. As the appropriate securities authorities may consider a new loan listing to constitute the offer of a security, we are unable to post new loan listings on our site until our registration statement becomes effective. A successful registration can take several months, but we assure you we will do our best to move forward as quickly as possible. Until this process is complete, we're required to be in a quiet period and will be unable to respond to press, blogger or other inquiries about Prosper or the registration filing until it becomes effective. We apologize for any inconvenience this may cause, and want to thank you in advance for your understanding and support.
They also asked affiliates to temporarily remove any advertisements regarding Prosper from their blogs, so you won't see that ad on this site for a while. Here's hoping they get all their business wrapped up soon - Prosper's been very good to me, and I definitely want to do more investing with them.
Update #2: The Citi Never Sleeps (yeah, and neither do brain sucking zombies)
So, the other day I get a notice in the mail from Citibank (or CitiCorp or CitiGroup or whatever their frigging CitiCalling their CitiSelves this CitiDay). Anyway, the notice says that soon, they will be raising their interest rate on purchases from wherever yours might happen to be now (ours is at 6.5%) to 24.99%. Why? Just 'cause. But wait! There's another option! If you don't want your interest rate to quadruple!, you can "opt out". I wondered what opting out would entail, and called the CitiNumber to get some CitiAnswers. The CitiChick that I spoke with explained that, if you opt out, your interest rate will not increase; it will stay where it is. However, when your card expires, the account will be automatically closed. Being the suspicious DebtDaddy that I am, I said, "Ah, and then when the account closes, the balance is due in full, right? Right?" Wrong. After the card expires, you continue to make monthly payments as you normally would until the account is paid in full. So, in a nutshell; if you opt out, your interest rate doesn't go up, your account is closed which, if you're a Dave Ramseyite, you know is a good thing, and there's no other penalty. Of course, there are two caveats - the first is that most people's interest rates are variable rates that fluctuate with prime, so the rate could change - but last I checked, prime ain't going no where but down. The second thing is that your FICO score might get a little screwy at some point, since if the account is closed and you still owe money on it, then the amount of credit card debt you have might outweigh the amount of credit you have available to you, which doesn't get you high marks with FICO. But again, search Dave Ramsey's site for references to FICO, and you'll find that he doesn't really care much about that. He himself has a terrible FICO score, because that score is based on credit usage, which is a habit that the good Mr. Ramsey has kicked.
So, if you've got a CitiCard, you might want to call your own CitiChick or CitiDude and opt out yourself. Tell 'em Debt Daddy sent you. ;)
Update # 3: DebtDaddy Version 44.0
I'm old....er. Yes, reader - Debt Daddy turned 44 yesterday. The good news is I don't look a day over 50. The bad news is that I didn't get nearly enough people wishing me a happy birthday, so how about posting me some well wishes in the comments section? Or you could just send money - money works too. ;)
Thanks.
Showing posts with label Prosper. Show all posts
Showing posts with label Prosper. Show all posts
Friday, December 5, 2008
Saturday, October 20, 2007
Robin Hood Was Right
First off, I want to thank all of you that have clicked through and joined Prosper, especially those of you who went so far as to fund a loan - felt pretty good getting that instant $25, didn't it? :)
Remember, once you're a member, if you get others to join through the referral program, you'll get another $25 for each one of them that joins and funds a loan, or joins for the purposes of borrowing. And, as if I need to remind you, every dollar that is loaned from one person to another is one more dollar that THE BANKS don't get any part of (I just felt a tingle in my nether regions). Remember that banker that gave you a really hard time and just wouldn't listen to reason? Well, using Prosper is the financial equivalent of replacing his toilet paper with 80 grit sandpaper. Yeah....Ouch. ;)
That to me is the true win/win scenario. It's always great if I can save some money, or make some money - but add to that the thought that I might be able to sucker punch a financial institution in the process - well hell, that just makes Debt Daddy giddy as a schoolgirl (avert your eyes from the visual that may have stirred up).
I guess that's why Robin Hood has always been one of my heroes. He saw a wrong and he righted it. He saw inequity and did something about it, usually with a broad smile on his face. Because he knew - taking ill-gotten gain from one whom neither deserves nor requires it, and returning said money to those from whom it was originally taken, is not theft - it is justice.
It's not about stealing, it's about turning the tide. Nature knows all about this - there's a part of North Carolina called the Outer Banks. It's a truly beautiful stretch of barrier islands, best known for Kitty Hawk, where the Wright Brothers had their maiden flight. More important than its historical significance however, is the inlet system of the islands themselves. Every year, the tide carries sand from the ocean side of the islands through the inlets and deposits it on the sound side. In time, the currents take that sand back from the sound side and replace it on the ocean side, so the islands are ever shifting, but always there.
Then progress came along and mucked everything up. A large bridge was built many years ago across one of the major inlets, stifling the ability of nature to do its job. Does that mean that the sand stops moving? No. Now, instead of moving the sand to the sound side, a good portion of it simply gets washed out to sea, causing beach erosion and, in worst case scenarios, causing beach homes to be condemned because there's simply not enough land left to safely support their homes.
This is what's happening with money as well. When interest rates on credit card debt are allowed to skyrocket, it erodes your funds. When wealthy CEO's hoard millions, often billions of dollars in offshore accounts, the money doesn't flow and the system doesn't function as it should. When the government denies worthwhile programs that would help the poor and middle class while at the same time rewarding the wealthy, they have blocked the cash flow yet again. And when all of these financial factors are combined, eventually there is not enough left to support you and your financial life is condemned - condemned to a seemingly endless race to get back what you lost, to claw your way out of debt - to do whatever it takes to somehow turn the tide and regain that which the sea has taken from you.
That's what Robin Hood was about - restoring the balance. The king was overtaxing those who could not afford to be taxed so heavily, and Robin Hood took it back, returning the cash to those that needed it most. Was he a thief? Depends on how you look at it - as far as the British were concerned, George Washington was a terrorist. The FBI had this to say about Martin Luther King, directly following his "I have a dream" speech; "We must mark him now . . . as the most dangerous Negro of the future in this Nation from the standpoint of Communism, the Negro and national security." It's all about perspective.
From my perspective, we need more Robin Hoods. And each of us, in our own way, can become Robin Hoods. PLEASE NOTE: DEBT DADDY IS NOT ASKING YOU TO STEAL FROM ANYONE AS DEFINED BY THE LAWS OF THE LAND. DEBT DADDY DOES NOT CONDONE, NOR IN ANY WAY ENCOURAGE FELONY BEHAVIOR! We clear? (That said, if you wanted to cover Rush Limbaugh's front lawn in pink paint, forcing him to pay a struggling landscaper to put down new sod, well then - that's your call. I'm pretty sure that's only a misdemeanor, but check with your local authority.)
What I am suggesting is that we play their game. After all, the banks and the government don't break into your house and steal your prized possessions, do they? No; instead they legally jack up your interest rates and your taxes so that you are forced to sell those prized possessions on Ebay to pay the bills. We need some perfectly legal Robin Hooding ideas, and here are a few:
First of all, take a full weekend and study your income tax code and guidelines. Are you absolutely making the most of your deductions? Time to think outside that cursed box - is there a hobby that you engage in that might, with a little tweaking, become a business? If so, the money you spend on that hobby is tax deductible. When you tithe to your church or other place of worship, do you do so by check? You should - that check is a receipt for your charitable contribution - again, tax deductible. Could your own home possibly be considered a place of worship? I know of Orthodox Jews in my area that are using that strategy. Take a fine tooth comb to the tax books, and see what you might be able to use for your situation.
Speaking of taxes, have you appealed your property taxes? I had thought about this, but was afraid it might backfire and my taxes might go up. Turns out, if you appeal, they can only lower your tax or it remains the same - they cannot raise it (this is in my area - again, check your local authority for rules and regs).
Have you looked at Prosper.com? Many of the borrowers on Prosper are there for the purposes of debt reduction. A loan from Prosper is a fixed rate term loan, quite often at better interest rates than you're getting from Visa and the like. A whole lot of people are benefiting from Prosper, so much so that it was named as one of TIME magazines top 50 websites. Again, if you're interested or curious, click the blue link on the left of this page.
These are just a few thoughts - I hope that you will post your own ideas in the comments section. I'm open to any idea, however "out there" it might seem. Because we've gotta turn this tide, folks. We've gotta get back some of what they've taken from us. And we've gotta do it Now.
Rock on, Robin Hoods.
Remember, once you're a member, if you get others to join through the referral program, you'll get another $25 for each one of them that joins and funds a loan, or joins for the purposes of borrowing. And, as if I need to remind you, every dollar that is loaned from one person to another is one more dollar that THE BANKS don't get any part of (I just felt a tingle in my nether regions). Remember that banker that gave you a really hard time and just wouldn't listen to reason? Well, using Prosper is the financial equivalent of replacing his toilet paper with 80 grit sandpaper. Yeah....Ouch. ;)
That to me is the true win/win scenario. It's always great if I can save some money, or make some money - but add to that the thought that I might be able to sucker punch a financial institution in the process - well hell, that just makes Debt Daddy giddy as a schoolgirl (avert your eyes from the visual that may have stirred up).
I guess that's why Robin Hood has always been one of my heroes. He saw a wrong and he righted it. He saw inequity and did something about it, usually with a broad smile on his face. Because he knew - taking ill-gotten gain from one whom neither deserves nor requires it, and returning said money to those from whom it was originally taken, is not theft - it is justice.
It's not about stealing, it's about turning the tide. Nature knows all about this - there's a part of North Carolina called the Outer Banks. It's a truly beautiful stretch of barrier islands, best known for Kitty Hawk, where the Wright Brothers had their maiden flight. More important than its historical significance however, is the inlet system of the islands themselves. Every year, the tide carries sand from the ocean side of the islands through the inlets and deposits it on the sound side. In time, the currents take that sand back from the sound side and replace it on the ocean side, so the islands are ever shifting, but always there.
Then progress came along and mucked everything up. A large bridge was built many years ago across one of the major inlets, stifling the ability of nature to do its job. Does that mean that the sand stops moving? No. Now, instead of moving the sand to the sound side, a good portion of it simply gets washed out to sea, causing beach erosion and, in worst case scenarios, causing beach homes to be condemned because there's simply not enough land left to safely support their homes.
This is what's happening with money as well. When interest rates on credit card debt are allowed to skyrocket, it erodes your funds. When wealthy CEO's hoard millions, often billions of dollars in offshore accounts, the money doesn't flow and the system doesn't function as it should. When the government denies worthwhile programs that would help the poor and middle class while at the same time rewarding the wealthy, they have blocked the cash flow yet again. And when all of these financial factors are combined, eventually there is not enough left to support you and your financial life is condemned - condemned to a seemingly endless race to get back what you lost, to claw your way out of debt - to do whatever it takes to somehow turn the tide and regain that which the sea has taken from you.
That's what Robin Hood was about - restoring the balance. The king was overtaxing those who could not afford to be taxed so heavily, and Robin Hood took it back, returning the cash to those that needed it most. Was he a thief? Depends on how you look at it - as far as the British were concerned, George Washington was a terrorist. The FBI had this to say about Martin Luther King, directly following his "I have a dream" speech; "We must mark him now . . . as the most dangerous Negro of the future in this Nation from the standpoint of Communism, the Negro and national security." It's all about perspective.
From my perspective, we need more Robin Hoods. And each of us, in our own way, can become Robin Hoods. PLEASE NOTE: DEBT DADDY IS NOT ASKING YOU TO STEAL FROM ANYONE AS DEFINED BY THE LAWS OF THE LAND. DEBT DADDY DOES NOT CONDONE, NOR IN ANY WAY ENCOURAGE FELONY BEHAVIOR! We clear? (That said, if you wanted to cover Rush Limbaugh's front lawn in pink paint, forcing him to pay a struggling landscaper to put down new sod, well then - that's your call. I'm pretty sure that's only a misdemeanor, but check with your local authority.)
What I am suggesting is that we play their game. After all, the banks and the government don't break into your house and steal your prized possessions, do they? No; instead they legally jack up your interest rates and your taxes so that you are forced to sell those prized possessions on Ebay to pay the bills. We need some perfectly legal Robin Hooding ideas, and here are a few:
First of all, take a full weekend and study your income tax code and guidelines. Are you absolutely making the most of your deductions? Time to think outside that cursed box - is there a hobby that you engage in that might, with a little tweaking, become a business? If so, the money you spend on that hobby is tax deductible. When you tithe to your church or other place of worship, do you do so by check? You should - that check is a receipt for your charitable contribution - again, tax deductible. Could your own home possibly be considered a place of worship? I know of Orthodox Jews in my area that are using that strategy. Take a fine tooth comb to the tax books, and see what you might be able to use for your situation.
Speaking of taxes, have you appealed your property taxes? I had thought about this, but was afraid it might backfire and my taxes might go up. Turns out, if you appeal, they can only lower your tax or it remains the same - they cannot raise it (this is in my area - again, check your local authority for rules and regs).
Have you looked at Prosper.com? Many of the borrowers on Prosper are there for the purposes of debt reduction. A loan from Prosper is a fixed rate term loan, quite often at better interest rates than you're getting from Visa and the like. A whole lot of people are benefiting from Prosper, so much so that it was named as one of TIME magazines top 50 websites. Again, if you're interested or curious, click the blue link on the left of this page.
These are just a few thoughts - I hope that you will post your own ideas in the comments section. I'm open to any idea, however "out there" it might seem. Because we've gotta turn this tide, folks. We've gotta get back some of what they've taken from us. And we've gotta do it Now.
Rock on, Robin Hoods.
Friday, September 28, 2007
Debt Daddy's take on Prosper
I just got off the phone with my bank. Now, I know you can't see me, but take a guess - am I smiling?
The smart money would bet on "no". It used to be that you could call your local financial institution with a problem or issue and they would do what they could to help you. If they couldn't help you, they might offer some advice on alternative options. In any case, they appreciated you as a customer and placed some value on their relationship with you.
Yeah...and you used to get a free toaster when you opened an account too.
Those days are over. The banks have decided that they have absolutely no reason to help us, so they don't. There's just no profit in it. It seems like, at every turn, financial institutions are trying to make it harder and harder for the average person to get by. You can only get a loan if you don't need the money. The check you deposit takes a week to show up in your account, while the checks you write are withdrawn from your accont almost as soon as you're done writing them. Fees abound, interest rates bounce, and if you read the fine print, you'll find that most banks tell you right up front that they can and will change the rules whenever they feel like it.
Kinda feels like playing poker with The Sopranos, if you ask me. And I've gotta ask myself, "Why am I still sitting at this table? Surely there's gotta be a better game in town?"
Turns out, there is. If you're looking to borrow money, or if you're in a position to loan money and make a very decent return, read on.
Not too long ago, I came across Prosper.com. Prosper is a company that makes it possible for people like you and me to lend money to people like you and me. No Banks. No Credit Institutions. No Sub Prime Mortgage Companies. Just People. Lending to and borrowing from other people. Some of these folks come here because, for whatever reason, their credit scores and ratings are not quite up to snuff, and the banks won't talk to them. Others come here because, although they have excellent credit ratings, they'd rather not go to a conventional bank for their loan. Either way, Prosper has put together quite an operation. They are thorough, organized - and it seems like it's really working.
I have to admit, I was impressed with the vetting process that Prosper makes applicants go through. In that regard, they are very much like a bank - credit checks are run, debt to income ratios are reported, their credit ratings and any other pertinent information are published so that potential lenders know exactly who they're lending to and what the potential risk might be. But unlike a bank, Prosper doesn't automatically say no if you don't fit into the perfect box of what a "good borrower" should be.
Is there risk? Sure. I'm currently funding a portion of a loan to a woman with an F credit rating. Is there a chance she might default on the loan? Absolutely. Is there a chance that the stock market might hiccup and my 401k account would suddenly devalue itself by 20%? Absolutely. Every investment has risk. The good news is that I've only loaned her $50 of the $4,000 loan she was approved for. Other Prosper members loaned that same amount or better til the loan was fully funded. The loan is being repaid over three years at an interest rate of 22%. Now, this woman has a chance to turn her financial life around. She wasn't about to get that chance with a typical bank. No way in Hell.
That's the appeal for me, I guess. You get to help people that really need help, and you get to stick it to the banks at the same time. They don't get the interest - you do. The banks get nothing but a cold shoulder and a door slammed in their face for a change - and that thought makes me giddy every time I think about it.
If you have even the slightest interest or curiousity, click my link on the left hand side of this page. And how's this for instant reward - if you click through my link, join Prosper and fund a loan, you and I both get $25.00. So, for lending someone $50, you automatically get a 50% return on investment.
Helping others.
Screwing the banks.
Instant return.
Money well spent.
The smart money would bet on "no". It used to be that you could call your local financial institution with a problem or issue and they would do what they could to help you. If they couldn't help you, they might offer some advice on alternative options. In any case, they appreciated you as a customer and placed some value on their relationship with you.
Yeah...and you used to get a free toaster when you opened an account too.
Those days are over. The banks have decided that they have absolutely no reason to help us, so they don't. There's just no profit in it. It seems like, at every turn, financial institutions are trying to make it harder and harder for the average person to get by. You can only get a loan if you don't need the money. The check you deposit takes a week to show up in your account, while the checks you write are withdrawn from your accont almost as soon as you're done writing them. Fees abound, interest rates bounce, and if you read the fine print, you'll find that most banks tell you right up front that they can and will change the rules whenever they feel like it.
Kinda feels like playing poker with The Sopranos, if you ask me. And I've gotta ask myself, "Why am I still sitting at this table? Surely there's gotta be a better game in town?"
Turns out, there is. If you're looking to borrow money, or if you're in a position to loan money and make a very decent return, read on.
Not too long ago, I came across Prosper.com. Prosper is a company that makes it possible for people like you and me to lend money to people like you and me. No Banks. No Credit Institutions. No Sub Prime Mortgage Companies. Just People. Lending to and borrowing from other people. Some of these folks come here because, for whatever reason, their credit scores and ratings are not quite up to snuff, and the banks won't talk to them. Others come here because, although they have excellent credit ratings, they'd rather not go to a conventional bank for their loan. Either way, Prosper has put together quite an operation. They are thorough, organized - and it seems like it's really working.
I have to admit, I was impressed with the vetting process that Prosper makes applicants go through. In that regard, they are very much like a bank - credit checks are run, debt to income ratios are reported, their credit ratings and any other pertinent information are published so that potential lenders know exactly who they're lending to and what the potential risk might be. But unlike a bank, Prosper doesn't automatically say no if you don't fit into the perfect box of what a "good borrower" should be.
Is there risk? Sure. I'm currently funding a portion of a loan to a woman with an F credit rating. Is there a chance she might default on the loan? Absolutely. Is there a chance that the stock market might hiccup and my 401k account would suddenly devalue itself by 20%? Absolutely. Every investment has risk. The good news is that I've only loaned her $50 of the $4,000 loan she was approved for. Other Prosper members loaned that same amount or better til the loan was fully funded. The loan is being repaid over three years at an interest rate of 22%. Now, this woman has a chance to turn her financial life around. She wasn't about to get that chance with a typical bank. No way in Hell.
That's the appeal for me, I guess. You get to help people that really need help, and you get to stick it to the banks at the same time. They don't get the interest - you do. The banks get nothing but a cold shoulder and a door slammed in their face for a change - and that thought makes me giddy every time I think about it.
If you have even the slightest interest or curiousity, click my link on the left hand side of this page. And how's this for instant reward - if you click through my link, join Prosper and fund a loan, you and I both get $25.00. So, for lending someone $50, you automatically get a 50% return on investment.
Helping others.
Screwing the banks.
Instant return.
Money well spent.
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