Hi All,

I just wanted to give our readers a quick update on our prosper account. We haven’t been blogging much about prosper, mostly because everything has been going fine.

Where our accounts currently stand: As of Wednesday night we have currently loaned out $3,403.03 at an average interest rate of 21.72%. We currently have 31 active loans, 2 are weeks late, 1 is over a month late. This means that about 10% of our portfolio is not current.

While I’m not excited about the late loans, my wife and I made a conscious decision a while back to lend at a higher interest rate than some others might be comfortable with. This implied taking on more than the average amount of risk with our portfolio. All in all, given how relatively new online person to person lending is, I’m pleased that only 10 percent of our loans are late.

I am still somewhat concerned that prosper might go out of business. My wife and I did calculate how much we thought it would take for prosper to be solvent. This number was around $30 million. Right now prosper has made around $27 million worth of loans. While $27 million is close to $30, we’ll see in the next few months whether the business model will be ultimately successful.

Best,

James

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