Greenwood2
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Post by Greenwood2 on Feb 13, 2020 15:47:25 GMT
I have been in Zopa since June 2018 and have now sold out, but guess what, all the bad debts I ever had only materialised when I started selling! What an incredible coincidence! Nothing needed providing for as we went along, everything looked fine and dandy, but once I hit the sell button..... I put 12k in in june 2018 and am getting out with....12k. most interest has gone in bad debt, I have £40 interest remaining after bad debts, but still £1,500 of loans unsold...... waste of time and effort. All the written off loans will have been deducted from your account as they happen, the monthly statements show (interest - bad debt + recoveries from bad debt) that has been added to your account. Assuming you have now withdrawn all the good loans (trying several times to pick up ones that were due payments when you requested the sale), the remainder are not saleable but may pay back or partially pay back over time. You will also continue to get recoveries from previous bad debt that had been deducted from your account.
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benaj
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Post by benaj on Feb 13, 2020 16:16:13 GMT
I have been in Zopa since June 2018 and have now sold out, but guess what, all the bad debts I ever had only materialised when I started selling! What an incredible coincidence! Nothing needed providing for as we went along, everything looked fine and dandy, but once I hit the sell button..... I put 12k in in june 2018 and am getting out with....12k. most interest has gone in bad debt, I have £40 interest remaining after bad debts, but still £1,500 of loans unsold...... waste of time and effort. The 12% stuck will be your realised profit later on thru recovery / repayment/arrangement/ debt sales.. If it follows the same pattern, you will be ending up profit higher than some poor FSCS saving account. At least you have full control of your accessed cash. 😃
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Post by Deleted on Mar 7, 2020 17:44:42 GMT
After a brilliant long term track record Zopa returns have fallen through the floor, it all seemed to go wrong [for me] about a year ago.
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Post by stevexxx on Mar 7, 2020 17:45:03 GMT
This is why its not good to sell out early, its not like a bank account, interest from the good loans will over the coarse of time pay for the bad debt, that's how it works, selling out early doesn't allow that to happen but there will be some recovery from the bad loans over time...
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Post by Deleted on Mar 7, 2020 19:32:42 GMT
This is why its not good to sell out early, its not like a bank account, interest from the good loans will over the coarse of time pay for the bad debt, that's how it works, selling out early doesn't allow that to happen but there will be some recovery from the bad loans over time... Of course. Any sophisticated investor will understand that...to some degree. However, waiting for over a year for better returns is folly. You will never catch up. We all expect troughs and highs, that is what P2P is all about but a much longer span of poor returns must eventually flag up the exit. FC is a classic example and why those who escaped early were pleased they did.
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aju
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Post by aju on Mar 8, 2020 12:04:22 GMT
This is why its not good to sell out early, its not like a bank account, interest from the good loans will over the coarse of time pay for the bad debt, that's how it works, selling out early doesn't allow that to happen but there will be some recovery from the bad loans over time... Of course. Any sophisticated investor will understand that...to some degree. However, waiting for over a year for better returns is folly. You will never catch up. We all expect troughs and highs, that is what P2P is all about but a much longer span of poor returns must eventually flag up the exit. FC is a classic example and why those who escaped early were pleased they did. Yeah it's a balancing act that I'm not sure we are winning anymore having sold out quite a bit earlier in the year to move to another platform and reduce our Tax payments we are still waiting for the returns relative to defaults hit to pick up. Don't get me wrong we are still very much in the positive zone by a long way after years of good profits - although it's hard to see this when month on month the rates seem to reduce and the defaults seem not to stabilise. (Perhaps my £10/loan strategy is not the best after all ). That said we are still raking in the profits in our overall Zopa investment. Way better than our safety hole of best rate Marcus (well at least until August 31st at least). The potential of a recession we seem to heading towards as a result of the virus might change things though. At least I won't be stuck in an Icelandic bank this time, just risky P2P, at least I am aware of the risks I know about this time  .
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zlb
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Post by zlb on Mar 8, 2020 17:55:23 GMT
I can't be bothered to work it out anymore. I noticed that having reinvest off, that my holding account wasn't filling up as quickly as it used to, because I was watching the value to transfer to cash for now.
I decided to sell, which cost me about the equivalent of between 3 and 5 months interest depending on which ones are counted - or the same value last year might have been approx 2.2 months interest. All months have defaults now.
If I had a choice to remove all investment here, would I? I'm not sure but I've reduced it down to SG money (v little there) and an 'experiment' which I will reduce as it repays, to an even smaller amount more suited to be used as an 'experiment'.
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Post by marcusponds on Mar 10, 2020 17:34:13 GMT
i'm a simple chap. I work out monthly interest simply based on what I received in interest /what I have invested. I'm in Core and Classic, ratio of 3:1. In the year to March 19 I got a blended rate of 4.71%, year to March 20 I've had 4.1%, with some months under 3%.
So, no new money is going into Zopa, but I will remain for diversification. Current favourite is ABL @ 12% + over the last 18 months.
I'm not clever, I was "overweight" in MT!!
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