Harmoney

[whitt]

I'm new to this thread. I have read the last 30 or so pages and not seen this covered, but perhaps it was earlier.

What length of loan do you tend to target, 36 month or 60 month, and why? Or don't you care.

Apologies if covered earlier, if so just point me to the comment(s)

Cheers

Length doesn't matter to me I would prefer spend my time cherry picking thru the loans borrower info.

[RMJH]

I'm new to this thread. I have read the last 30 or so pages and not seen this covered, but perhaps it was earlier.

What length of loan do you tend to target, 36 month or 60month, and why? Or don't you care.

Apologies if covered earlier, if so just point me to the comment(s)

Cheers

Not too bothered but as loans typically go bad in the first year there might be some small advantage in a portfolio of longer duration though a significant proportion of loans are rewritten. Diversification is the key.

[Cool Bear]

hammered by bad loans today - 5 loans written off today so far. Will be interesting to see what that does to my RAR which will be published soon, I presume. Hopefully the new calculation takes these write offs into account.

[andrewfreestuff]

Not too bothered but as loans typically go bad in the first year there might be some small advantage in a portfolio of longer duration though a significant proportion of loans are rewritten. Diversification is the key.

I had, perhaps wrongly, the opposite view. I assumed that if the average time to failure was 1 year then you would be best to have short duration loans as you would have received 1/3rd of the repayments before it went bad, vs only 1/6th Is my reasoning incorrect? With that in mind I have only invested in 36 month loans.

As everyone is publishing their performance I thought I would share mine. I have only invested in A or B grade loans, always 36 months. Never for anyone over 50, never for business loans or cars or loans to family. Never invested in a rewrite - my philosophy being that if they are the type of person who keeps digging themselves into debt then they aren't truly trying to improve their debt position. To date I haven't had a single write off (touch wood). But I have WAAAY less invested than many others here.

[Saamee]

I had, perhaps wrongly, the opposite view. I assumed that if the average time to failure was 1 year then you would be best to have short duration loans as you would have received 1/3rd of the repayments before it went bad, vs only 1/6th Is my reasoning incorrect? With that in mind I have only invested in 36 month loans.

As everyone is publishing their performance I thought I would share mine. I have only invested in A or B grade loans, always 36 months. Never for anyone over 50, never for business loans or cars or loans to family. Never invested in a rewrite - my philosophy being that if they are the type of person who keeps digging themselves into debt then they aren't truly trying to improve their debt position. To date I haven't had a single write off (touch wood). But I have WAAAY less invested than many others here.

Just out of interest.... I think you will find a 5 Year loan is 1/5th ( 20% )!

[Saamee]

Does anyone else get this following little quirk sometimes when Withdrawing funds from your HM account?

After completing a Withdrawl and taking out ALL availble shown funds.... ( leaving zero funds behind )

Afterwards, you are then shown even more funds still in your account available to still be withdrawn?

This can go on for 2 to 4 Withdrawls before you do finally get to getting to a Zero funds balance ....

I've not said anythng here, before but it still happen 3 or 4 times a week!

[RMJH]

I had, perhaps wrongly, the opposite view. I assumed that if the average time to failure was 1 year then you would be best to have short duration loans as you would have received 1/3rd of the repayments before it went bad, vs only 1/6th Is my reasoning incorrect? With that in mind I have only invested in 36 month loans.

As everyone is publishing their performance I thought I would share mine. I have only invested in A or B grade loans, always 36 months. Never for anyone over 50, never for business loans or cars or loans to family. Never invested in a rewrite - my philosophy being that if they are the type of person who keeps digging themselves into debt then they aren't truly trying to improve their debt position. To date I haven't had a single write off (touch wood). But I have WAAAY less invested than many others here.

The way I see it: Assuming loss is after 1 year and assuming you re-invested in another 3 year loan your chances of getting a write-off increase (you pass the 1 year mark more often over time). Crudely, 67% x (5/3) > 80%. But I think you can be too picky given the scarcity of loans as the risk of lack of diversification is the biggest issue. If you have not had any charge-offs it may be because you lack sufficient diversification....

[andrewfreestuff]

The way I see it: Assuming loss is after 1 year and assuming you re-invested in another 3 year loan your chances of getting a write-off increase (you pass the 1 year mark more often over time).

That's a good point, I hadn't thought of that. I'm no maths whizz!

But I think you can be too picky given the scarcity of loans as the risk of lack of diversification is the biggest issue. If you have not had any charge-offs it may be because you lack sufficient diversification....

Could you explain that further? I only put a single $25 ticket into any loan so I have as good a diversification as I could get I guess ? Thanks

[Darchie]

Does anyone else get this following little quirk sometimes when Withdrawing funds from your HM account?

After completing a Withdrawl and taking out ALL availble shown funds.... ( leaving zero funds behind )

Afterwards, you are then shown even more funds still in your account available to still be withdrawn?

This can go on for 2 to 4 Withdrawls before you do finally get to getting to a Zero funds balance ....

I've not said anythng here, before but it still happen 3 or 4 times a week!

Yeah ... then play catchup!

[Saamee]

Yeah ... then play catchup!

Thanx for seconding that quirk ( you always wonder if it's just you! ) I guess it's been going on now for about 3 months... most likely after a platform software change....