Thursday, February 16, 2012

How I Use Lending Club Portfolios

In my January post Six Months and I'm Reaching A State of Peace, I stated:

I feel like I'm emerging from the Fire Swamp, and now it's time for Prince Humperdinck, I mean Tax season. (Maybe I will name my portfolio Buttercup).
Well, I took that suggestion and segmented my Notes into Princess Bride themed Portfolios.

The Humperdinks are the Late, Default and Charged Off Notes. These are the Notes that you know you don't want around but you probably can't get rid of them. The Rugen Portfolio holds the pre-Grace Period and Grace Period Notes. These are insidious Notes that don't sound all that bad, but can lead to more Humperdinks.

Then we have the Buttercup Portfolio. These are the newly acquired Notes that have no or one payment. They have not proven themselves. Then there is the Wesley Portfolio. These are the Notes that have never had payment problems and have payed me at least twice.

This segmentation helps me avoid looking at Humperdink Notes (Late or Charged Off) while paying attention to the insidious Rugen Notes (Pre-Grace Period or Grace Period). And I can look through my good Notes (Buttercup and Wesley) for Pre-Grace Period Notes by sorting by Payment Due Date and look at the Notes for Collection Logs at the bottom.

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