A reader sent in this offer they received from Bicoastal Funding for a debt consolidation loan. The advertisement says that not only can you repay your $80,500 of debt with their new loan but they will give you an additional $10,00 on top of the amount needed to repay the example debt.
I’ve written about some other Bicoastal Funding mailers in the past.
It looks like the reader wrote some notes on the mailer and was planning to ask some good questions.
The example of debt repayment was prominent in this mailer so using the Credit Karma online debt repayment calculator I wanted to see how the example stacked up.
Here is the mailer example.
If you repay $80,500 of debt at 19.9% at $1,771 per month it will take 86 months to repay the debt.
If you take them up on their offer and pay back $90,500 at 3.98% and $434 a month it will take 356 months to pay the debt off.
This seems to tack on an extra 22.5 years of debt repayment. At the higher interest rate, you’d pay about $70,000 in interest over the 86 months. With their offer over 356 months you’d pay about $63,000 in interest.
However, if you took them up on the offer and actually got a 3.98% unsecured interest rate because you have pristine credit then repaying $80,500 at 3.98% and at $1,771 per month would take 50 months and only cost $7,000 in interest.
I’d love to hear from people who received a final interest rate offer after talking to Bicoastal Funding and get some feedback on the actual interest rate offered. You can post your feedback in the comments section below.