Photo by Kyle Humfeld
THE SCENARIO
As happens with some regularity, I got a mailer from a company called 'Best Egg' this week, offering to lend me money. How lucky! The mailer touts this as a 'debt-consolidation' loan, with rates ranging from 4.99% to 29.99%*, depending on my creditworthiness (you'd think they'd have some idea of that before sending me such an offer).
Moreover, they charge you an origination fee of 0.99% to 5.99%, which is
deducted from the amount they give you. This means that if you borrow $10,000 and they charge you a 5.99% origination fee, they're only handing over $9,401, but you're paying interest on the full $10,000.
I know what you're thinking: this sounds awesome! Where do I sign up?
The question: If I were to borrow $10,000 from Best Egg for 10 years**, how much more would I...
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