Disclosure: This is a sponsored post
Recently I had a chance to talk to Kevin Yu, who is one of the co-founders of SpringCoin. We discussed their “spending insights” that are within the SpringCoin program and he told me that as time goes on, the insights get more and more detailed based on your personal situation. Basically they’ll be able to pinpoint exactly what you’re spending on and give you alternatives, or provide you with coupons to the merchant.
Another cool thing about SpringCoin is their weekly goals and challenges. So, they’ll give you 3 weekly goals/challenges to complete that will help you save money and pay off your debts faster and then they give you a reward each completed task, which is a very nice incentive.
I’ve had a few people ask more detailed questions about SpringCoin (and since I’m a natural skeptic too) I thought it would be good to share the Q&A with you here.
And Then We Saved: Is SpringCoin considered a debt consolidation company? If not, what is the difference between what SpringCoin does and what they do?
SpringCoin: We are not a debt consolidation company. A debt consolidation company will pay off the bills and consolidate them into one payment (similar to LendingClub/Prosper). We give a cheaper alternative and tell people how to optimize their monthly payments to get out of debt quicker.
And Then We Saved: How does SpringCoin make money if people sign up for the free account?
SpringCoin: We don’t really make money from people on the free account, however, some clients may be eligible to “upgrade” their account to a premium plan depending on their interest rates and payments. It’s completely up to them if they want to upgrade or not. Later on, we’ll be able to provide money saving deals depending on their current bills. For example, if they’re spending $100/month on cable and internet with Comcast, we might be able to give them a deal through DirectTV for half the cost.
And Then We Saved: When clients are on the Premium account how does that differ from the free account?
SpringCoin: The premium plan allows the users to significantly reduce their interest rates and payments. In this case, we’ll take one monthly payment and disburse it to their creditors and get them on a structured payment plan to get out of debt in less than 60 months. We don’t offer this to everyone, only to those who can substantially benefit from it.
And ThenWe Saved: Does SpringCoin make money from the clients when they are on the Premium package besides the $35 they pay for the monthly fee? If so, how and from what?
SpringCoin: If clients are on the premium plan, we will take the money and disburse it to their creditors according to the arrangement. Typically, the clients monthly payments will be lower than what they are paying now, and can see interest rates anywhere from 0-15% depending on who their creditors are. If and only if they decide to go on the premium plan, we’ll ask them to provide their banking information so we can ACH the money and pay their creditors.
And Then We Saved: Does SpringCoin talk directly to the client’s credit card (or other debt companies) and negotiate with them? How does that work exactly?
SpringCoin: We don’t talk directly with credit card companies since we’re not a debt settlement company that negotiates settlements. However, people on the premium plan are able to get special interest rate reductions from their creditors.