Contact one of Bills.com ‘s pre-screened debt providers for a free, no-hassle debt relief quotation mark.
Call Your Creditor
Whenever you are experiencing fiscal strain, it is worthwhile to contact your creditors directly, before you miss any payments. In your event, you should call Bank of America and your other creditors to find out if they offer a fiscal hardship program that could give you some irregular easing. You may get an interest rate reduction or permission to make a smaller than normal minimum payment, without suffering late fees or a hike in interest rates .
If your credit is in dear standing, you can look into a balance remove offer as a debt consolidation solution, working to move equally much high interest debt as you can into a lower sake rate. Keep in mind that counterweight transfer offers come with a low ‘teaser rate ‘ that will adjust into a higher rate, once the basic period ends. It is your duty to know how farseeing the low rate lasts and what rate you will pay once it adjusts .
- If you are unable to pay Bank of America or your other creditors as agreed and you can’t work out a solution with them, you will find yourself subject to collections. Not every creditor behaves the same and even individual creditors treat different customers differently. Still, there are some basic strategies that Bank of America and other creditors use:
- Most creditors attempt to collect a debt internally, before referring the debt to a law office for collections.
- Some creditors use in-house legal departments to collect on the debt, though that is becoming rarer.
- Accounts generally are referred for legal collections when they are somewhere between six and nine months delinquent, depending on the creditor.
- Creditors have thresholds for what they identify as accounts worth pursuing via legal collections, with the amount owed along with state specific collection laws being primary considerations. For instance, creditors are less likely to pursue legal collections in states that don’t allow for wage garnishment, such as Texas, Pennsylvania, North and South Carolina.
- Some creditors pay closer attention to your specific account activity, when deciding whether to pursue legal collections. For instance, Bank of America, Citibank, and Chase, pay less attention to recent balance transfer activity or cash advances than do American Express or Discover.
- Creditors that are unable to collect anything after your debt has been contracted to a law office usually sell the debt to a debt purchasing collection agency. This frequently happens approximately 18 – 24 months into the collection process.
If BofA or your other creditors are not volition to work with you, you may need to seek serve from some character of professional debt relief organization, whether a credit counseling firm or a debt settlement firm. It ‘s valuable to know how you creditors work with their customers, so you can plan an effective scheme for getting out of debt. Based on research done by Bills.com ‘s editorial staff, here are some specific facts about Bank of America and how it deals with accounts enrolled in debt respite programs.
Bank of America Debt Consolidation & Credit Counseling
If you enroll a Bank of America explanation in a credit counseling firm ‘s debt management plan ( DMP ), you should expect :
- A monthly payment that is 1.98% of your account balance
- A minimum monthly payment of $15
- Bank of America sets interest rates for accounts in a credit counseling DMP differently than almost every other creditor. Whereas most creditors enroll accounts at a set interest rate, irrespective of who is enrolling the account, Bank of America looks at each consumer’s financial profile and makes a judgment call on a case-by-case basis. We believe the average interest rate reduction is to 9%, however some BofA accounts enrolled in a DMP can end up with an interest rate as high as 14.9%. If your current rate is at or below the level BofA determines is right for the DMP, not only is there is no reduction, but your rate will be increased! If you have a card with an interest rate below the one the DMP will put in place, you can try keeping the card out of the program, but most DMPs require you to place all of your cards into their program.
Bank of America & Debt Settlement
Debt settlement is an option to consider, if you are experiencing a fiscal adversity. Debt village is an aggressive form of debt relief designed to get you out of debt in 24-48 months, provided you can make the monthly broadcast requital. Bank of America is willing to negotiate settlements in many instances. Based on an audited account of hundreds of Bank of America settlements negotiated by professional debt settlement negotiators, the average settlement negotiated was in the range of 50 % of the balance clients enrolled in the village program. While an individual can try to negotiate settlements with his or her creditors, many people find that it is well worth paying fee for a reputable and experienced village ship’s company.
Make certain to find a debt village company that does not charge you any up-front fees and is in full compliant with FTC regulations. Bills.com recommends choosing a firm that is a extremity of the AFCC ( American Fair Credit Council ) and whose debt consultants are accredited by the IAPDA ( International Association of Professional Debt Arbitrators ) .
Bank of America & Legal Action
Bank of America is not the most aggressive creditor, when it comes to taking legal action against derelict debtors. Bank of America normally waits nine months after the first delinquency before referring its accounts to outside legal collections. not every report that is 9 months belated will be sent to collections. Bank of America reviews the size of the report balance owed, the country collection laws, and whether the debtors use history and assets make solicitation probable .
Bills.com recommends that you look into all your debt relief options before making any decision, in order to weigh all the pros and cons. Use Bills.com ‘s free Debt Coach tool, which was positively reviewed by the New York Times and by CNN. You can well review your available debt options, based on your priorities for getting out of debt, and receive a solid mind of what your sum costs will be .