Information on Bank of America debt settlement programs.
With the challenging economy and job market, millions of Americans are having problems with paying credit card bills. Bank of America offers assistance from debt settlement programs as well as other tools. Many of the customers of B of A are exploring ways they can get help. Debt settlement program are of course an option, and the terms will vary based on the customers credit profile and financial condition.
More information is below, including phone numbers, on how to “settle” credit card or other bills. Bank of America does offer their own debt settlement program, and you will read examples of how real people are getting out of debt.
If you need help, you definitely should try to settle with Bank of America as soon as possible, as many people are currently having good luck in taking this approach. Their customers are also receiving good offers from Bank of America. According to a BOA spokeswoman, the bank plans on modifying and settling 1.2 million accounts this year, up 20% from last year. There is no end in sight for this trend.
Some of the assistance offered by Bank of America includes lowering interest rates to single digits, offering a repayment term of up to five years, and they will also settle unpaid debt. Other solutions may be offered as well.
Bank of America will definitely enforce the terms of the agreement. If someone misses a payment, or if someone is late on any payments of the agreed upon plan, they will lose their debt settlement agreement and it will be terminated. They will then either have to start making monthly payments on their credit card bills for the full amount or they may need to come up with the total money due on their outstanding bills. In some cases the lender will eventually help them resettle with a new program. You need to ensure you can fulfill the terms of your debt settlement plan before you agree to any deal.
Find how Bank of America offers debt settlement programs
- One consumer lost their job a year ago. While just recently they received new employment and are now back to somewhat of a stable income, their current credit card balance was over $60,000 as it was used extensively during the period of unemployment. After multiple phone calls and negotiations, Bank of America was willing to settle for just $11k over 6 installments. The installments are as follows. $500 for the first payment, 4 months at $600, and then the last payment will be $8100.
- A BOA customer had several thousands of dollars in debt. They signed up for a debt settlement program that required them to pay back just 30% of their debt.
- In 2008, there was an example of someone who owed $17,000 on their credit cards. They ended up settling with BofA. The agreement was for the card holder to pay back $4200, and the agreement called for the consumer to pay back the debt over several months, and the payments ended February 2009.
- A settlement for $12,500 on 60K in debt.
- After several calls and paying a couple of bills late, they returned one borrower’s calls and contacted them. They originally offered 30% settlement in 4 installments on this perons’s unpaid debt, but they couldn't afford that deal. So the customer countered their deal, and they told them they could pay at most 10% over 12 months. They countered offer and came back with an offer of 17% over 6 months. The borrower agreed to this plan, as they can manage it and it will allow them to get out of debt.
- Someone settled with Bank of America for 25%. Their credit card was 20K and they agreement to a settlement for $5K. This person even struggled with making one payment in their plan. They contacted BOA immediately, in advance of when it was due, and what they did is they extended the payment at one point. They were great to work with and provided flexibility.
- In addition to settlement plans, Bank of America offers additional credit card assistance programs that can lower interest rates, extend payment terms, and more.
- Bank of America offered a customer who had over $60K in debt a decent program at first, but then came back with better offers. After the bills were unpaid for 60 days, they offered a deal at 35k. The person still could not afford it, so at around 120 days past due they offered another deal at 24k. This offer still could not be met, and within an hour they immediately called back and offered $13k. The consumer agreed to this 13K debt settlement program.
- Someone was desperate for assistance, they figured they had nothing to lose as they were about to go under, so they called and asked for help. They settled the account, which included two cards and 31k total in debt. They settled for 20% on the dollar, or about $6,000, and they said it needed to be paid within 90 days.
- A customer owed $32,000 on two Bank of America accounts. After missing a couple months of payments, and calling BOA multiple times, the bank tried to settle with the customer for approximately 60% of what was owed. The offer was rejected as the customer could not pay it, so after several more weeks of negotiations the parties settled for about 40% of the outstanding debt, or $13,000.
- A customer contacted BOA upon two different credit cards they were in arrears on. After as many as 10 phone calls, the debt settlement plan reduced the amount they owed from $12,000 to $7,000. The customer then had a medical emergency, notified Bank of America, and after proof was given, another 1K was knocked off the amount due.
- Bank of America reduced a borrower’s debt by about 40%. However they also referred this person to a local non-profit credit counseling agency for additional follow up services.
- The terms can include many different approaches. A low income household agreement to a settlement program that reduced the balance due by 5K (or 40%), and also lowered the future APR on any new transaction from 15% to 12%.
Phone number and applying to BOA debt reduction or settlement
The main phone number to dial will be on the back of the credit card. Contact them at (800) 500-5306 for more info on debt settlement programs.