Debt consolidation from Bank of America. Help from the Clean Sweep program.

You can receive help with consolidating debt from a loan program offered by Bank of America. They call the assistance program Clean Sweep. Find information on this debt assistance program from Bank of America and how it can provide you with options to consolidate debt, at what will probably be a lower interest rate.

Bank of America is offering the Clean Sweep debt consolidation loan to customers as an effective way to get out of debt, whether credit card or medical debt, with one predictable, consolidated monthly payment. Overall, there are both some pros and cons to this offer. Here is a fairly quick summary of Bank of America’s CleanSweep debt consolidation loan product. Contact BOA at (800) 500-5306 for more information.

Bank of America Clean Sweep Debt Consolidation Pros

• One of the pros is that your interest rate can be as low as 8% or so. This rate is much lower than most people currently pay on their credit card debt. However, a con is the interest rate is a variable APR, and is expanded upon below.
   
• They will charge you a 3% transaction fee each time you need an advance. So if you take out only one advance, and you also have the lower 7 or 8% error rate, this will still benefit you as that 3% fee will be a one time fee, and the lower rate makes it worthwhile. However, you can’t take out multiple advances, as that fee is too high to keep paying it. And if you do not qualify for a competitive interest rate, than the 3% fee may be too much to pay.
   
• Some additional pros of this option from BofA include there is no collateral needed for this loan, so you are not mortgaging you home or personal possession! You can prepay the loan, with no additional fees needing to be paid. Another added benefit of the debt consolidation loan is that you are building a re-accessible cash reserve as you pay down the balance. No annual fee is due, and you can get a decision within 15 minutes of applying.
   
• This product is probably a better option than going thru a debt settlement company or program, as you are dealing directly with BofA rather than relying upon a third party. Explore other options to get out of debt.

 

 

 

 

• A pro of Clean Sweep is that you can take out a debt consolidation loan for as much as $25,000 and it can be deposited directly into your checking account. The amount which should go a long way towards paying off your debts.
   
• If you have a decent credit rating, receiving a debt consolidation loan at an interest rate of 8% or so from the Bank of America clean sweep program is a tremendous pro, and such a low rate can go a long way towards helping you eliminate debt. An 8% interest rate, even adding a one time 3% transaction fee, is much lower than typical credit card rates of 15-20%.
   

Cons to the BofA Debt Consolidation Program

• If you use this debt consolidation loan, you can’t miss a payment. If you miss just two payments over a 12 month period of time, BofA reserves the right to increase your interest rate to up to 28%. That rate can be crippling.
   
• A con is that after every loan you take from Bank of America, they will restart your payment term again, and it can be as long as 72 months. Once again, this is not too much of a negative if you only take an advance once. But you need to be disciplined and can’t take out multiple loans.
   
• You may be able to negotiate with Bank of America to get debt help, or even try asking for a credit card hardship program. More. Some sometimes there are better options than a loan to consolidate debts.
   
• The interest rate is variable, and depending on the future direction of interest rates and a borrowers creditworthiness, the interest rate can go as high 25%. So since the rate can change, it can hinder your ability to predict future payment amounts.