Bank of America has joined with other credit card companies to support a new hardship debt management plan. They have partnered with the National Foundation for Credit Counseling (NFCC) in this capacity.
The new plan, which is part of a program known as “Call to Action”, creates a second level of debt management plans (DMP) for customers who are in particular distress due to a financial emergency or some other unexpected situation. This can even include an unexpected job loss. It allows those customers a lower repayment rate on their account. This year BOA has said they expect to provide credit card relief, DMPs, and hardship programs to almost 1.2 million credit card holders.
Per the NFCC and its statistics, for over 40 years millions of consumers have avoided defaulting on their debts, prevented a bankruptcy and benefited from repayment programs known as debt management plans. These plans have creditors providing eligible customers with some type of repayment concessions. Some of the assistance provided can include waiving late and over-the-limit fees, miscellaneous charges, and also many will provide a reduction in interest rates on the credit card. What is the current challenge though is that during these difficult economic times, fewer and fewer consumers have high enough household income to be eligible for, or they do not have the ability to maintain a traditional DMP. So the new Call to Action hardship debt management plan from Bank of America and others can be a great option for them. Also, read more on other Bank of America programs, including debt settlement, hardship, and consolidation.
So, if you need to be provided a real life example, what this means is that a consumer classified as a hardship customer with $40,000 in unpaid debt would now have a minimum payment of about $700. Today, that same customer may have a payment of as high as $1200. If the customer is not a hardship customer, their minimum payment would be $800.
Not only will the new debt management plans that are supported by Bank of America help borrowers get out of debt, they will also encourage them to set aside funds for a financial safety net. This is one of the key requirements of the “Call to Action” plan. So the next emergency that arises the family has the cash to deal with it.
Contact Bank of America at (800) 500-5306 and ask them about your options for this or other debt management plans.
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