Debt consolidation from Bank of America. Get help from the Clean Sweep program.
You can receive help with consolidating your debts from a loan program offered by Bank of America. The resources from BOA vary and change - some may no longer be offered. Bank of America call the assistance program Clean Sweep or they offer other options as well. There may also be additional services available. Find information on this program, as well as others, from Bank of America and learn 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 improve their financial condition. It can help clients 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 reduced to as low as 8% or so. This rate is much lower than most people currently pay on their credit card bills and other loans that they may currently have outstanding. However, a con is the interest rate is a variable APR and this 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% interest rate, this will still benefit you as that 3% fee will be a one time fee. So while there is a cost involved, the lower monthly interest expenses can often make 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 your home or personal possession! This will somewhat reduce your risk. 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 related program as you are dealing directly with BofA rather than relying upon a third party. Explore other options to get out of debt.
- Another 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. This amount is great enough so it 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. Maybe the biggest reason is that the payments for that interest rate tend to be much lower than other consumer loans. Such a low rate can go a long way towards helping you eliminate debt and pay off your bills. An 8% interest rate, even after adding in 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 or else there will be an impact to the monthly payment that is due. If you miss just two payments over a 12 month period of time then BofA reserves the right to increase your interest rate to up to 28%. That rate can be crippling so you need to ensure you stay on track with payments.
- 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 instead of using this Clean Sweep program. Some sometimes there are better options than a loan to consolidate debts and people really need to explore all of their options, and find more about using credit card hardship programs for relief.
- 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% over an extended period of time. So since the rate can change on the upside, it can hinder your ability to predict future payment amounts.
For more information on Clean Sweep or other debt consolidation loans from Bank of America, the customer service team can answer all questions. Note the program may no longer be offered but other assistance can also be explored. Or they can help the customer apply for a program. Call (800) 500-5306 for information.