Bank of America has partnered with National Foundation Credit Counseling (NFCC) to help people manage their debts.The new debt management plan introduced by Bank of America is known as “Call to Action”, which is specifically for people dealing with financial emergency or other unexpected conditions.
Credit Card Debt Management Plan – Bank of America
The bank has agreed to allow people to repay credit card debts at lower interest rates. Bank of America expects to grant Debt management plans, credit card relief, and other programs to approximately 1.2 million credit card users.
According to NFCC, more than 40 million people have prevented bankruptcy, escaped defaulting repayments, and benefited from such plans.
Working of Debt Management Plan – Bank of America
This plan is targeted to help people facing financial crisis. This class may be defined as people facing problems due to job loss or other financial emergencies. However, Bank of America hasn’t waived off all the charges and interests. People will need to pay at least 1.75% repayment rate on the total debts. There is also something for people who cannot be categorized under the above class. For them, the minimum repayment rate would be 2% of the total debts. However, the maximum rate charged for this class is 3%. So, it’s considerable cut of interest rate and is extremely useful for Bank of America credit card users.
Example of New Debt Management Plan – Bank of America
So, if a consumer, for instance, has $40,000 as his total outstanding payment, his usual minimum payment would be around $1200. However, if he qualifies to be a person with emergency crisis, he will have to pay just $700. And if he falls under the second category, he will have to pay $800.
Along with helping people through new Debt Management Plan, Bank of America also encourages them to save money for any kind financial emergency. So, the next time they face any hardships, they don’t have to be emotionally stressed or borrow some more from others. If you think you fall under any of these categories, you can call up Bank of America at (800) 500-5306 to get the best debt management plan for you.
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