Partnering with National Foundation of Credit Counseling (NFCC) and many credit card providers, Bank of America has introduced new debt management program for people facing financial hardships.The new debt management program by Bank of America can also be called as “Call to Action” is tailor-made to help people repay their outstanding debts. Specifically designed to repay credit card debts, this program is estimated to help around 1.2 mn credit card holders in America.
Debt management programs have been quite successful in the US. According to National Foundation of Credit Counseling, millions of debtors have successfully prevented filing bankruptcy due to these plans. These programs are not only helpful for people facing financial crisis, but creditors have also benefited from it. They have started getting repayments from people they least expected.
Debt management program by Bank of America provide benefits like waiving of over-limit fees and late fees, considerable reduction in interest rates, and reduced monthly payment amount. Not many people are now able to manage the repayment plan offered by traditional debt management programs, mainly due to recent global crisis. Hence, this new debt management plan by Bank of America is a huge success. Along with credit counseling, Bank of America has also introduced debt consolidation, debt settlement, and hardship management, which are too proving to be successful.
There are two types of debt management programs introduced by Bank of America. The first program is for people facing financial emergencies like job loss, hospitalization, or divorce. Hence, the repayment interest rates charged on the outstanding debts of these people is 1.75%. This is quite low compared to the previous interest rates.
Second types of people who can be benefited from debt management program by Bank of America are those who aren’t able to repay their debts due to poor financial conditions. For them, the interest charged on monthly minimum amount is 2%. Depending on their repayment capability, the rate can go higher up to 3% as well. It is still quite lower than the initial APR. Hence, most of the people in the US believe that the new debt management program by Bank of America will solve their financial problem and help to lead a debt-free life.
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