Tell Me More About The Bank Of America Debt Relief Scheme

Bank of America has created a Debt Relief Scheme for its clients and I want to know more about it? I hope this can be benefecial to all of us! We really need steps like these to ensure that we can pay off out debts!

This program is a hardship program offered by BOA to their financially-distressed clients. Their debt relief options include any one of the following:

* lower the interest rate
* reduce the monthly payment
* eliminating fees
* referring the customer to a debt management plan

The first three practices are largely similar to a regular debt management plan offered by a credit counseling company.

Actually LallyPop it isn't really a hardship program offered specifically by BOA to their customers. It's a loan program that offers help for individuals who have suffered financial hardship. This loan in particular works like your average consolidation loan

The program works like a line of credit. The ceiling amount is $25,000 and as with other lines of credit, it has a variable interest rate. It can go as high as 25.49%, and the interest rate that will be granted to you will be based on your credit history. Basically, if you are in need of a loan and your history has not been very good, it's very likely that your interest will be higher.

The loan also does not have collateral, and no pre-payment penalties will be charged. Also,  the lowest rate that an individual can qualify for is 9.49%.

Since this is also a loan with a variable-rate interest, it is very likely that the interest rate will change monthly. BOA will add a margin to the highest Prime Rate set by the Wall Street Journal, and your APR will be calculated according to that result. Fees will also change monthly, and other terms may also change at the company's discretion.

This seems to be a very unsafe type of loan if you ask me, as you may never know how much you will be paying by the time the next billing cycle rolls around.

waht happens if i fall behind on payments?

Well since the repayment terms and payment amounts vary, they remain as mere estimates. And in the event that you make late or partial payments, you'll be charged fees. You'll also have a 3% transaction rate whenever you make an advance and there is no maximum limit for that, really.