Jairo Wants to Stop Paying His Bank of America Clean Sweep Debt Consolidation Loan
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Jairo wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
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“Dear Steve,
I opened that Bank of America Clean Sweep six months ago and I keep paying every month a little more than the minimum but the amount is almost the same and they reduce my credit card from $7000 to $500. My wife’s job is giving her less hours every month and she is the head of household, we barely can pay this account.
If we stop paying the clean swip from BA how this can affect us?
Jairo”
Dear Jairo,
Bank of America extended credit to you with enthusiasm and encouragement and if you stop paying it they will pursue you with vengeance and hostility. Chances are very good that they will sue you for the debt and you will certainly wind up in collections and get calls and letters from bill collectors.
I previously reviewed the Bank of America CleanSweep offer in detail and pointed out all the “gotchas” in that offer.
But your situation brings up another point. You see credit is granted in absolutes, as in you must absolutely repay this debt in accordance with the terms you agree to when you sign a contract for credit. But life is anything but absolute. We have no idea what is going to happen to us at any point in the future, like hours being cut.
Frankly, it looks to me as if you simply got sucked in to the negative terms and conditions associated with the credit offer; they have reduced your line of credit down to the minimum, your interest rate will probably go up and the minimum payment is making little to no progress in actually reducing the balance.
All of those negative consequences and more are part of the CleanSweep and other offers.
Some solutions to consider would be a debt management program if the reduction in hours was temporary and likely to go back up in the near future. But bankruptcy is always a legal option to discharge legal debt you can’t pay anymore. You should consult a local bankruptcy attorney and ask for a free bankruptcy review for more information about how bankruptcy might help or hurt you.
Steve
Source: Jairo Wants to Stop Paying His Bank of America Clean Sweep Debt Consolidation Loan
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