I have a personal loan with BofA and it’s somewhere at 23%. I’ve been trying since i got it to have the APR lowered but keep getting excuses as to why they wont. Now i’ve lost my job and can’t afford the payments. When I called BofA once again they said they couldn’t lower the APR to help because that would be re-approving the loan and they had to report to the government that they were lending money in good faith, but since I was unemployed they shouldn’t be lending me money so they left it at the 23% and then nicely told me they were freezing both my loan and my BofA credit card. I cant find any relief from my $850 payment per month which is almost half of my unemployment check. Do you know anything I can do to get relief? My mortgage company is trying to work with me but BofA wont.
Can you tell me how I can get BofA to lower my monthly payment on my personal loan?
I asked my friend Mike Killian to answer your question for you. I wanted to make sure you got an answer as quickly as possible as I’m a bit backed up at the moment. I’ll be watching the comments on this question and be around to help if you need me.
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To answer your question the way you have asked it, the answer is you cannot get them to do it if they say “no”. Now let me expand on my answer and offer you a couple of alternatives.
Without finding another source of funding you will have basically three options. The first alternative is contacting a debt counselor for a Debt Management Program (DMP). Another option is debt negotiation. With this option you or a professional debt negotiator offer less than what you owe…. Say 50%. That sounds good on the surface but has some drawbacks. Debt negotiation usually requires a lump sum payment and completely destroys your credit because for a creditor to accept less than agreed, they must think that is the best they will get. You make them think that by not making any payment to them for 2-3 months. Obviously your credit goes in the toilet with this approach. Additionally any debt forgiven above $600 will be taxable by the IRS as added income.
The final option is bankruptcy. You can usually get an initial free consultation from an attorney to determine your option with this course of action. But you should at least look into this option as an alternative.
I hope this helps.
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