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I Have a Lot of Bank of America Debt I Need to Clear. – Dan

By on October 20, 2009
I Have a Lot of Bank of America Debt I Need to Clear. – Dan

“Dear Steve,

Thank you in advance for your assistance. I have roughly $50K in credit debt. I have been a customer with BofA for 20+ years and recently thought that I should approach them. Obviously, your article made me re-think that. In general, I am looking to consolidate and just give myself some sort of peace of mind. What would you recommend?

Dan”

Dear Dan,

I’m always in favor of people communicating directly with their creditors to see what might be available. It won’t hurt to ask them. But there are really three basic ways to dig your way out of debt as long as you can afford your currently monthly minimum payments.

  1. Get a Loan – Places like LendingClub.com allow people to borrow money to consolidate their debt at favorable rates. Lenders are actually average people like you and me that pool their money together and lend it out to others in need. Check out LendingClub.com, worth a look.
  2. Debt Management or Credit Counseling – A debt management plan may be able to reduce your interest rates depending on who you owe. While enrolling in a debt management program will not directly hurt your credit, included cards will be closed by the creditor and you’ll lose the benefit of the ongoing credit history with those cards. A debt management plan is worth checking in to as well.
  3. Debt Reduction – You can payoff your debts faster using the debt snowball approach. This will allow you to accelerate your payments and get out of debt faster.

The downside here is that as long as you hold a balance on a Bank of America card they can play with your terms, close your card, or basically do whatever they want to.

Please update me on your progress by

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

One Comment

  1. shannon

    October 20, 2009 at 3:28 pm

    i had a bank of america card i called them told them i couldnt pay min. payment no more i owed 2300.00 they settled with me for 689.00 you might want to contact them to see what they say.

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