Bank of America is a known and trustworthy name that has been in the US financial market for years together. As market scenario has changed in the recent past, all the financial organizations are coming up with newer packages for the consumers. All of them are aimed to help the consumer, have a good cash flow along with no fear of losing their homes. Bank of America’s (BOA) latest package is called ‘Clean Sweep’ line of credit. It aims for the consumers who are in need of the debt consolidation.
Now, as well know banking is a tricky game. You need to be very cautious before getting in to any deal. The contracts can have many hidden clauses. These you do not come to know initially, but once you are made to pay the interest & fees, your pocket surely knows them! The technical terms can be tricky and can put you in a fix. Further, there are words scribbled at the bottom of the page in small letter size. We often do not read them and take them for granted, but there lies the catch!
Similar things apply to this ‘Clean Sweep’ Plan for debt consolidation! In fact, if you review it in detail, you shall realize that it puts you through such a vicious circle of debts, that you would barely be able to pay back in full ever!
Here are some points that would help you understand the hidden clauses of debt consolidation plan:
· It gives you a credit on the variable interest rate that is based on your credit. And the more desperate you are to get the mortgage deal done, the higher goes the rate of interest. In fact, to be practical, the rates of interest can go as high as high as 25.49%.
· Further, the Bank of America charges you transaction fees at the rate of 3% every time you approach them for an advance.
· Next, when ever you take an advance, the bank would restart your payment terms. These terms could go as long as 6 years that is 72 months. All this time, the Bank of America would rack up the fees as well.
· Actually this scheme was launched after the merger of Bank of America with MBNA. They advertise in the debt consolidation loans that you can borrow up to $ 25,000. Also they say that you shall get an interest rate lowered down up to 9.49% at variable APR. Now what we need to understand is that the interest rates here would be based on your credit. So it actually can never stay up at that level. The bottom line there in the contract states that these prices would vary as per the rates of interest published in the Wall Street Journal. And there 9.49% is just the minimum. Maximum has no limits.
The only benefits of this loan are that you can get it approved at no collateral security and no annual fees. You get a decision on the same with in 15 minutes from the moment you contact them. Also there are no prepayment penalties. Above all, it serves you as a re accessible cash reserve, the moment you pay the balance.
At the end, what we would like to say is that the buyer needs to be aware before in to any contract! Do not make hasty decisions and measure every step you take!