Have you been offered a BOA payment plan?

[pcn]

We're only between 1-2 months behind right now, but I was offered a "60 month payment plan" today. From what I understand it would be a very ow interest plan designed to pay off our balances (4 cards) within 60 months, with no late charges, etc. The catch is that we are still negative overall when they reduce our payments (total payment dropped from $640 to $340 per month) so they want us to negotiate with other cc's to get their payments reduced. Does anyone have experience with this type offer? Maybe they see the writing on the wall...

[optimistic1]

This belongs in the collections forum, not Ch.13.

[HHM]

pcn

I am getting a little concerned by your apparent sense of desperation to try "anything" to avoid a BK. It is that sort of mind set that allows people to get taken advantage of or otherwise make poor decisions. Maybe I am off-base, (and right now I cannot search for any earlier posts about your circumstances).

I think the writing is on the wall for you, if after getting this payment modification, you still can't afford it; what's left?

[pcn]

We're not actually in collections yet. It's something they offer if you know to ask for it. If you'd fel better if this was moved, please do.

[pcn]

pcn

I am getting a little concerned by your apparent sense of desperation to try "anything" to avoid a BK. It is that sort of mind set that allows people to get taken advantage of or otherwise make poor decisions. Maybe I am off-base, (and right now I cannot search for any earlier posts about your circumstances).

I think the writing is on the wall for you, if after getting this payment modification, you still can't afford it; what's left?

If desperation is looking at all possible options before committing to such an important decision, then I happily fit that definition. I probably wasn't as clear as I should have been in my original description. To qualify for their 60-month low interest plan, you have to show that you pass their test. The numbers I gave her show us as passing their "needs" test, but by too much. As with the bk forms, you can pad the numbers. Our original numbers may have been a little too padded and missed their mark. If we use current budget numbers we're not negative, since as most people here, we cut what needs to be cut to make things work. I am slightly concerned that it appears some people seem to push others too quickly to file, maybe without investigating all reasonable options. Just as everyone here arrived here with different circumstances, there probably is not one cookie cutter solution to all their problems.

The original questions are what Im really interested in hearing about. Has anyone pursued one of these offers, are they for real (hidden catches, are they really just fishing?), and how did things turn out if they pursued things?

[frustrated7]

One option you might want to consider if you think you could actually pay your balances off in full in five years if given a little assistance (lower interest rates, lower monthly payments) if to look into a debt management program. We tried it for a few months, but it didn't work out for us, since the number we initially started at grew by several hundred dollars and it became impossible to handle anymore. I'm surprised BofA didn't recommend this to you, since they were going to help us out when we first started having trouble but said that it wouldn't actually help us for just them to work with us, since we would still have all the other cards to deal with.

It's time to take a really good look at your finances and explore all of your options. BK is a great option for many people here, but it isn't for everyone. One thing I cannot possibly emphasize enough is to NEVER try a debt settlement company.

I wish you all the luck. Please let us know what you decide to do.

[2Bshinyandnew]

If desperation is looking at all possible options before committing to such an important decision, then I happily fit that definition. I probably wasn't as clear as I should have been in my original description. To qualify for their 60-month low interest plan, you have to show that you pass their test. The numbers I gave her show us as passing their "needs" test, but by too much. As with the bk forms, you can pad the numbers. Our original numbers may have been a little too padded and missed their mark. If we use current budget numbers we're not negative, since as most people here, we cut what needs to be cut to make things work. I am slightly concerned that it appears some people seem to push others too quickly to file, maybe without investigating all reasonable options. Just as everyone here arrived here with different circumstances, there probably is not one cookie cutter solution to all their problems.

The original questions are what Im really interested in hearing about. Has anyone pursued one of these offers, are they for real (hidden catches, are they really just fishing?), and how did things turn out if they pursued things?

The hidden catch, as far as I can see is that they know the writing is on the wall and they are doing everything they can to get whatever they can from you. Since you already owe them $$$, BOA's "criteria" to qualify for their "offer" is pretty much bogus. It doesn't matter what their "means test" is, they will happily sign off on any agreement that makes them money and truthfully if they can squeeze a few bucks out of you, they will, making it seem like they are doing you this huge favor and that you "qualify" for their special payment arrangement.

Of all the creditors I have dealt with personally and read about here on the forums, BOA seems to be the one who has given the most ridiculous amounts of credit to begin with, and stretch the limits as far as using borderline and not so borderline unethical collection tactics.

[OhioFiler]

Now that you happy handed BOA all your financial, employment, mortgage/rental, asset info to "pass" their means test now what? Why not let BOA come in and audit your life, tell you how much you can spend on this or that? That is what they are doing.

Did BoA not jack the interest rate up on your cards only to tell you that if you are on our "special plan" we will lower it? And then they made you "qualify" to be on the plan to see if they can't get more money out of you. How? By asking you to get other CC's to lower the rates also.

You want the best BOA deal, wait till your 9 months or more late and then offer to settle for 15% of what you owe. There is your best deal if your not going to file BK.

But it was really nice of you to hand over to BOA all your current financial info so they can tell you if you "qualify" or not.

My first thought when I read the "BOA means test" story was I hope those numbers are close to the numbers used when you file bankruptcy. I can see BOA objecting.

[pcn]

Now that you happy handed BOA all your financial, employment, mortgage/rental, asset info to "pass" their means test now what? Why not let BOA come in and audit your life, tell you how much you can spend on this or that? That is what they are doing.

Did BoA not jack the interest rate up on your cards only to tell you that if you are on our "special plan" we will lower it? And then they made you "qualify" to be on the plan to see if they can't get more money out of you. How? By asking you to get other CC's to lower the rates also.

You want the best BOA deal, wait till your 9 months or more late and then offer to settle for 15% of what you owe. There is your best deal if your not going to file BK.

But it was really nice of you to hand over to BOA all your current financial info so they can tell you if you "qualify" or not.

[pcn]

What other debt do you owe other than BoA and why are you behind?

Several other cc's, mortgage, no vehicle loans. (but why am I giving you all this important personal information.. ) .Only behind on BOA at this point, robbing peter to pay paul situation, using savings to make up the rest. wife not working, so income dropped by 1/3. We could keep afloat for a while, but eventually would run out of reserves. Why do you ask?

[HHM]

Several other cc's, mortgage, no vehicle loans. (but why am I giving you all this important personal information.. ) .Only behind on BOA at this point, robbing peter to pay paul situation, using savings to make up the rest. wife not working, so income dropped by 1/3. We could keep afloat for a while, but eventually would run out of reserves. Why do you ask?

What are your reserves in, 401K, IRA etc?

Let me ask this...if you didn't have any credit card debt, could you pay your expenses with your existing income?

[2Bshinyandnew]

I'm sure I did not speak to the exact same person you did, but I owe BOA about $32K, and when I was about 6-8 weeks behind is when the "special" reps started calling. They had all sorts of wonderful ideas on how I could take care of this debt. The bottom line was, my income was cut in half, and I could not pay my debts with the income I had or could reasonably expect to have in the near future. They knew by pulling my CR I had some equity in my house, possibly had some retirement assets, and they were bound and determined to get me to send them something to show them good faith

So, I did some research and here I am I still have my debts and will until I file BK, but had those friendly people at BOA had their way I would be minus my exempt assets, would possibly owe a whole bunch of taxes on forgiven debt, and my CR wouldn't be any better, probably worse off than if I had worked with those nice people who wanted to "help" me.

Honestly, can you make ends meet even if all your credit cards put you on a no interest 60 month plan? If yes, and you are able to get the same offer from all your credit cards then you are not really bankrupt anyway.

[pcn]

What are your reserves in, 401K, IRA etc?

Let me ask this...if you didn't have any credit card debt, could you pay your expenses with your existing income?

Yes, easily. Probably close to 2k extra per month if no cc debt. Reserves are low. 401k raided 2 yr ago to repair home, which is now worth less then 2nd mortgage...

[pcn]

2Bshinyandnew, thank you for the help. Your honest, helpful opinion is appreciated.

[HHM]

Yes, easily. Probably close to 2k extra per month if no cc debt. Reserves are low. 401k raided 2 yr ago to repair home, which is now worth less then 2nd mortgage...

How much credit card debt do you have? If you would really have $2000 extra per month with no credit card debt, after paying all expenses, how do you not have enough to pay your credit cards?

If you had $80K in CC debt with an average interest rate of 15%, and paid $2000 per month, you pay off the CC's in 56 months.