Mary Grace McCormick, Credit Writer
@mg_mccormick
Yes, Bank of America does debt settlements, but you might not negotiate with Bank of America directly. Depending on the age of your debt, you will need to reach out to either Bank of America or your assigned debt collection company. Generally, you will negotiate with a collection agency once your account becomes 180-days delinquent, also known as default status. You can find out whom to contact by referencing the latest notice received and then trying to negotiate an amended payment agreement.
If your account has not defaulted yet, you can take advantage of a few financial assistance options that Bank of America offers. These include eliminating late fees and reduced monthly payments and interest. If you want to pursue these debt management options instead of debt settlement, you can reach out to Bank of America by calling customer service at 855-891-3401 or by chatting online. If you are not interested in these options, you can request a debt settlement, but prepared to answer more questions about your income, expenses, and the reason for your inability to pay your balance.
If your debt has been assigned to a collection agency, you will need to negotiate with that agency instead of BofA. Research debt settlement with that agency before initiating contact, so you’ll know what to expect.
Once negotiations begin, make sure your initial offer is low enough to allow for negotiation. When you reach an agreement you can afford, make sure to obtain a signed debt settlement agreement letter.
On average, Bank of America debt has been settled for 25% - 40% of the original balance. Every situation is unique, however, so you should examine the factors that help drive debt settlement. These include the existence of a financial hardship (loss of income due to unemployment or physical inability, for example), the age of the debt, the collection agency involved, and your available cash.
People also ask
How much will a credit card company settle for?
A credit card company will settle for anywhere between 30%-80% of the balance owed. Credit card companies tend not to publicize settlements, so there are no hard statistics on success rates or settlement amounts. However, a creditor won’t accept less than you owe if they have reason to believe you’re capable of paying the full amount.
Key Facts About Credit Card Settlements
- Credit card companies are most likely to consider debt settlement...
Is debt settlement worth it?
Debt settlement is worth it when a fair settlement can be reached quickly, allowing the borrower to satisfy their obligation for less than the full amount due by making a lump-sum payment that they can comfortably afford. It’s best if the borrower does not need a good credit score for anything important, such as a mortgage application, in the months that follow, either. But debt settlement involves an enormous amount of risk. There’s the risk that...
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