A Review of Bank of America Clean Sweep Debt Consolidation Plan

Bank of America offers a loan program that is called the Clean Sweep line of credit. This loan is for people that are in need of debt consolidation. There are many tricky aspects to this loan and after we go over the terms, you may wonder as I did, if Bank of America really wants you to ever pay this loan off.

The Clean Sweep line of credit offers a variable interest rate that can go as high as 25.49%, this is based on your credit. So the more desperate you are to get your debt under control, the higher your interest rate is going to be.

Bank of America will charge you a 3% transaction fee every time you need an advance. Most important is the fact that every time you request an advance the bank restarts your payment term. Those terms can go as long as 72 months. That is six years of your life, and in a moment we are going to look at the way MBNA or Bank of America will rack up your fees.

With the merger of MBNA and Bank of America here is what they advertise for their debt consolidation loans. You may borrow up to $25,000 to help you be able to pay off those high interest debts. You could possible get an interest rate as low as 9.49% variable APR. Remember we already pointed out that it is based on credit and you may end up with an interest rate over 25%. There is no collateral needed for this loan, there aren’t any pre-payment penalties. There isn’t any annual fee, and you can get a decision as soon as 15 minutes after applying. The added benefit of the loan is that you are building a re-accessible cash reserve as you pay down the balance.

More of the fine print that most people do not read before signing a loan document. So read it here. MBNA will recalculate your APR by adding a margin to the highest U.S. Prime Rate as published in the Wall Street Journal on the last publication day of each month. Which is how you may start at 9.49% and go as high as 25.49%. They also reserve the right to adjust your APR on a monthly basis due to changes in the prime rate. The also reserve the right to change your fees or other credit terms at their discretion.

Repayment term and payment amounts given are only estimates which may change when your APR changes, if you by chance make a late or partial payment then fees will be assessed. The three percent transaction fee is simply a minimum of $5 and there is no maximum limit. The transaction fee is added to your loan and it will accrue interest and finance charges. OH! And they let you know that there is the possibility that other fees may apply.

Based on what I have read from customers that have worked with this program and bank was that they wish they had gone somewhere else. The program though it sounds like the answer in the beginning can put you in more of a financial burden then what you started out with. Plus, I haven’t seen very good reviews of the customer service that you receive. So as I always say “Buyer Beware”, shop around and get the program that is best for you.