[MUSIC] Hi there, Michael Bovee with
Consumer Recovery Network. Thanks for tuning in to our
YouTube channel DebtBytes. Today I want to talk to you
about settling credit card debt specifically with
Bank of America. B of A is one of the largest
credit card insurance in the country they have been for
many years. They are probably one of the
banks that historically let’s say of last maybe decade I’ve
been doing this kind of work for two decades or more but the last decade I would
consider them one of the most fair and favorable banks to
work with if you’re trying to resolve credit card debts that
you can no longer afford to pay. During the recession for
example, Bank of America was offering their struggling card
holders settlements that were better than virtually every
other bank out there. They don’t do much of
those kind of favorable settlements anymore. I still do see some say 25%
settlement would be available, but it is getting
harder to come by. They do settle pretty
consistently at the 40% rate like many major banks. They still do settle some at
even 30% in that area too. Whether you’re working directly
with Bank of America or working with one
of their outside, third-party contingency
debt collectors. The most common type
of debt collector who basically calls you and writes
you and tries to get you to pay. If they get you to pay anything,
that’s how they get paid. Otherwise, they’re not
really earning anything. That type of debt collector is
pretty easy to work with on Bank of America accounts when
you weigh several different things about yourself, and how
you’re seen by Bank of America, or FIA card services,
by the way, who does a lot of collection for
as part of Bank of America. It does a lot of collection for
Bank of America, the brand. FIA card services is
part of that company. So when you’re unable to make
your minimum payments and you’ve fallen behind by say,
five months, that’s about when you’re approaching
the opportunity to settle for the best savings rate, you’re
gonna be dealing with either FIA card services, or
Bank of America, and your targets are between 30 and
40%, realistically. If you are paying other
creditors on time and if you’re paying other
credit cards on time, if you’ve had things about your
account with Bank of America like just three months
before you stopped paying you just withdrew a cash advance
for thousands of dollars or used the card for thousands
of dollars of purchases, a huge percentage in other words
of your available credit limit is something that you recently
tapped into and/or you did a recent balance transfer
in the last say 12 months. And the balance, most of your B of A balance
is due to a balance transfer, those kind of percentages that
I’m sharing with you are going to change more often than not so
realistic targets are going to be situational if you have
some not so common issues, leading up to your default
in payments to them. But otherwise it’s gonna
be pretty straight forward, common to everything I talk
about with on YouTube channel here about settling with
your original creditors. Everything in that
video applies. Everything that I talk about on
settling with Bank of America on the consumerrecoverynetwork.com
website, have a couple pages dedicated to settling
with original creditors and specifically Bank of America. It all applies. When you deal with an outside
third-party collection agency with Bank of America, some things are going to
be a little bit different. They’re going to be paying
closer attention to not just other creditors that you pay,
but how collectible you look. Are you paying
the mortgage on time? You’re somebody that’s probably
going to be viewed as more collectible than somebody
who’s just paying rent, because you have an asset. Your home is
considered an asset. If you’re paying on a car
on time versus not. Those kind of things are going
to create a more collectible vision of you. And that means that while I
might look to settle with a debt collector for Bank of America
I’d say 25%, like I think you have a realistic shot because of
your hardships and everything. You’re somebody who might look
like you can pay 35 or 40%, so those targets
are gonna be adjusted depending on the debt collector, cuz they have different
internal policies as well. And depending on how
collectible you’re viewed. But Bank of America and
settlements or negotiations with them or
the collectors are really straightforward for
the most part. Debt buyers are not currently picking up a lot of
Bank of America debt. Bank of America is not
selling a lot of unpaid credit card debts right now, but at the time of this recording
it’s the end of 2015. I expect that to,
there’s some ebb and flow to collection laws and
against debt liars and things like that and
the creditors. I expect that to shift and I expect big banks like B of
A to start selling debt again. Sometime maybe later in 2016 or
even 2017, and that dynamic will change. So if your debt is say five
years old, four years old from today and you’re dealing with
a debt buyer, that was common. Settlements with debt buyers can
change, do a search here on our channel we might have covered
that debt buyer in a video. You can certainly search
more about that debt buyer on our website. Because I cover most debt
buyers on the CNR site. Anyway, if you have questions
about negotiating your debt, your credit card debts, with
Bank of America, even mortgage debt sometime, post them
in the comment area below. And I give dedicated
free feedback. You can also reach me by phone. Call the number on the screen. Press 2, that rings my phone. I look forward to seeing
you on the next video. [MUSIC]