Debt Consolidation Solution From Bank Of America: CleanSweep Line of Credit

Contributed by mm | October 17, 2006 2:30 AM PST

Below is a quick summary of BofA's CleanSweep line of credit product for people in need of debt consolidation. Note the product is tricky in several aspects:

- Variable APR can hit as high as 25.49% based on creditworthiness.
- The bank charges you 3% transaction fee each time you need an advance.
- Most importanly, after every advance, the bank will restart your payment term again (and payment term can go as long as 72 months).

Yes, Bank of America does not really want you to pay off the loan :-)

From MBNA:

- Up to $25,000* to help pay off high-interest debts**
- Rates as low as 9.49% variable APR***
- No collateral
- No pre-payment penalties
- No annual fee
- Decision in as little as 15 minutes
- Funds can be deposited directly into your personal bank account.
- Build a re-accessible cash reserve as you pay down your balance. For each additional advance we will restart your repayment term and recalculate your monthly payment amount.

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