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    balance liquidation program chase


    We all know that credit card debt is a common way for people to pay their bills and meet their daily expenses when they are in financial trouble. This is when credit card debt becomes a problem. Banks have been offering “balance liquidation programs” to help debtors pay off their credit cards without having to file bankruptcy in the past few years. Are these legitimate plans?

    1. A bank balance liquidation plan (BLP), is a plan that allows debtors to repay their balances in a set amount of time. These plans require that debtors surrender their credit cards and cancel them. The plan prevents any additional charges from accruing on the balance. The BLP caps the interest rate at a specific amount. This can be between 12 percent, 5 percent, or even 0 percent. The interest rate is determined by the bank using its mathematical backroom models of what debtors are able to afford without defaulting.
    3. BLPs are listed on debtors’ credit reports as a closed account and not as delinquent. This is a good thing for debtors long-term, once they have paid down the balance and rebuilt their savings.
    4. A BLP’s duration is set. It can often be up to five years.

    A balance liquidation plan is basically a way for debtors to refinance credit card payments. There are some drawbacks.Because banks have different practices regarding BLPs, it may be more advantageous to consolidate all of your debt and pay it off.It is not always worth the effort to pay for the plan. balance liquidation program chase, The likelihood of losing your income source is high if you have a large amount of debt on your credit card. You could end up in default and lose your income. It may not be worth the effort. A Chapter 7 bankruptcy will remain on your credit report for 10 year and you can file a refile once every eight years. Therefore, a 5-year repayment plan is probably not better than a discharge.

    For those who have small amounts of credit card debt or have recently lost their income source, balance liquidation plans may be a viable option. However, a Chapter 7 bankruptcy would likely be a better long-term choice. balance liquidation program chase.

    Alexander is a freelance columnist, feature writer, reporter, and copywriter focusing on all aspects of health and wellness. Contact:

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