debt services fund

Is Bank of Americas personal loan just another credit card?

I was looking at Bank of Americas debt consolidation or personal loan it says it is funded by FIA card services and their is a 3 percent fee for the transcaction so is this just another credit card?

It sure sounds like it. Transaction fees (3%) are assessed for transfering your revolving credit card balance to another card. This is to prevent people from constantly boucing their credit card debt back and forth from month to month. It’s also an easy way for the banks to make quick money too.

Whether it is a credit card or an unsecured personal loan, it’s the interest rate that you should look at. Often, they try selling you on the MONTHLY PAYMENTS not the rate, so watch out for that. It only makes sense to transfer debt or consolidate debt if you will be getting a lower interst rate.

The problem with debt consolidations is that most people who enroll in this program end up charging everthing on their credit cards again so in the end they owing twice as much (the loan and new credit card debt).