It’s tough to imagine a man who never has to take out a loan or use a credit card. Those are some handy financial instruments that can help us build a better future and achieve our goals in life. But sometimes, things get out of control because it’s just so easy to swipe those little plastic thingies at the register. Suddenly, it becomes a nightmare where you can no longer manage your finances, and your life becomes extremely stressful. But when life closes one door, it sometimes opens a window. One of the potential windows that can be your way out of being buried in debt is Americor. And what is Americor, and how does it work? The following text will give you the answer to that question and possibly all your financial troubles.
What is Americor?
Americor is a debt relief company that employs various experts that work together to help people repay their debts. They are very skillful negotiators and financial consultants representing clients in discussions with their creditors. In a very high percentage of cases, they manage to reduce their client’s overall debt, make a successful repayment plan, and generally offer a resolution for their client’s financial troubles. The approach to every person that seeks Americor’s help is individual, but here are four primary services this company offers:
- Debt settlement
- Debt consolidation loans
- Debt Management Plan
- Bankruptcy counseling
Here’s a bit about each of them, so you can explore and have them in mind if ever the need arises.
Debt Settlement
At some point in your dept repaying process, you may realize that you took a bigger bite than you can swallow. One option to solve this issue may be debt settlement. Essentially, it means repaying part of the debt you own as a lump sum instead of making monthly payments, but with the benefit of having the rest of your debt written off. The creditors don’t have to agree to this, of course. You’re best at getting the debt settlement by enlisting an expert to do all the negotiation for you.
That is where Americor comes in. They will use all their skills in communication with the creditors who have respect for them and are willing to negotiate. They take over solving this issue for you so that you can focus on your other problems. That is especially useful if you are in the process of making colossal changes, such as moving away. As the experts for relocation and storage from City Movers advise their clients, it is always best to let professionals handle your affairs if you have too much on your plate. That way, you avoid making very costly mistakes. However, debt settlement doesn’t work for everyone, as it can negatively affect one’s credit score. But there are certain benefits to it.
Advantages of debt settlement
Debt settlement, for one thing, brings relief from the debt ruining your health by causing so much stress in your life. Also, it can help businesses avoid bankruptcy. Some solutions related to debt settlement involve accelerating repayment with the benefit of reducing interest rates. Finally, there’s even a chance of getting total debt forgiveness. That is virtually impossible without an experienced professional to walk you through the process and do most of the heavy lifting. Americor can provide such a person as your debt settlement attorney for a certain fee.
Debt Consolidation Loans
Another service Americor offers its clients are Debt consolidation loans. This option is for those with a myriad of loans and credit card debts struggling to keep up. Instead of making many smaller payments, each with its interest rate, you could have them all reduced to a single debt. That naturally implies a single interest rate will make your overall debt smaller than the sum you had to repay before. It is an excellent choice for many. However, not everyone is eligible for debt consolidation. Only people that meet the following requirements can qualify for it:
- Their income needs to be 50% higher than their overall debt.
- The income is sufficient to allow for monthly payments of all the bills.
- Credit rating must be such to allow for the 0% Credit Card or Low-interest consolidation loan.
- The well-drawn spending plan will prevent future debt issues.
Debt Management Plan
Credit card debts can mount so much that they cast a dark shadow over your life. People that suffer from such issues are good candidates for a Debt Management Plan. Like Debt Consolidation Loans, Debt Management Plans combine several debts with a single one with lower interest. That way, you can get back on your feet when it comes to finances in a relatively short time. But as all of the debt relief options have advantages and disadvantages, so does this one. You should thoroughly inspect them all and make a decision that suits your needs best.
Pros of the debt management plan
Making one monthly payment to the counseling company is enough to deal with all your debts, which makes things much more straightforward. The plan is devised in such a way as to provide that you are debt free in 3-5 years which is an excellent prospect. Finally, the interest rates on the cards you are repaying will be lower than before. Not to mention the apparent psychological benefit of knowing you finally have a solution to the problem that has been bothering you for some time.
Cons of the debt management plan
The biggest disadvantage of this plan is that you will no longer be able to reap the benefits of credit cards. However, some consider this an advantage as you will not be able to fall back to the old ways that brought financial problems upon you in the first place. With a few lifestyle changes and intelligent choices, you can learn to live with this restriction. For example, buy clothes at sales instead of when they are part of a new collection. If you are relocating, do this in the off-season when it is much cheaper. Choose to spend less if there is an option for it.
Also, you’ll have to be disciplined with monthly payments because missing as few as one can make a huge problem. Another con of a debt management plan is that it is not for everyone. It is designed with credit card debts in mind, excluding tax, medical and student loans.
Bankruptcy Counseling
Not always can the debt be repaid. In some cases, bankruptcy is the only option. But it is a complex procedure with several different possible approaches. It’s best to have a financial advisor guide you through it. Americor can provide a professional that will counsel you and find the best way to proceed in that situation.
Types of Bankruptcy
There are three types of bankruptcy:
- Chapter 7 bankruptcy. This one allows individuals and businesses that file for it to have most types of debt written off. Qualifying for it requires passing a means test, among other criteria.
- Chapter 11 bankruptcy. With this type of bankruptcy, a business can continue with its operations while its debts go through restructuring to be paid off over time.
- Chapter 13 bankruptcy. The benefit of this type of bankruptcy is that the filers keep all or part of their property. A payment plan must repay the reorganized debt, and the court monitors the process. The requirements for qualifying for this option include passing a means test and having a steady income.
Bankruptcy costs
Contrary to what some people think, bankruptcy is costly. There are three types of fees one must pay in the course of it. The first one is the attorney fee. That depends on your location, the actual attorneys and how much they usually charge, and whether they are willing to offer you a price by your income. The second type of fee is the filing fee which differs from state to state with the possibility of not having to pay it if you are eligible. Finally, the credit counseling course is a requirement you will have to meet. The price is somewhere between 25$ and 50$ per person.
Bottom line on what is Americor and how does it work
So, what is Americor, and how does it work in short? It is a solution. Whether it is the right solution for you is hard to say. But one thing is for sure. Having a debt that has a crippling effect on you is unacceptable and should not be allowed to remain that way. Americor has helped many regain control over their finances, but it has its limits and downsides you must become familiar with. What matters is that you understand your situation, make informed decisions, and stick to whatever solution you find best for you. Only then will you be financially free, which all of us should strive for.
