Accrued Interest

Written By Minh Tong
Feb 14, 2023
Facebook Share Icon LinkedIn Share Icon

Accrued interest refers to the interest that accumulates on a debt instrument such as a bond, loan or savings account, over a specified period of time. It represents the growth in the value of the debt due to the accumulation of interest over a period of time.

For example, if a bond pays an annual interest rate of 5% and is held for 6 months, the accrued interest would be 2.5% of the bond’s face value. This means that the bondholder is entitled to receive interest income on the debt for the 6 months that the bond has been held.

Accrued interest is important for both the borrower and the lender. For the borrower, it is a cost that increases the amount owed on the loan or bond. For the lender, it is a source of income that increases the return on their investment.

In the bond market, accrued interest is considered a liability for the issuer and an asset for the bondholder. When a bond is bought or sold, the buyer must pay the seller an amount equal to the accrued interest. This is known as the “dirty price” of the bond and includes both the face value of the bond and the accrued interest.

Similarly, in the loan market, accrued interest is considered a liability for the borrower and an asset for the lender. Accrued interest is usually added to the principal amount of the loan and becomes part of the total debt owed by the borrower.

In the case of savings accounts, accrued interest refers to the interest earned on the balance in the account. Banks usually calculate the interest on a daily or monthly basis and credit the account with the accumulated interest at the end of the period.

For more information on the interest rates you are paying on your credit cards or for your debt settlement options, speak with an Americor professional today.


See how Americor can help

Check Your Options

About Americor

Americor provides debt solutions to thousands individuals and families all over the country. We’re a next-generation debt relief company with a proprietary platform designed to help clients get out of debt quickly. Together we’ll develop a strategy for you to enjoy a debt free lifestyle. Learn more about how Americor can help relieve the burdens of debt today.

18200 Von Karman Ave, 6th Floor Irvine, CA 92612
New Clients:
[email protected]
Existing clients:
[email protected]

We provide debt resolution services. Our clients who make all monthly program payments save approximately 40 – 50% of their enrolled debt (average of 43%) upon successful program completion, before program fees. Fees are based on a percentage of your enrolled debt at the time of starting the program and range from 15%-25% of your enrolled debt. Programs range from 20-48 months. Clients must save at least 25% of each debt due to an enrolled creditor before a bona fide settlement offer will be made. On average, clients receive their first settlement within 4-7 months of enrollment and approximately every 3-6 months thereafter from when the prior debt was settled. Not all Clients complete the program. Estimates are based on prior results and may not match your results. We cannot guarantee that your debts will be resolved for a specific amount or percentage or within a specific timeframe. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting, legal advice or credit repair services. Our program is not available in all states; fees may vary by state. Some programs may be offered through The Law Firm of Higbee & Associates d/b/a Advantage Law. The use of debt resolution services will likely adversely affect your credit. You may be subject to collections or lawsuits by creditors or collectors. Your outstanding debt may increase from the accrual of fees and interest. Any amount of debt forgiven by your creditors may be subject to income tax. Clients may withdraw from the program at any time without penalty and receive all funds from their dedicated account, other than funds earned by the company or fees paid to third-party service providers, as may be applicable. Read and understand all program materials prior to enrolling. Certain types of debts are not eligible for enrollment. Some creditors are not eligible for enrollment because they do not negotiate with debt relief companies. To determine the offers you may be eligible for, Americor conducts a “soft credit pull.” This credit pull does not impact your credit score, creditworthiness, or ability to obtain credit from other sources. The soft pull is not a tradeline entry, it does not report against your score and will only take a few minutes.

Americor Funding, LLC (18200 Von Karman Ave, 6th Floor Irvine, CA 92612) is fully accredited by the Better Business Bureau (BBB), the American Fair Credit Council (AFCC), and the International Association of Professional Debt Arbitrators (IAPDA). CA Department of Financial Protection and Innovation (DFPI) License # 603K913.

Copyright © 2022 Americor Funding, LLC dba Americor Financial. All rights reserved