Debt Consolidation: Become Financially Free

Written By Aaron Sarentino
Mar 24, 2022
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Being in debt can be stressful, we understand that. Oftentimes, it comes as the result of factors outside of our control: job loss, unexpected medical bills, divorce, or any other number of things that can wreck your budget and send your finances into a tailspin. 

According to a recent CNBC study, the average millennial has over $25,000 of non-mortgage debt. Credit cards, student loans and perhaps medical bills can weigh down a borrower for years, and with the disruption we have all faced the last two years of the pandemic, many of those in debt (read our article on the U.S. consumer debt) were dealt a bad hand outside of their control. 

Continue reading and check our article on the DSCR formula as well as the formula for debt to equity ratio.

What is Debt Consolidation?

Several strategies can be used to help pay down debt. Sometimes all that is needed is a solid plan, a good monthly budget, and the discipline to stick with it. Sometimes even that is not enough, and you may need some outside help. 

Debt consolidation is when you get approved for a loan to pay off all of your existing debt. This can be a step towards financial security and a debt free life for several different reasons. Debt consolidation is not right for everyone, but in the right circumstances and if used properly, it can be of tremendous help to those seeking to get out of debt. 

Advantages of Getting a Debt Consolidation Loan

One advantage to a debt consolidation loan may be a lower overall interest rate. Credit cards can come with some hefty rates, especially for those who opened the cards when they had no credit history. The interest rate on a consolidation loan may be lower than the rates on some or all of your credit cards. 

A debt consolidation loan may result in raising your credit score, especially after a little time passes. While you may see an initial decrease when your lender checks your credit report and again when you actually borrow the loan, it will likely rise past where it was to begin with after some time. This is because one of the biggest factors in your credit score is your credit utilization rate. Since the balances on your old credit cards will be paid off and hopefully stay that way, your utilization rate should be lower once you make a few payments on your consolidation loan. 

Another advantage of a debt consolidation loan is the simplicity that it brings to your financial picture. You probably have several credit card payments, and perhaps some other bills such as medical bills, that are due throughout the month. With a consolidation loan, all of that can get covered by one single payment every month, making it significantly easier to manage your budget. Learn what is a guarantor.

Getting Approved for a Debt Consolidation Loan

Getting approved for a debt consolidation loan usually requires paying at least the minimum payment on all of your bills and nothing being in default. If you have a fair credit score, you will likely be able to get approved for a very good loan. If you have fallen behind on some of your accounts and are being hounded by debt collectors, you may have to clean that up before getting approved, but help is available, and it can often get fixed fairly quickly with the right strategy. 

If you think you may be a good candidate for a debt consolidation loan or would like to learn more, contact us and speak to one of our representatives to see how we can help you. 

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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
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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.

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