How U.S. household debt increased by $1 trillion in 2021, and how to decrease it

Written By Naazma Garcia
Feb 15, 2022

Inflation levels are hitting historic heights day by day, and the consequences have already started to show. According to the New York Fed’s quarterly report, U.S. household debt grew by a whopping $1 trillion, which is the highest increase since 2007, right before the housing bubble. If you’re one of the contributors, read on to find out all you need to know to potentially ease your situation.

The reasons behind the increase 

As mentioned before, historical inflation heights likely played a major role in the uncanny increase. According to a recent publication by Reuters, the raise was amplified by the climbing prices of housing and consumer goods, which many individuals could not afford as out-of-pocket expenses anymore. Auto loans became one of the most significant types of debt, with a balance that has been constantly increasing since the 2008 crisis. It is worth mentioning that while some households, typically the ones with above-average income, seem to be handling the escalated burden relatively well, the majority will struggle to keep up with the increased monthly costs. 

The consequences 

As a result, many American families are put under pressure. Researchers say that while some of them have financial reserves that can win them a little time, others don’t have such privilege and must act in the near future to avoid the risk of losing their valuables.

The solution 

For many, there are two options left: finding a way to increase income or searching for a solution to reduce outstanding debt. The first choice is unfortunately not as easy as it sounds for the majority who struggle with this issue, as employment opportunities and paycheck boosts are oftentimes limited across numerous states. On the other hand, the second option only depends on the individual’s willingness to find a solution. For instance, a popular, proven way of debt relief is debt settlement, which could be a viable option for many. The process usually starts with an individual reaching out to one of the debt settlement companies after having evaluated the solutions they offer. Then, if the co has a proven track record of high success rate, it will delegate a professional who received special training and education in the field and who truly understands the ins-and-outs of the debt settlement process. During an initial consultation, the client presents the situation at hand, including her/his full outstanding balance, the types of debts, and the terms of the debts. Then, with the personal consultant’s guidance, the information is evaluated, followed by the development of tailored potential solutions. After this relatively fast process is completed, the only thing left to do from the client’s side is to approve the consultant’s suggestion as for which choice might be the most optimal in the given context. Finally, the company will also do the heavy-lifting for you and negotiate a debt settlement with your creditors that could potentially turn out to be a huge financial weight lifted off your shoulder. 

Take the next steps 

At Americor, we understand your struggles, and for that reason, we made it our mission to ease the financial burden of those in need. If you liked what you read above, we have great news for you, as that description was actually walking you through our standard protocol. Take the next steps, reach out, and be joined by one of our professional consultants, with whom you will be able to clearly see all your opportunities; who knows, the solution that gets you out of trouble might be closer than you think. 

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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.

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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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