Written By Melissa Cook
Mar 10, 2023
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In financial terms, the principal refers to the initial amount of money that is borrowed or invested, upon which interest is calculated or earned. 

It is the original amount of money involved in a financial transaction, such as a loan or investment, and it represents the basis for all subsequent financial activity.

In the context of loans, the principal is the amount borrowed from a lender, which is then repaid with interest over a specified period of time. 

For example, if you take out a $10,000 loan, the principal amount is $10,000. The interest that you pay on the loan is calculated based on the principal amount, so the higher the principal, the more interest you will have to pay.

Similarly, in investments, the principal is the amount of money that is initially invested by an individual or a company. The return on the investment, which may be in the form of interest, dividends, or capital gains, is calculated based on the principal amount. 

For example, if you invest $10,000 in a stock that returns a 5% dividend, the dividend amount will be calculated based on the principal amount of $10,000.

The principal amount is an important factor to consider when making financial decisions because it determines the amount of interest or returns that will be earned or paid. It also affects the total cost of borrowing, as higher principal amounts typically result in higher interest charges. 

Therefore, it is essential to carefully evaluate the principal amount when making financial decisions and to ensure that it aligns with your overall financial goals and objectives.


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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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