What is Delinquent Debt?

Written By Melissa Cook
Dec 5, 2022
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Delinquent debt is a term used to describe debt that has not been paid on time, or even at all. There are many different types of delinquent debts, including consumer debts like credit card balances and mortgage payments, as well as commercial debts like unpaid invoices from customers and overdue loans. Any type of debt can become delinquent if the borrower misses a payment deadline or fails to make the full repayment amount due for any reason.

How can delinquent debt hurt your finances?

Delinquent debt can harm your finances in several ways. First, it may damage your credit score and make it difficult for you to get future loans or lines of credit. Additionally, creditors may use tough measures like garnishing wages or sending collection agents after you to recoup their losses. Finally, late or skipped payments can have a big impact on your financial wellbeing by increasing the total amount you owe over time.

What is a delinquent federal debt?

A delinquent federal debt is any type of unpaid obligation owed to the federal government. This can include student loans, tax debts, or other types of liabilities incurred through participation in government programs. Delinquent federal debts are typically subject to aggressive collection tactics like wage garnishment or asset seizure, which can have a significant impact on your finances. Additionally, a delinquent debt may result in negative impacts on your credit score and make it more difficult to get future funding from lenders. If you find yourself struggling with a delinquent federal debt, there are options available for getting help and resolving your situation. For example, you may be able to work with a debt relief agency or engage in some form of debt negotiation to reach an agreement with your creditors that is more manageable for you. However, it is important to proceed with caution when dealing with a delinquent federal debt, as there are many unscrupulous companies and individuals who may try to take advantage of your situation. It is always best to research your options carefully and seek help from reputable sources if you need assistance resolving a debt problem.

 

If you are struggling to make payments on delinquent debt, there are several steps that you can take to address the problem. First, consider contacting your creditors directly to request more time or payment arrangements that better fit your budget. You may also want to explore debt consolidation options like balance transfers and personal loans to reduce interest rates and other fees. Contact an Americor professional to learn more about debt consolidation. Finally, remember that it is always best to seek professional help from a certified debt counselor if you think you may need long-term assistance with your finances. With these strategies in place, you should be able to manage delinquent debts and avoid any further trouble down the road.

 

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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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