Trying To Get Out Of Debt? Don’t Make These Mistakes

Many of us who believe we are fundamentally frugal and responsible with our money actually have habits that make paying off debts more difficult than it needs to be – even if we’ve already been approved for a debt consolidation. Here are some money management problems that can put your debt relief solutions in jeopardy.

Continue spending just as you did before.

Shopping at the same retail outlets, going to the same restaurants, and maintaining the same lifestyle that got you into debt will short-circuit even the best debt management plan. If you are serious about making the most of your debt management program, you have to make fairly significant expenditure adjustments.

Making your budgeting strategy too severe.

While you need to be careful about outgoing funds, you can’t make your budget so draconian that you can’t reasonably stick to it for the long term. For example, if you enjoy coffee but can’t afford your morning Starbucks, you don’t have to cut out coffee altogether – just find a cheaper, home-brewed version that is comparable in quality.

Closing credit card accounts once they are paid.

Closing off your accounts will not improve your credit – having available credit but not using it will help you gain a higher score over time.

Attempting to resolve your debts alone.

Many people find it embarrassing to ask for assistance with their debts. However, without the proper guidance, you won’t have access to the services and solutions that may make your debt resolution journey shorter and more efficient. A debt consolidation network can help you renegotiate the terms of your loans, making your repayment schedule quicker and more manageable.

Americor Funding: Offering next-generation debt management solutions that help restore credit and peace-of-mind.

Americor Funding has provided responsible debt consolidation strategies that have helped thousands of borrowers repay their loans and get their finances back under their control. If you are unable to manage your debts, contact the professionals at Americor Funding for a consultation today.

Why American Debt has Risen to Extreme Heights

After the Great Recession of 2008, the household debt of the United States has steadily increased, rising to incredible heights even after post-recession economic recovery. While Americans increasingly struggle to meet student loan obligations, often postponing moving out of their parents’ homes and finding employment that does not correspond with their fields of expertise, this is not necessarily the most burdensome form of debt. According to new statistics from the Federal Reserve Bank of New York, the bulk of household debt in the U.S. comes from credit cards.

Why? Why is credit card debt increasing even as the economy becomes stronger and unemployment rates diminish? The reasons are varied and complex, and undoubtedly familiar to most Americans, even those who consider themselves relatively well off. Here are some of the reasons why credit card debt continues to rise.

Increasing cost of living

Extremely high childcare costs, high transportation costs, and high housing costs are surpassing income levels, making it difficult – if not impossible – for some Americans to meet their standard of living without utilizing credit. The cycle is difficult to break, and as dependency on credit increases, the cost of carrying debt skyrockets. American households must pay approximately $900 per year in credit card interest alone, with the interest rate increase raising that average to $920 by the end of 2018.

Medical costs

Emergency medical care – even with insurance coverage – can diminish or even eliminate savings through copays, deductibles and incidental expenses. Very often, patients and their families must turn to credit cards to meet their expenses and supplement lost and reduced income.

Addiction

Drug and alcohol related debt is not unusual, and it is ruinous. Not only does drug and alcohol dependency increase the likelihood of loan default (ignoring bills and spending all income to maintain the habit), the cost of recovery can be devastating.

Underemployment

While the unemployment rate is going down, income isn’t keeping pace with the increased cost of living. Moreover, many of the jobs Americans currently hold are within what is known as the “gig economy,” meaning there is little stability and few – if any – benefits. This underemployment can mean reliance on credit cards in an emergency.

If your credit card debt has become too much for you to manage, the team at Americor Financial offers debt settlement, debt consolidation, and lending plans designed to help borrowers clear their debt obligations responsibly and quickly. For more information about how Americor Funding may help you repair your finances, please visit AmericorFunding.com today.

Can Debt Consolidation Help You Manage Your Finances? Yes – And Here’s How

If you have more than one debt, you may find it difficult to meet your repayment obligation, particularly if your minimum payments are too high for you to comfortably manage. Debt consolidation – combining multiple debts into a single monthly payment – may offer significant relief if you are struggling to meet your financial commitments. Americor Funding offers flexible debt consolidation plans that can help you successfully organize your fiscal situation. Here’s how debt consolidation can help you.

Make one monthly payment.

Losing track of your debts can be ruinous; many borrowers find it difficult to stay current with diverse bills with different due dates. If you forget to make payments, you run the risk of running afoul of creditors and ultimately damaging your credit score.

By consolidating your debts into a single monthly payment, you won’t have an assortment of bills to handle, mitigating some of the stress of debt management.

Reduce your payments.

One of the major benefits of debt consolidation is the reduction in total monthly payments. While the lump sum of the consolidated payment will be larger than any single minimum payment, the overall amount may be significantly lowered.

Lower your interest rate.

If you have high-interest credit cards, you may be able to reduce your interest through debt consolidation. While you should expect some variation between interest rates depending upon the lender, your current credit score, and the length of your loans, you may be able to negotiate a fixed interest rate as low as 9.95%.

To learn about debt management options or apply for a debt consolidation loan, please visit Americor Funding for more information.