Available in nearly every state, Americor offers debt settlement plans for clients who owe at least $10,000 in unsecured debt.
In return for a settlement fee of 15% to 25% of your enrolled debt, it will negotiate with your creditors to accept less than your original balance. Because it only charges a settlement fee if it succeeds in making a deal, we named Americor one of our top debt settlement companies
In addition to debt relief, Americor also offers a debt consolidation loan with terms of 12 to 60 months.
Americor Debt Relief
Minimum debt
$10,000
Fees
Settlement fee is 15% to 25%, depending on the amount enrolled and the state you live in.
Availability
Available nationwide except in Colorado, Oregon and West Virginia
Highlights
Americor also offers debt consolidation loans for up to $48,000 with terms of 12 to 60 months.
Read our Americor Debt Relief review.
Pros
- Low minimum debt requirement
- Available in nearly every state
- Offers debt consolidation loans
Cons
- Maintenance fees not disclosed
- High debt minimum requirement
How does Americor work?
Americor assists consumers with at least $10,000 in unsecured debt, like credit card bills and personal loans, negotiate settlements with their creditors.
It operates in every state but Colorado, Oregon and West Virginia.
Like most debt settlement companies, Americor instructs clients to stop making payments to their creditors and instead deposit funds into an escrow account. Once a settlement has been reached, the money in the account is used to pay the adjusted balance and Americor's settlement fee, which can be as much as 25% of the enrolled debt.
It also facilitates a debt consolidation loan through online lender Credit9 of up to $45,000, with loan terms of between 12 and 60 months.
On average, clients receive their first settlement within three to six months of enrolling in a program, but it can take 24 to 48 months to settle with all creditors. Americor claims customers save an average of 45% of their enrolled debt.
Americor guarantees no fees are charged unless it lowers your total enrolled debt.
How much does Americor cost?
Americor's fee ranges from 15% to 25% of the debt you enroll in its settlement service. If your enrolled debt is $20,000, your fee could range from $2,800 to $5,800.
This fee is a portion of the amount you'll need to deposit in an escrow account while Americor negotiates with your creditors.
There may be additional charges to open and maintain the escrow account.
Pros and cons of Americor
Before you enroll in Americor's debt settlement program, it's important to consider the benefits and downsides.
Pros
- You can withdraw from the program at any time without penalty
- A+ rating from the Better Business Bureau
- Also offers $48,000 debt consolidation loan option
- You don't pay Americor a fee if it is unable to settle your debts
Cons
- Program not available in Colorado, Oregon or West Virginia
- You must have at least $10,000 in unsecured debt to qualify
How does Americor compare?
Americor vs. National Debt Relief
Americor and National Debt Relief are both popular debt settlement companies that work with unsecured debt relief and charge 15% to 25% of the total enrolled debt for their services. (The actual fee can depend on the state you live in.)
National Debt Relief
Cost
15% to 25% of enrolled debt
Highlights
National Debt Relief has been in business since 2009, and has helped hundreds of thousands of people get out of debt. While National Debt Relief won't be a fit for people who owe less than $10,000, it can be a good option for those with large debts.
App available
No
Read our National Debt Relief review
Clients must have at least $10,000 in debt to qualify for Americor's debt settlement plan, which takes an average of 24 to 48 months to complete. National Debt Relief, on the other hand. has only a $7,500 debt minimum and claims the average time to finish its program is 34 months.
Both companies operate in most U.S. states.
Americor vs. Pacific Debt Relief
Pacific Debt Relief is another highly rated debt settlement company that works with unsecured debt, collections and repossessions.
Pacific Debt Relief
Minimum debt
$10,000
Fees
Settlement fee is between 15% and 25% of enrolled debt.
Availability
Available nationwide except in Oregon
Highlights
Pacific Debt Relief's fee is based on the percentage of settled debt, rather than the amount you started the program with.
Like Americor, it only accepts clients with at least $10,000 in unsecured debt and charges 15% to 25% of the total enrolled debt as a settlement fee.
Pacific Debt Relief only operates in 30 states, however.
Is Americor legit?
Founded by Benny Ganatra in 2008, Americor is a member of the American Fair Credit Council and boasts an A+ rating from the Better Business Bureau.
It claims to have helped over 200,000 individuals settle more than $2 billion in debt since its founding in 2008.
How to sign up with Americor
To get started with Americor, you'll need at least $7,500 in unsecured debt.
You can apply online or call 888-211-2660 to be connected with a certified debt consultant who can assess your situation.
Americor debt relief FAQs
What's the difference between debt settlement and debt consolidation?
Debt consolidation is the process of taking on a new loan to pay off the balances on multiple existing debts. Debt settlement does not involve getting a new loan. Instead, it involves a settlement company negotiating a lower balance on your behalf. You'll be responsible for paying back this new balance.
What are the risks of debt settlement?
Your credit score can be negatively impacted when you begin the debt settlement process. If you aren't looking to open a new line of credit or make a big purchase (like a home or car) then this shouldn't be too much of a problem. Your credit score will increase again as you pay off your settled balance.
Does debt settlement affect your taxes?
According to Experian, your settled debts will be taxed as ordinary income.
Who qualifies for debt settlement?
If you're having a difficult time paying off significant debt, you can consider pursuing a debt settlement program. However, debt settlement companies may have their own requirements for the minimum amount of debt you need in order to qualify for their programs.
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of debt settlement products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
