ROHNERT PARK, Calif., March 26, 2018 /PRNewswire/ -- A recent report showed that about 80 percent of Americans carry some form of debt. While mortgage and student loan debt are the two highest forms of debt in households, Americans also deal with credit card debt, auto loans and medical debt. Debt can be a powerful factor in individuals' lives but does not have to be a barrier in life. Ameritech Financial, a document preparation company that helps student loan borrowers understand and apply for federal repayment plans, reminds borrowers that they can be financially successful even with debt.
"Student loans may feel so burdensome to some borrowers that it's hard not to see them as a bad thing," said Tom Knickerbocker, executive vice president of Ameritech Financial. "But successful repayment can help to not hinder financial success."
Debt is not necessarily bad, though it may feel like nothing more than a burden. Debt can sometimes help build wealth. For example, borrowing to buy a house may be a form of wealth building because of the combination of interest deductions and the fact that houses often increase in value over time to at least keep up with inflation, so borrowers who sell the house later or rent it out will likely make a profit if they have owned the property for a long stretch. Similarly, student debt is often seen as good debt because it was used to boost earning potential, as long as borrowers completed their degree program. However, debt needs to be handled correctly in order to work in borrowers' favor.
Financial success with debt requires borrowers to stay current on those debt payments and not fall behind. Falling behind can negatively impact credit, which can make it difficult to take out new lines of credit or refinance current lines for better terms. Therefore, it's important to make debt payments on time and in full. However, default rates for student loan borrowers have shown that many have trouble making payments.
Borrowers whose student loans seem to be barriers to financial success may consider looking into federal repayment plan options. Income-driven repayment plans, in particular, may be valuable resources for borrowers who can't afford their loan payments. Such plans calculate payments relative to income and family size, which can potentially reduce payments to as little as zero dollars for certain borrowers, and can end in forgiveness after 20 to 25 years in the program.
"Whether or not student debt is considered good debt, it's important to keep up with repayment," said Knickerbocker. "IDRs help a lot of people do that, especially when income levels are low. At Ameritech Financial, we help borrowers who may be struggling with their student loan payments apply for IDRs. We hope any financial freedom they experience from reduced payments allows them to build wealth or at least improve their whole financial situation."
About Ameritech Financial
Ameritech Financial is a private company located in Rohnert Park, California. Ameritech Financial has already helped thousands of consumers with financial analysis and student loan document preparation to apply for federal student loan repayment programs offered through the Department of Education.
Ameritech Financial is a member of the Association for Student Loan Relief (AFSLR), and each representative on the phone has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).
Ameritech Financial prides itself on its exceptional customer service.
To learn more about Ameritech Financial, please contact:
5789 State Farm Drive #265
Rohnert Park, CA 94928
SOURCE Ameritech Financial