Ameritech Financial Suggests That Income-Driven Repayment Plans May Help Majority of Americans Stop Living Paycheck-to-Paycheck

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Jun 07, 2018, 08:00 ET

ROHNERT PARK, Calif., June 7, 2018 /PRNewswire/ -- Financial freedom can be tricky to achieve, even for those with high earning potentials. A recent report showed that more than three-quarters of Americans are living paycheck-to-paycheck with limited saving capabilities. For millions of Americans, student loans represent a major portion of the debt that may contribute to the paycheck-to-paycheck lifestyle. Ameritech Financial, a document preparation company that helps its clients apply for federal income-driven repayment plans, encourages federal student loan borrowers to look into federal repayment plans to help break the cycle and work toward financial goals.

"It's so stressful to live paycheck-to-paycheck with no ability to save money to break the cycle," said Tom Knickerbocker, executive vice president of Ameritech Financial. "With the right planning and resources, it is possible for people who consider their federal student loans a major obstacle."

According to the report, 71 percent of full-time workers have debt, more than half of whom feel that their debt is unmanageable. Additionally, more than half reported setting aside $100 or less for saving purposes, which would make building an emergency fund extremely difficult if not impossible. Financial experts often recommend having an emergency fund of at least three months of living expenses, though, ideally, they suggest six months.

Student loan borrowers leave college with an average of around $30,000 to $40,000 of debt. Monthly payments can be in the hundreds or more. Borrowers who struggle to make those payments may benefit from a federal income-driven repayment plan (IDR). Such plans base payments on income and family size and can end in forgiveness after 20 to 25 years of enrollment. Many borrowers see a reduction in payment through IDR enrollment, which can help them set money aside or pay down other debt.

"Getting into the habit of saving money can be hard, and it might take a lifestyle change," said Knickerbocker. "Enrolling in an IDR for federal student loans might be an effective first step for many borrowers. At Ameritech Financial, we help borrowers understand IDRs in the context of their financial situation and we help them with the application paperwork as well."

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.

Each Ameritech Financial telephone representative 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.

Ameritech Financial Newsroom

Contact

To learn more about Ameritech Financial, please contact:

Ameritech Financial
5789 State Farm Drive #265
Rohnert Park, CA 94928
1-800-792-8621
[email protected]

Related Images

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Living Paycheck-to-Paycheck with Student Loans
Credit: Serenethos/Bigstock

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SOURCE Ameritech Financial