American Consumer Credit Counseling Review 2024 (2024)

Consumer credit counseling services are designed to help people get a better handle on their debt. These companies offer a variety of solutions, including credit and debt counseling, debt management plans (DMPs), or debt consolidation loans.

American Consumer Credit Counseling (ACCC) is a nonprofit organization that specializes in credit counseling and debt consolidation. If you’re looking for help with debt, American Consumer Credit Counseling is one option you might consider.

What Is American Consumer Credit Counseling?

Established in 1991, American Consumer Credit Counseling is a leader in the credit counseling industry. The company’s mission is to help people take control of their financial lives and become debt-free. ACCC offers several services, including:

• Credit counseling
• Debt consolidation
• Debt management
• Budget counseling
• Bankruptcy counseling
• Housing counseling
• Student loan counseling
• Financial education

American Consumer Credit Counseling is a member of the National Foundation for Credit Counseling (NFCC) and provides services in all 50 states and Washington, D.C.

How Does American Consumer Credit Counseling Work?

American Consumer Credit Counseling helps people find solutions for their debt problems. Two of the primary ways ACCC does that are credit counseling and debt consolidation.

Credit counseling is designed to help you understand your debt and how to approach repayment. When you sign up for credit counseling with ACCC, you’re assigned to a certified credit counselor. That credit counselor will:

• Review your financial situation
• Help you analyze your income, assets and expenses
• Provide you with personalized options for tackling your debt based on your financial goals

For example, your counselor may suggest a debt management plan to consolidate unsecured debts such as credit cards, medical bills, signature loans or collection accounts. When you enroll in a debt management plan with American Consumer Credit Counseling, you’ll make one payment every month to ACCC. Your counselor then distributes the money to your creditors on your behalf.

American Consumer Credit Counseling will also attempt to negotiate interest rate reductions and fee waivers on your behalf. A debt management plan can streamline your monthly debt payments while potentially saving you money.

ACCC’s form of debt consolidation is not the same as a debt consolidation loan. With a debt consolidation loan, you borrow a lump sum of money and use it to pay off your debts. You then repay the loan with interest.

Debt consolidation through American Consumer Credit Counseling is not a loan. Instead, you’re restructuring your debt payments so you can get out of debt faster. ACCC’s debt management services are typically designed to get you out of debt within three to five years.

How To Sign Up for American Consumer Credit Counseling

If you’re interested in using ACCC’s services, you can schedule a free consultation online or over the phone by calling 800-769-3571. You’ll need to provide your:

• Name
• Email address
• State and ZIP code
• Phone number

You’ll also need to tell American Consumer Credit Counseling what services you’re interested in and how much debt you owe.

Before your credit counseling session, you’ll want to organize a few important financial documents. The counselor may ask for copies of recent bills, pay stubs, credit card statements, and any correspondence with creditors or debt collectors. The counselor will use that information to suggest options for dealing with your debt.

Once the credit counselor offers their suggestions, you can decide which one you’d like to pursue, if any. If you choose a debt management plan, for instance, the credit counselor will work out the amount you’ll need to pay each month and approach your creditors to enroll them in the plan. Once they’re enrolled, you’d just need to make your one monthly payment as scheduled.

Pros and Cons of American Consumer Credit Counseling

Credit counseling can help you to take control of your finances and debt, but one company might suit your needs better than another. Here’s a closer look at the advantages and disadvantages of ACCC.

Pros

• Free initial credit counseling and budget consultation
• Consolidate multiple unsecured debts through a debt management plan
• Potentially lower your interest rates and payments while reducing fees
• Potentially pay off debt faster
• Put an end to collection calls

Cons

• Debt management plans only work if you’re committed to making the payments
• Secured debts cannot be added to a debt management plan
• Creditors may not be willing to participate in the plan
• Debt management plans may take several years to complete
• ACCC charges fees for certain services

While the initial consultation is free, American Consumer Credit Counseling does charge fees for its debt management program if you decide to enroll.

There’s an initial enrollment fee of $39and a monthly maintenance fee of $7 per account. Full program costs vary, but the maximum account fee is $70 per month, which adds up to $840 per year. ACCC may reduce or waive the fees, but it’s important to understand your costs for the program upfront.

How Will American Consumer Credit Counseling Affect My Credit?

Scheduling an initial credit counseling consultation won’t affect your credit. You may, however, lose credit score points if you enter into the debt management program.

When you enroll, American Consumer Credit Counseling will advise you to close your open unsecured credit lines. The idea is that if you don’t have credit lines open, you can’t create new debt.

But closing credit lines can hurt your credit score, because you’ll have less credit at your disposal, which can increase your credit utilization ratio. That ratio measures how much of your available credit limit you’re using, and it’s the second-most important factor in FICO credit scoring. Closing accounts also shortens the average length of your credit history, which may negatively impact your credit.

But making your program payments on time can help you regain lost points as you reduce your balances. Positive payment history carries the most weight for credit scoring.

Your creditors may place a note on your credit file that says you’re enrolled in a credit counseling plan. That note won’t affect your credit score, but individual creditors may view it as a negative. The note usually goes away when you complete the plan.

Is American Consumer Credit Counseling Legit?

American Consumer Credit Counseling is a legitimate nonprofit credit counseling organization. ACCC is accredited with the Better Business Bureau (BBB) and has a 4.93-star rating. As of May 2023, the company does not have a Trustpilot rating.

As mentioned, American Consumer Credit Counseling is a member of the NFCC. NFCC members are required to be accredited by the Council on Accreditation (COA). American Consumer Credit Counseling is registered, licensed and bonded to legally operate in all 50 states and Washington, D.C.

American Consumer Credit Counseling Reviews

American Consumer Credit Counseling has largely earned positive reviews from trusted sites, including the Better Business Bureau. Consumers who use ACCC most often point out:

• Excellent customer service
• Convenience and ease of use
• Professionalism and transparency

Reviewers also acknowledged how helpful American Consumer Credit Counseling was in helping them create a workable debt repayment plan.

There were two complaints registered with the BBB. One centered on lengthy phone wait times while the other involved confusion over the services that were to be provided.

Bottom Line

American Consumer Credit Counseling could be worth looking into if you’re trying to get out of debt and not making much progress. Overall, the company has a solid reputation and a demonstrated track record of helping people manage their debt. Just be sure you understand what fees you might pay to use the company’s services.

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