Table of Contents
- American Consumer Credit Counseling provides free and paid services to help consumers manage insecure debt
- ACCC offers general financial advice and specialized counseling around items like housing, student loans, and bankruptcy
- ACCC provides personalized debt management plans or DMPs at a cost
- Costs and fees vary depending on your financial circumstances
- You can receive service from ACCC by phone or online in all 50 states
Getting a handle on your consumer debt can feel like a Herculean feat. Fortunately, there are several accredited consumer credit counseling services available you might use to help balance your budget and create a comprehensive debt management plan.
The nonprofit American Consumer Credit Counseling (ACCC) provides such services providing complimentary as well as paid plans to help consumers tackle unsecured debt. We’ll take an honest look at their offerings below.
What Is American Consumer Credit Counseling?
American Consumer Credit Counseling (ACCC) is an established non-profit organization that offers financial education, bankruptcy counseling, housing counseling, and debt management services. Founded in 1991, this organization offers credit counseling by phone or online in all 50 states.
There are several brick-and-mortar locations for in-person counseling, but these tend to be limited to a select number of states, like Massachusetts.
The ACCC provides several services to help individuals tackle insecure debt, such as:
- General Financial Guidance and Counseling: ACCC provides general budgetary guidance surrounding personal finances. Anyone within the 50 states can obtain a free session with a credit counselor to go over their current financial status and plan for the future.
- Housing Counseling: Connect with a credit counselor to avoid foreclosure or learn the basics of home buying. This service can range from free to $175 depending on your situation.
- Student Loan Counseling: ACCC can work with current or past students to asses loan repayment options and potentially negotiate with their issuer. Service costs can range from free to $199.
- Bankruptcy Counseling: Two sessions, a pre-bankruptcy consultation, and a post-bankruptcy consultation are required by law to execute the process. The ACCC can provide this service, with the pre-filing priced at $49 and post-filing at $39.
- Debt Management Plan (DMP): The ACCC can help you build a custom debt management plan, heavily focused around debt consolidation for credit card debt. This comes with a start-up fee of $39 and a monthly maintenance fee capped at $70. Prices vary based on your individual situation or waived fees due to financial instability.
It’s worth noting that the ACCC does not assist consumers with secured debts, or money owed tied to a physical asset as collateral, like a house or car. Some of ACCC’s services are complimentary, while others come with monthly maintenance fees and start-up costs. However, since American Consumer Credit Counseling acts as a nonprofit, these services are generally fairly affordable or come at a below-market price for consumers.
Is American Consumer Credit Counseling Legitamate?
American Consumer Credit Counseling is a member of the member of the NFCC. The non-profit is accredited by the Better Business Bureau with a 4.97/5 star review rating. As an NFCC member, the organization has been evaluated by the Council on Accreditation and is legally permitted to operate in all 50 states.
That being said, it’s always a good idea to evaluate the pros and cons of the service based on your current financial situation:
Pros And Cons Of American Consumer Counseling
PROS:
- Anyone can receive a complimentary financial consultation
- High BBB rating, with remote operation across all 50 states
- Variety of services for a wide range of debt and loans
- ACCC may be able to negotiate lower interest rates
- Fairly affordable credit counseling services
- Receive financial evaluation from a professional credit counselor
CONS:
- Only works with insecure debts
- Some of the ACCC’s services come at a cost
- Creditors can choose not to work within your crafted DMP
- Any debt management plan can take several years to execute, those this is true across any credit counseling program
How Much Does American Consumer Credit Counseling Cost?
The cost of American Consumer Credit Counseling varies greatly depending on the provided services and your general financial situation. This table showcases the general costs you can expect from utilizing ACCC, separated by general service category:
| Expected Cost | Service |
|---|---|
| The initial session is free | General Financial Counsel |
| Costs can range from $0 to $199 | Student Loan Counsel |
| Costs can range from $0 to $175 | Housing Counsel |
| Costs are separated into the two mandatory sessions required by U.S. law. Pre-filing cost is set to $49 and pre-discharge is at $39, totaling to $88 | Bankruptcy Counsel |
| Monthly fees range from $7 to $70. Initial start-up fee of $39. | Debt Management Plans |
Keep in mind that the ACCC costs are subject to vary based on your financial standing. Certain fees may be waived or discounted, to be determined on a case-by-case basis.
Alternatives To American Consumer Credit Counseling
Keep in mind that the American Consumer Credit Counseling agency isn’t the only option if you find yourself struggling with credit card or loan debt. Here are a couple of other potential services to consider:
- Other Credit Counseling Agencies: There are multiple credit counseling agencies outside ACCC. For instance, we’ve reviewed Accredited Debt Relief as well as Money Management International. Be sure to take stock of your options before siding with one credit counseling agency.
- Debt Consolidation Loans: You may consider consolidating your debt to a single, lower-interest loan to help you pay off your interest more efficiently, depending on your financial circumstances.
- Creditor Negotiation: You might be able to negotiate with your creditors directly by calling them up and asking for a discounted interest rate. Certain debt relief and credit counseling services can do this for you, but it typically comes with a cost.
- Financial Coaching or Self-Education: If you’re looking for more general financial education, you might not need the scope of a professional credit counselor. You can receive coaching from other financial professionals like a certified financial planner, or learn personal finance using a bevy of online resources.
Closing Thoughts
American Consumer Credit Counseling may be an excellent option for consumers looking to effectively conquer their consumer debt. The organization provides a range of complimentary and paid services at accessible price points, with a promising Better Business Bureau rating of 4 out of 5 stars.
While there are worthy alternatives to this credit counseling service, ACCC is certainly worth considering. In any case, taking the first step towards tackling your consumer debt is bound to put you on a prodcutive path to a brighter financial future.
Frequently Asked Questions (FAQs)
Is American Consumer Credit Counseling Legit?
Yes, American Consumer Credit Counseling is an accredited nonprofit organization and a member of the NFCC. They can help you manage your unsecured debt and offer financial counseling services.
What Is Credit Counseling?
Credit counseling is a service designed to help you manage your finances, specifically tailored to helping consumers get out of debt. These professionals can provide you with advice, resources, and might be able to help you negotiate lower interest rates.
How Much Does American Consumer Credit Counseling Charge?
You can access American Consumer Credit Counseling’s select budget consultations for free. Specialized debt management programs come with an initial cost of $39 along with a monthly maintenance fee of $7.
What Kind Of Debt Does American Consumer Credit Counseling Help With?
American Consumer Credit Counseling only helps with unsecured debt, or those not backed by collateral like a house, car, or other tangible asset. The counseling and debt management programs are designed to help you slash consumer debt faster.
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