Pros and Cons Explained
Pros
- Affordable fees: American Consumer Credit Counseling charges some of the lowest enrollment and monthly fees among credit counseling agencies. It also offers a sliding scale and may waive fees, allowing anyone to take advantage of the program.
- Excellent success rate: According to ACCC’s 2021 annual report, the average customer paid off their debt in just over three years, with an overall success rate of 70% in shedding all unsecured debts as a part of a debt management plan.
- Stellar ratings and reviews: Thousands of customers have shared their experiences online, and the company has a five-star rating (or close to it) on several rating platforms.
- Works with a wide range of debts: You can only enroll unsecured debt (such as credit card debt) in a debt management plan, but the company can provide guidance and direction for how to handle any other type of debt you might have.
Cons
- No Android mobile app; limited iPhone app: If you have an iPhone, you can download the company’s CreditU mobile app. It’s not used for your debt management plan, but rather as an overall tool to monitor your financial health.
- Somewhat dated website: As of this writing (early 2024), the company’s most recent financial report was put out in 2021.
How American Consumer Credit Counseling Works
American Consumer Credit Counseling’s process works the same as other credit counseling agencies. Rather than providing a one-size-fits-all solution, American Consumer Credit Counseling works with you to understand your entire financial picture and provide custom guidance.
That could include educating you on student loan assistance options, helping you with a deed-in-lieu of foreclosure on your home, or—for many people—entering into a debt management plan (DMP). American Consumer Credit Counseling works with people carrying just about any debt level ($200 minimum), in contrast with some other agencies that require several thousands of dollars before you’re eligible.
If you choose a debt management plan, you’ll be required to close any credit cards included in the plan. American Consumer Credit Counseling will contact your creditors on your behalf and work to negotiate lower interest rates and fee waivers to get you a manageable monthly payment, along with other beneficial actions. This does not include forgiving your debt, however, like with a debt settlement (which can cause long-term credit damage and high tax bills).
With the plan in place, you’ll stop paying your creditors directly. Instead, you’ll send one payment each month to American Consumer Credit Counseling, which will distribute it accordingly until the debts are all paid off. The company has a 70% success rate in helping people pay back all unsecured debt, with the average client taking a little over three years to complete the program.
Accreditations
American Consumer Credit Counseling is accredited by several reputable industry organizations, including:
- National Foundation for Credit Counseling (NFCC)
- Council on Accreditation (COA)
- U.S. Department of Housing and Urban Development (HUD)
It’s also accredited by the Better Business Bureau (BBB), although this accreditation is not based on the company’s credit counseling performance, but rather on general company practices and behavior in relation to the BBB.
How to Enroll With American Consumer Credit Counseling
If you decide American Consumer Credit Counseling is right for you, here’s how to get started.
- Gather your financial details: You’ll need to have exact numbers for your monthly income, expenses, and assets such as savings account balances and home equity. Gather copies of all your recent financial statements and creditor letters.
- Reach out to American Consumer Credit Counseling: Fill out the initial consultation form on its website, or call (800) 769-3571. A credit counselor will schedule a counseling session to go over your financial details and concerns, create a workable budget, and formulate an action plan.
- Decide on a solution: If a debt management plan looks like the right approach, you’ll pay an enrollment fee and your counselor will begin contacting your creditors. They’ll see if your creditors are willing to participate and help modify your debt to make it easier to pay off. If ACCC recommends an alternate route, such as housing counseling, you’ll be steered toward those resources.
- Start making payments: You’ll begin making monthly payments to American Consumer Credit Counseling for any debts enrolled in the program. Keep in touch with your credit counselor to track your progress. Some creditors may only reduce your interest rate after you’ve made at least three payments in your new debt management plan.
Types of Debt Addressed
No matter which type of debt you have, American Consumer Credit Counseling can offer at least some assistance, even if it’s just developing a budget that fits all of your payments or directing you where to go for other help.
If you’re interested in a debt management plan, however, American Consumer Credit Counseling allows you to enroll unsecured debts (which aren’t backed up by any collateral), as opposed to debts like an auto loan or mortgage. Unsecured debts that people commonly enroll include:
- Credit card debt: Balances racked up on credit cards that you’re having trouble managing
- Personal loans: General-purpose unsecured loans, often called “signature loans”
- Medical debt: Unpaid medical bills from previous procedures and doctor’s visits
Counseling Services Offered by American Consumer Credit Counseling
Credit counseling companies are known for offering debt management plans, but that’s not all they offer. True to their name—and especially in American Consumer Credit Counseling’s case—you can find a range of actual financial counseling options.
Initial Consultation
Everyone interested in working with American Consumer Credit Counseling will undergo an initial free consultation over the phone or in person with a credit counselor. They’ll help you develop a realistic budget and assess your debts, which is valuable on its own.
They’ll take this a step further by giving their advice on the best way to deal with your debt, based on your financial situation and ability to repay. This could include a debt management plan or further credit counseling options, such as the following.
Student Loan Counseling
While American Consumer Credit Counseling doesn’t offer any formal programs for navigating student loans, it will advise you on potential options for getting help regardless of whether you have private or federal student loans. This is generally done during your initial consultation.
Tax Debt Counseling
Like student loans, tax debts aren’t usually eligible to be included in a debt management plan from a credit counseling agency. American Consumer Credit Counseling can still offer support and direction for how to deal with any tax debts you have.
Military Member and Veteran Counseling
American Consumer Credit Counseling has counselors available who are trained on financial issues for active-duty servicemembers and veterans. Again, this isn’t a specific, structured program, but ACCC employs counselors who are versed in the special financial avenues that may be available to you as a current or former member of the military.
Housing Counseling
American Consumer Credit Counseling offers several types of housing counseling options, including:
- Homebuyer education self-paced course ($75)
- Reverse mortgage counseling, which is required to take out a reverse mortgage or home equity conversion mortgage (HECM)
- Custom support in navigating your options for preventing foreclosure and eviction if you’re having trouble affording housing payments
Bankruptcy Counseling
If you file for bankruptcy in the U.S., you’ll be required to take a pre-bankruptcy and post-bankruptcy counseling course through an approved agency, like American Consumer Credit Counseling. ACCC charges $49 for pre-bankruptcy counseling and $39 for post-bankruptcy counseling, with sessions lasting 60 to 90 minutes. At the end, you’ll receive a certificate that you can file with the court.
Expected Cost
You won’t pay any fees for your initial consultation and budget counseling. This is a free service. If your counselor recommends a debt management plan, it’s important to know that the company works on a sliding scale, and will waive all fees if you meet the requirements. If not, you can at least take comfort that American Consumer Credit Counseling charges some of the industry's lowest rates.
You’ll pay two types of costs to enroll in American Consumer Credit Counseling’s debt management plan: an initial enrollment fee of $39, followed by monthly fees ranging from $7 to $70. According to the company, the average customer pays $25 per month.
Expected Relief Amount
When it comes to numbers, American Consumer Credit Counseling is refreshingly upfront with the details, although they are slightly stale. In 2021, the company was successful in helping 70% of customers pay off all their unsecured debts, to the average tune of nearly $19,000 spread across five different debts. The average customer—for reference—also lived in a two-person household with a family income of about $53,000 per year, and paid off their debt after 40 months—just over three years.
To accomplish that, American Consumer Credit Counseling relies on negotiating lower interest rates with creditors, reducing certain fees, and bringing delinquent accounts current again. It can’t guarantee the same results for all your debts, but the numbers indicate that most people receive significant debt relief in working with the agency.
Expected Time to Complete the Program
You can usually expect to pay off your debt in four to five years through a debt management plan through American Consumer Credit Counseling.
This is a typical timeline for credit counseling companies. Depending on your income, whether your creditors agree to lower rates, the total amount of debt you enroll in the program, and other factors, it could take more or less time than this.
Additional Services
In addition to the plethora of services noted above, American Consumer Credit Counseling offers a few other beneficial tools:
- CreditU mobile app for iPhone
- Financial calculators
- Abundant educational resources and articles
Client Dashboard
You’ll get access to an online client portal when you begin working with American Consumer Credit Counseling. You can use this portal to see how you’re progressing in your debt management plan, but the company doesn’t provide any other details about how it works.
Customer Service
If you need assistance, American Consumer Credit Counseling offers several ways to get in touch.
| Method | Contact Details | Availability |
|---|---|---|
| Telephone | (800) 769-3571 | Monday–Thursday: 9 a.m.–10:30 p.m. ET Friday: 9 a.m.–8 p.m. ET Saturday: 10 a.m.–6 p.m. ET |
| info@consumercredit.com | 24/7 | |
| X (Formerly Twitter) | @ACCreditCounsel | 24/7 |
| American Consumer Credit Counseling | 24/7 |
Customer Satisfaction and Reviews
One thing’s clear when looking at reports from customers around the internet—ACCC comes highly recommended. American Consumer Credit Counseling has rave reviews and excellent ratings everywhere you look:
- Better Business Bureau: 4.97 stars based on 674 reviews; A+ rating and accredited
- Google: 5.0 stars based on 2,861 reviews
- Yelp: 3.9 stars based on 7 reviews
American Consumer Credit Counseling vs. Apprisen vs. Cambridge Credit Counseling
| American Consumer Credit Counseling | Apprisen | Cambridge Credit Counseling | |
|---|---|---|---|
| Services Offered | Credit counseling, debt management plans, bankruptcy counseling, student loan counseling, housing counseling, tax relief resources | Credit counseling, debt management plans, bankruptcy counseling, and more | Credit counseling, debt management plans, bankruptcy counseling, housing counseling, reverse mortgage counseling, student loan counseling |
| DMP Enrollment Fee | $39 | $0–$45 | Up to $75 |
| DMP Monthly Fee | $7–$70 | $0–$45 | Up to $50 |
| Minimum Debt Required | $200 | $0 | $0 |
| Accreditations | NFCC, COA, HUD, BBB | NFCC, COA, HUD, EOUST | FCAA, NFCC, EOUST, HUD, BBB |
| Year Established | 1991 | 1955 | 1996 |
American Consumer Credit Counseling offers exceptional service at an affordable cost, but doesn’t have the prettiest online interface. If that matters to you, here are some other debt-relief options:
- Best Credit Counseling Companies
- Best Debt Relief Companies
Is Credit Counseling Worth It?
If you’re struggling with debt and can’t resolve it on your own, working with a credit counseling agency is generally worth it for most people. That’s especially true if you don’t have access to a fee-only financial advisor for unbiased advice. Like financial advisors, credit counseling agencies can help you sort through your options, whether that includes a debt management plan or not.
If you’re able to pay off your debt within five years and just need support and guidance from someone to make that happen, a debt management plan from a credit counseling agency can be a powerful tool. Compared with debt settlement, a debt management plan only causes relatively minor credit score damage from closing your credit cards, rather than the wallop you’ll typically get from defaulting on your debt as settlement companies require.
If you're facing overwhelming amounts of debt, however—or debt that’s secured by a house, car, or another asset—then it may be best to consider other options for debt relief.
Is Debt Relief Through Credit Counseling Taxable?
One of the major advantages of using a debt management plan from a credit counseling agency (as opposed to opting for debt settlement) is that you generally won’t owe any taxes. When—or if—a lender agrees to forgive some of your debt in a settlement, you’ll be required to pay income taxes on that amount as if you’d earned it through your job.
Since you end up paying back all of your debt with a debt management plan—with none of it being forgiven—you won’t have to worry about this tax bill surprise.
The Bottom Line
If you’re struggling with debt and you’re not sure what to do, or you just need a second opinion, American Consumer Credit Counseling is one of the best places to go. You’ll find the same initial free consultation and debt management plans that other agencies offer, but American Consumer Credit Counseling goes a step further by offering exceptional and affordable one-on-one support, according to previous clients.
The only reason why we might recommend another agency is if you prefer a more user-friendly online interface, as this company's online experience is a bit out of date. However, that’s a minor complaint, and we think most people would be well-served by American Consumer Credit Counseling.
Frequently Asked Questions (FAQs)
Is American Consumer Credit Counseling Legit?
Yes, American Consumer Credit Counseling is a nonprofit organization that’s accredited by the National Foundation for Credit Counseling, the Better Business Bureau, the Department of Housing and Urban Development, and others.
Who Funds American Consumer Credit Counseling?
American Consumer Credit Counseling gets funding through debt management plan fees, fees for certain counseling and educational services, and grants and donations from creditors themselves.
How Much Does American Consumer Credit Counseling Cost?
American Consumer Credit Counseling doesn’t charge for initial consultations and some types of debt assistance. The bulk of customers enroll in a debt management plan, which costs $39 to get started, followed by a monthly fee ranging from $7 to $70, with the average client paying $25 per month. ACCC offers self-paced courses and certifications ranging from $39 to $75 that you may need in certain situations, such as when getting a reverse mortgage. It also works on a sliding scale and may waive certain fees entirely if you qualify.
Does American Consumer Credit Counseling Hurt Your Credit Score?
ACCC’s debt management plan can have an indirect negative effect on your credit, although the overall impact is likely to be far less than alternatives such as debt settlement or bankruptcy. You’ll be required to close any credit cards enrolled in the program, which may temporarily harm your score by increasing your credit utilization. Over time, however, your score will go back up as you make on-time payments and avoid further credit damage.
How We Determine the Best Credit Counseling Services
To determine the best credit counseling services, we reviewed various databases, competitive analyses, consumer behavior, and more, ultimately narrowing down the list to 40 companies, including 17 companies that offer credit counseling services that include debt management plans. We developed a quantitative model where we identified 53 important criteria across five categories. We weighted each category as follows for this article:
- Costs and fees: 37.00%
- Availability: 19.50%
- Reputation and stability: 18.50%
- Customer experience: 9.00%
- Services: 16.00%
We then gathered data for the 53 criteria directly from companies via websites, media contacts, and existing partnerships. Data were collected between Oct. 19, 2023 and Dec. 18, 2023. This resulted in over 2,000 data points in our rubric, which we used to score and determine the best debt relief companies (including debt settlement and credit counseling services) for people looking to manage and get out of debt.
To learn more about our process for finding the best debt relief companies, read our full methodology.
