American Consumer Credit Counseling review November 2024: Features, pricing, and more  

American Consumer Credit Counseling

Affiliations/accreditations:	BBB, United States Department of Housing and Urban Development
Debt management plan fees:	Varies by state, no more than a $35 one-time enrollment fee, $7 monthly fee per account capped at $70 for debt management; 15%-25% of settled debt in debt settlement
BBB rating:	A+

Pros and Cons

Pros

• Affordable rates because it is a nonprofit
• Reverse mortgage counseling
• Both debt management and debt settlement services

Cons

• Debt settlement can negatively affect credit
• Potential tax consequences
• It may take months or years to resolve debts

Who is American Consumer Credit Counseling good for?  

Because American Consumer Credit Counseling has so many debt services, it is a suitable option for anyone wanting to get a handle on their debts, regardless of how much they owe. According to Michael Schmied, senior financial analyst at Kredite Schweiz, an international loan company, “Credit counseling services are great for recent college graduates with student loans and retirees managing fixed incomes.” These demographics often need some extra insights to help navigate their financial situations. Those with high balances on credit cards are a good fit for their debt settlement services. Those looking for insights on reverse mortgages and foreclosure proceedings will benefit from the counseling services to understand these options better and how to avoid pitfalls.

Who shouldn’t use American Consumer Credit Counseling?

If you aren’t ready to commit to a plan of action and be in it for the long haul, you should not use American Consumer Credit Counseling. It can take years to see results. While American Consumer Credit Counseling has a plan to meet most people’s needs, it isn’t for everyone. However, having options is a good sign. According to finance expert Ben Klesinger of Reliant Insurance Group, “bad services push one-size-fits-all options and don’t fully disclose fees.” This isn’t American Consumer Credit Counseling. They are upfront and offer a wide variety of services.

American Consumer Credit Counseling services

American Consumer Credit Counseling offers a wide variety of services that include: 

• Credit Counseling: These services will evaluate your current financial situation and provide you with a detailed review that considers your income, assets, and expenses. Options are then given to help you get on track to pay down the debt. 
• Debt Management Program: This program develops a manageable monthly payment plan so that you can pay down debt and stay on budget. It may consolidate debts into one affordable payment, making it easier to manage owed money. 
• Bankruptcy Counseling: The U.S. government requires this session for anyone looking to file for bankruptcy. The session assesses the debt, considers options, and advises clients on how to better manage debt in the future. 
• Housing Services: Taking on a mortgage is a big deal, whether it is a traditional mortgage or a reverse mortgage. American Consumer Credit Counseling will help consumers better understand the loans and how it affects their long-term financial goals. 
• Debt Settlement: This service negotiates a lower amount owed on credit card debts to help reduce payments and interest. However, this can negatively impact credit scores since you need to stop paying the debt to allow the company to negotiate a settlement. 
• Debt Consolidation: This process involves taking several loans and credit card debts and consolidating them into one loan to make payments easier. The goal is to lower monthly payments with a lower interest rate and set a time period to pay off the debt.

How American Consumer Credit Counseling fees work

The fees for American Consumer Credit Counseling will vary based on the services that you choose and the state that you live in. For debt management, consumers can expect to pay up to a $39 enrollment fee and up to $7 per month per account fee, capped at $70 per month. This is a different payment option than you might find for debt settlement, which will charge anywhere from 15% to 25% of the total debt owed. 

American Consumer Credit Counseling is transparent about pricing. To find out what you will pay, call them for a free consultation to see what program is best for you. 

American Consumer Credit Counseling’s consumer reviews

American Consumer Credit Counseling has more than 960 customer reviews with the Better Business Bureau. It has an A+ rating and averages 4.98 stars out of five in its reviews. Consumers like the company for its helpful representatives who express empathy for the consumer’s financial woes. Those who have used the debt settlement program say that the company negotiated a favorable settlement successfully with creditors and was able to help the debtor. 

The BBB website has six complaints about the company in the past six years. Complaints say that consumers are still receiving creditor letters and charge-off notifications for accounts enrolled in the system. The creditors are unaware of the enrollment, which leads to frustration for the consumer.  

American Consumer Credit Counseling alternatives

The takeaway 

American Consumer Credit Counseling is a viable counseling option for those with all types of debt. They will help with credit card debt, mortgages, and other loans. Fees vary from state to state, so it’s best to get a free consultation to find out exactly what it will cost you to work with them.