If you are receiving unsolicited phone calls from an entity pretending to be ACCC (a trusted non-profit credit counseling agency), please be assured that ACCC’s policy is NEVER to contact you unless you’ve explicitly requested us to call you. Also be cautious of emails from an unusual or unfamiliar domain. ACCC’s domain extension is @consumercredit.com, and any emails using a different extension should be treated with suspicion.


ACCC’s Client Login allows current clients to access their program information, including the due date, program benefits, and other documents.

Select a Client Login below based on the service that you are currently enrolled in:

Debt Management Program

Client Login

Not yet a client, but looking to get started?

ACCC offers debt relief options to individuals and families that are suffering from stress related to credit card debt by providing effective credit counseling, helping to consolidate debt, and advising on debt management.

Get Started


You are now leaving the Consumer Credit website and are going to a website that is not operated by ACCC. We are not responsible for the content or availability of linked sites.

Are you sure you want to leave?

No, return me to the previous page.


Debt Consolidation Demystified: Understanding the Pros and Cons for Your Situation

Debt consolidation might initially appear overwhelming and complex, but it doesn’t have to be. By simplifying the concept, we can reveal its potential advantages and disadvantages, enabling you to decide if it’s the right choice for your financial needs. Let’s take a closer look into what debt consolidation is , discuss its benefits and drawbacks, and learn how it could play a role in your financial journey.

Debt consolidation is the process of combining multiple debts into a single loan.

For more information on your consolidation options please visit ConsumerCredit.com.

What is Debt Consolidation?

Debt consolidation is the process of combining multiple debts into a single loan. This new loan typically comes with a lower interest rate and a more manageable monthly payment plan. The aim is to simplify your financial obligations and reduce the stress associated with juggling multiple payments. Common forms of consolidation include personal loans, balance transfer credit cards, and home equity loans.

The Pros of Debt Consolidation

Simplified Payments

One of the most appealing aspects of debt consolidation is the simplicity it brings to your finances. Instead of keeping track of numerous due dates and varying interest rates, you make one consistent payment each month. This streamlined approach can help prevent missed payments and reduce the risk of late fees.

Lower Interest Rates

If you’re dealing with high-interest credit card debt, a consolidation loan can often provide a significantly lower interest rate. By consolidating your debt, you might save money in the long run, as more of your payment goes toward the principal balance rather than interest.

Improved Credit Score

Consolidation can positively impact your credit score over time. When you consolidate your debts, your credit utilization ratio decreases, which can lead to a higher credit score. Additionally, making consistent, on-time payments on your consolidation loan can further boost your credit standing.

Reduced Stress

Financial stress can take a toll on your mental and physical health. By simplifying your debt repayment process and potentially lowering your monthly payments, debt consolidation can alleviate some of this burden. Peace of mind comes from knowing you have a clear, manageable plan to become debt-free.

Fixed Repayment Schedule

Unlike credit card debt, which can fluctuate based on your spending habits and minimum payment requirements, a consolidation loan typically comes with a fixed repayment schedule. This predictability can help you budget more effectively and stay on track with your financial goals.

The Cons of Debt Consolidation

Potential for Higher Costs

While debt consolidation can save you money through lower interest rates, it’s essential to be mindful of potential fees associated with the loan. Some consolidation loans come with origination fees, balance transfer fees, or early repayment penalties. These costs can add up and offset the savings from a lower interest rate.

Risk of Accumulating More Debt

Consolidating your debt doesn’t eliminate it; it merely restructures it. There’s a risk that you might fall into old spending habits and accumulate more debt on top of your consolidation loan. It’s crucial to address the underlying issues that led to your debt and develop a budget to avoid falling back into the same financial patterns.

Impact on Credit Score (Short-Term)

While debt consolidation can improve your credit score in the long run, the process might initially cause a dip. Applying for a consolidation loan or transferring balances can result in hard inquiries on your credit report, temporarily lowering your score. Additionally, closing multiple credit accounts after consolidating can impact your credit history length and utilization ratio.

Collateral Requirement

Some consolidation loans, such as home equity loans, require collateral. This means that if you default on the loan, you risk losing your home or other valuable assets. It’s essential to carefully consider whether you’re comfortable with this level of risk before opting for a secured consolidation loan.

Not a One-Size-Fits-All Solution

Debt consolidation is not a magic bullet for financial woes. It works best for individuals who have a steady income and are committed to making consistent payments. If your debt is a result of deeper financial issues, such as insufficient income or chronic overspending, consolidation alone won’t solve the problem. You may need to seek additional financial counseling or explore other debt relief options.

Is Debt Consolidation Right for You?

Deciding whether debt consolidation is the right choice depends on your unique financial situation. Start by evaluating your current debts, interest rates, and monthly payments. Consider your long-term financial goals and whether a consolidation loan aligns with them. Consulting with a financial advisor can provide valuable insights and help you make an informed decision.

If you decide to move forward with debt consolidation, take the time to research different lenders and loan options. Look for reputable companies with transparent terms and competitive rates. Compare the total costs of each option, including any fees, to determine which one offers the best value.

Debt consolidation can be a powerful tool for managing and reducing debt, but it’s not without its challenges. By understanding the pros and cons, you can make a more informed decision and take a significant step toward achieving financial stability. Remember, the key to successful debt management is not just consolidating your debt but also addressing the root causes and developing healthy financial habits.


If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.


Your Ultimate Money Management App

Meet CreditU, the ultimate one-stop debt and financial management app! See your full financial overview, including debts, income, expenses, and savings.

CreditU Apple App Store
Dev Tool:

Request: blog/debt-consolidation-demystified-understanding-the-pros-and-cons-for-your-situation
Matched Rewrite Rule: blog/([^/]+)/?$
Matched Rewrite Query: post_type=post&name=debt-consolidation-demystified-understanding-the-pros-and-cons-for-your-situation
Loaded Template: single.php