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

Bankruptcy

Pre-Bankruptcy Client

Post-Bankruptcy Client

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

Wait!

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.

Yes

What Is The Cost Of Debt Consolidation?

cost of debt consolidationIf you are facing a lot of debt and uncertainty, you may be hesitant about paying for any kind of debt consolidation service. However, it may be the best way to get your finances back on track. Let’s walk through the cost of debt consolidation and how to choose the right company.

Choosing the Best Company for Debt Consolidation

There are so many companies out there with many claims- some true some not- of helping with debt reduction. When it comes to debt consolidation, you must first choose a reputable company that is not after profit but your best interest in mind. So let’s find out what a good debt consolidation company looks like and then figure out the cost of debt consolidation.

  • Choose a non-profit credit counseling organization rather than a for-profit one. A non-profit credit counseling agency’s sole mission is to help its customers, and non-profits’ fees are typically minimal.
  • Check with the Better Business Bureau (BBB) for information on the company. A high grade from the BBB means that you’re likely to receive good customer service from the agency.
  • A company with seven to ten years in business or more is typically a better choice than a brand new one.
  • Make sure they have continuous support throughout the process.

Reviewing the Options and Cost of Debt Consolidation

The first way to sort out debt consolidation options is the primary type of service that they offer. It’s best to think twice before doing business with:

  • Companies touting some type of debt settlement solution. Debt settlement can have a profoundly negative impact on your credit; fees are typically high; some creditors may refuse to participate in the settlement, and you may be taxed on the difference between the lump sum you paid and the total amount you owed.
  • Companies pushing loans for debt consolidation. When you borrow more money to pay off existing credit card debts, the interest rate on the loan is often steep; and you may start using your paid-off cards again and wind up in even more debt than you are now.

You’re better off steering toward companies that can consolidate your debt into one monthly payment without shorting your creditors, and without you doing any additional borrowing. This type of arrangement usually has a monthly fee based on a number of accounts they are managing for you. Plus, it comes with a cap that adheres to Federal or state laws.

Review of ACCC’s Debt Management Program

American Consumer Counseling is a non-profit credit counseling agency offering such services. ACCC’s Debt Management Plan (DMP) enrollment fee is $39 and may be reduced or waived due to hardship. There’s a monthly maintenance fee of $5 per account included in the program, but the maximum fee is $35. This fee is waived for active military.

Here is an example of some of the money saving benefits offered through a debt management plan through ACCC between paying on your own vs the DMP:

Type of repayment Self DMP
Amount of debt $15,000 $15,000
Interest rate 20% 10%
Monthly payment $331.00 $331.00
Number of payments 85 57
Total payments $28,135.00 $18,867.00

As you can see, a DMP saves this consumer nearly $10,000, and the debt is paid off much quicker. When you need to start the debt consolidation process, remember the criteria stated above to choose the best company for you and your finances.

To speak to a credit counselor today about budgeting and managing your finances, call 800-769-3571.

 

ABOUT AUTHOR / Michelle

Michelle is a regular contributor to Talking Cents. She has taken several financial courses on debt management and is ready to circulate what she has learned from them as well as lessons from her own life- family to DIY projects to student loan debt.

View all author posts →

Dev Tool:

Request: blog/what-is-the-cost-of-debt-consolidation
Matched Rewrite Rule: blog/([^/]+)/?$
Matched Rewrite Query: post_type=post&name=what-is-the-cost-of-debt-consolidation
Loaded Template: single.php