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Consolidating credit card debt

The pros and cons of consolidating credit card debt.

When you’ve got high balances on lots of credit cards, consolidating credit card debt may seem like an appealing idea. By paying off a variety of cards with a new loan or a card at a lower interest rate, you can theoretically save some money and reduce your stress over finances.

However, consolidating credit card debt is not a smart choice for every consumer. If the interest rate isn’t low enough, you may not save much money at all, particularly after factoring in the cost of originating the new loan. And if you haven’t taken steps to address the issues that landed you with high credit card balances in the first place, consolidating credit card debt may only be adding to your financial difficulties.

When you’re thinking about consolidating credit card debt, it’s a good idea to get credit card debt help from debt advisors at a reputable credit counseling service. You’ll get objective advice, helpful recommendations and answers to questions like “Is credit card debt consolidation good or bad for my financial situation?”

Guidance on consolidating credit card debt from ACCC.

American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling agency that works to help individuals and families find a personalized path out of debt. We offer free credit counseling and low-cost financial services that include debt management, bankruptcy counseling and more.

When you contact us for a free counseling session, you’ll talk to certified and highly trained credit counselors who can help you get a clear picture of your finances. They’ll present you with a list of options for getting out of debt, based on your financial goals. And they’ll answer questions about the best ways of consolidating credit card debt and about options for debt consolidation for bad credit.

Consolidating credit card debt payments with a debt management program.

One of the most effective ways of getting out of debt is a debt management program. Rather than consolidating credit card debt and loans, a debt management program works by consolidating credit card debt payments. You won’t take out any new loans to pay off old debts or enroll in a risky debt consolidation scheme. Instead, you’ll write just one check each month to ACCC, and we’ll pay all of your credit cards bills for you. Plus, we’ll contact your creditors and try to lower your monthly payments, your interest rates, and other fees to help you pay off your debt faster. With a debt management program from ACCC, you’ll gain the financial discipline and receive the support you need to pay off your debt quickly – usually in 60 months or less.

American Consumer Credit Counseling (ACCC) is a nonprofit debt counseling agency offering free debt counseling services and a low-cost debt management services. As one of the nation's leading credit counseling agencies, our certified and highly trained credit counselors help individuals to understand the advantages and disadvantages of government debt consolidation programs, of a private debt consolidation program and of debt consolidation with bad credit. In contrast to a debt consolidation counseling agency or credit card counseling service, we help consumers find credit debt relief by determining the most effective way to pay off debt without taking on new loans.

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