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

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

Consolidation Loan

Can a Consolidation Loan Eliminate Debt?

Debtors often use a consolidation loan as a method used to handle excessive debt. For example, they will take out a home equity loan to consolidate credit card debt because of the tax advantages associated with equity loans. Home equity loans reduce the monthly payments, because borrowers can pay only the monthly interest to stay current.

Disadvantages of a Consolidation Loan

While a consolidation loan may seem to be an effective method for paying off bills, these loans can also be dangerous. That’s because debtors can be tempted to incur charges on the credit cards that were paid off with the loan. The debt mounts, and then before they know it, they can be in serious financial trouble again. Getting a second credit consolidation loan is unlikely, because at this point the debtor’s credit rating is too low to qualify.

Another disadvantage is that although the interest rate on a consolidation loan usually is less than other types of credit, the extended loan period results in more finance charges over the life of the loan. The result is an overall higher total balance paid.

In addition, a consolidation loan requires debtors to put up collateral, and this limits their future borrowing power and could place their property at risk if they can’t make their monthly payments. Eventually their homes could be foreclosed or they may need to seek credit counseling for bankruptcy (link to: “credit counseling bankruptcy” page) to decide whether to file. Bankruptcy could further damage their credit records, for up to 10 years.

The best way to consolidate debt is not to incur new debt. There is a way to do this by working with an experienced credit counselor at a legitimate non-profit credit counseling agency.

A Debt Management Program vs. a Consolidation Loan

Unlike a consolidation loan, a debt management program allows you to consolidate your debt without borrowing more money. That’s where American Consumer Credit Counseling (ACCC) can help. With our debt management program, we work with your creditors to consolidate your credit. You send one convenient monthly payment to us, and we distribute it among your creditors. We also may be able to get your creditors to reduce interest rates and waive fees and penalties that you may have incurred.

Call us today and talk to one of our experienced, trained credit counselors about tailoring a debt management plan that will help you with consolidating bills and start you on the journey to financial freedom.

See if our Debt Management Program is right for you Should you consolidate your debt? See how much it really costs to use your credit cards
creditU

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: consolidation-loan
Matched Rewrite Rule: ([^/]+)(?:/([0-9]+))?/?$
Matched Rewrite Query: name=consolidation-loan&page=
Loaded Template: single-resource-pages.php