The benefits of credit card counseling and debt consolidation
Feeling overwhelmed by debt? Carrying credit card balances that are too high? If you’re in financial trouble and can’t see your way out, credit card counseling and debt consolidation may be the answer.
Credit card counseling, or credit counseling, is a service provided by non-profit agencies dedicated to helping people just like you solve their financial troubles. A credit counselor can offer strategies and resources – customized for your financial situation – that can help you make a plan to get out of debt and strive for a debt-free future. Debt consolidation is a technique for managing debt that can simplify your finances and potentially reduce the interest on your loans or credit cards. Together, credit card counseling and debt consolidation can help you take control of your financial future and achieve your financial goals.
American Consumer Credit Counseling (ACCC) is a nonprofit agency offering credit counseling, debt consolidation, and debt management programs. With 30 years’ experience helping individuals just like you, we offer proven strategies that can help you start your journey out of debt.
What is debt consolidation?
Debt consolidation is a strategy for managing high levels of debt or credit card balances. When you consolidate debt, you’ll pay off existing loans or credit card balances by taking out a new loan or transferring balances to a new card. Debt consolidation is a way of simplifying your finances and making it easier to track your obligations – you’ll have just one payment to make each month instead of multiple payments to a variety of creditors.
However, the real value of debt consolidation is when you can secure a new loan with a lower interest rate than the combined rates on your existing debt. With a lower interest rate, you’ll be spending less each month on interest payments, which will help you pay down the principal on your loan more quickly.
The drawback of debt consolidation is that for people who are deeply in debt, finding low interest loans or credit cards can be difficult. If you consolidate at a higher interest rate, you’re simply digging yourself a deeper hole. Additionally, debt consolidation doesn’t address the choices or financial habits that got you into debt in the first place. For that reason, it’s possible to find yourself just as deeply in debt within a few months or years after consolidating your loans and credit cards.
ACCC: credit card counseling, debt consolidation, and more
Founded in 1991, ACCC is a not-for-profit credit counseling agency dedicated to helping consumers take control of their finances and plan for a debt-free future. We offer free credit counseling and low-cost debt management programs that have helped thousands of individuals and families solve their debt issues and live life debt-free.
When you come to ACCC for our free credit card counseling service, you’ll work with certified credit counselors who are highly trained experts at solving financial problems like yours. Our counselors can help with a wide range of financial issues, including:
- Free credit counseling to find the best approach for dealing with your financial issues
- Debt management programs that provide an easy way to consolidate debt and reduce interest rates
- Bankruptcy counseling, including the mandated pre-filing counseling session and the post-filing debtor education course
- Housing counseling, including counseling on reverse mortgages and foreclosures as well as homebuyer education and certification
- Student loan counseling to review options for paying off loans regardless of how much you owe or whether your loans are delinquent or in default
Tackle your debt through credit card counseling
When you come to ACCC for free credit card counseling services, you’ll meet with a credit counselor who can help you take a look at your finances and lay out all the options for dealing with your situation. Your counselor can explain the pros and cons of debt management or debt consolidation vs. debt settlement and bankruptcy. You’ll get answers to common questions about getting out of debt and how to avoid debt in the future. We’ll also talk with you about your financial goals and provide you with a personalized list of options based on those objectives.
Ultimately, your ACCC credit counselor can help you settle on the approach for getting out debt that seems best for you. We’ll also connect you with educational materials and financial tools that can help with budgeting, saving for college or retirement, and developing the financial habits that can help you avoid debt and reach your financial goals.
One of the most effective solutions for getting out of debt is a debt management plan which offers a form of debt consolidation. Rather than taking out a new loan, you’ll simply consolidate all your monthly obligations into a single payment made to ACCC. Our team will then use those funds to pay your creditors on your behalf, making sure everyone is paid on time. This arrangement simplifies your finances in the same way debt consolidation does. It also lets us approach your creditors to seek reductions in interest rates and finance charges, helping to lower the amount you owe. And by providing financial education along the way, we can help you develop the financial habits and practices that will let you avoid debt in the future.
Why work with ACCC?
With credit card and debt counseling from ACCC, you can count on:
- Certified credit counselors who care about you and will work with you until your problems are solved
- A reputable, non-profit agency with 30 years of experience in the credit counseling industry
- Convenient services offered six days a week in English and Spanish, in person and over the phone
- Free credit counseling to help you make a plan for getting out of debt
- Low-cost debt management plans – our rates are among the lowest in the industry
- Superior customer service, with ongoing support and counseling as long as you need it
- Confidentiality – your personal and financial information is safe with us
FAQs: What is credit card counseling and debt consolidation?
What is credit card counseling?
Credit card counseling, or credit counseling, is a service that’s typically provided by non-profit agencies dedicated to helping consumers get out of debt. Credit counseling services are usually provided free of charge or at very low cost. Credit counselors are certified financial professionals who help consumers identify options and make a plan for dealing with their debt.
What is debt consolidation?
Debt consolidation is a strategy for managing debt. When consolidating debt, consumers pay off multiple existing debts by taking on a single new debt. If the new debt has a lower interest rate than the combined rates on the old loans or credit card balances, the consumer can save money on interest payments and pay down their principal faster.