Debt Assistance Programs
Debt Assistance Programs Provide Relief When You Need it Most
A financial crisis can happen to anyone. Whether it's caused by job loss, a death of a spouse, personal or family illness, overspending, or other factors, the financial difficulty can usually be overcome through a self-administered financial plan, debt assistance programs, or a combination of the two.
Many people burdened with a heavy unsecured debt load often do not consider debt assistance programs. They are so overwhelmed with their financial situation that they feel defeated and believe there's nowhere to turn to solve their problems. But in most cases, these programs can be the first step in achieving financial freedom by helping you consolidate your debt.
Types of Debt Assistance Programs
There are two main types of debt assistance programs:
- Debt reduction service – These types of debt assistance programs negotiate with creditors to try to get them to accept a "settlement" to reduce the total amount of your debt. This is nearly a last resort option, short of filing for bankruptcy. Often the fees you pay for these debt assistance programs are high, and the creditors have no obligation to honor the terms of the settlement. This approach also hurts your credit rating and can impact tax filings.
- Debt management program – With these types of debt assistance programs, you can consolidate debt by paying one monthly amount to a credit counseling agency which in turn pays your creditors. The monthly amount is often less than the total of your current monthly payments on unsecured credit. This type of debt consolidation is preferable to taking out a loan to pay your debts. In addition to debt consolidation relief, a debt management program includes counseling on managing your money and developing a budget, as well as educational courses and materials.
ACCC Offers Responsible, Effective Debt Assistance Programs
If your financial problems are slipping out of control, contact American Consumer Credit Counseling (ACCC) for information about our debt assistance programs and how to pay off debt. We offer personalized debt management programs that can help you get back on your feet financially, without the long-lasting negative consequences of debt settlement or bankruptcy. We are a nonprofit agency and our fees are among the lowest in the industry.
ACCC is a member of the National Foundation for Credit Counseling (NFCC) and we are accredited by the Better Business Bureau with an A+ rating.
Our nonprofit credit counseling services include:
- Debt management programs
- Pre-bankruptcy counseling
- Post-bankruptcy debtor education
- Housing counseling
- Financial education