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

Is debt settlement a good idea?

If you’re carrying a lot of debt or high credit card balances, you’ve probably seen the advertisements from debt settlement or credit card settlement companies that promise to help you settle debt for a tiny fraction of the amount of money you owe to creditors. But is debt settlement a good idea? And what are the benefits of debt settlement over other ways of resolving your financial difficulties? Here’s a short introduction to “Is debt settlement a good idea?” that offers a quick overview of this debt relief strategy.

Is debt settlement a good idea?

The short answer: reviews are mixed. Debt settlement can help some people get out of debt at a cost that is less than what they owe. For others, debt settlement proves to be a costly mistake.

Get Your Debt Management Plan

Here’s how debt settlement works: you stop making payments to your creditors for a period of time, often six months or more. Once your accounts are significantly overdue and your creditors are starting to get worried, you make a debt settlement offer of a small lump sum payment in exchange for erasing your debt. If your creditors believe this is the best they can get, they may be inclined to accept your offer. Alternately, they may choose to sue you or turn your case over to a collections agency.

If your offer is accepted, you’ll have to pay your debt settlement agency as much as 25% of your savings, and the Internal Revenue Service (IRS) may take another 25%, leaving you with a much smaller windfall than you planned on.

Is debt settlement a good idea in terms of your credit rating?

Because it requires you to stop making payments on your bills and because you won’t be paying your debts in full, debt settlement will severely damage your credit rating. It may take up to seven years for you to restore enough credit to apply for credit cards, loans, rental agreements, and mortgages.

Is debt settlement a good idea if you can’t pay anything on your debt?

If your financial situation is so difficult that you can’t make any payment on your debt, debt settlement is not a good option. You need to be able to offer lump sum payment for debt settlement to work – even the best debt settlement agreements are at least 25% of the total amount owed.

Is debt settlement a good idea for paying off debt fast?

When you apply for debt settlement, it will take several months before you can make a settlement offer. If your debt settlement plan is successful, you may be able to erase your debt more quickly than by making regular payments over time, but it’s not an ultrafast fix.

Is debt settlement a good idea compared to bankruptcy?

Conventional wisdom is that bankruptcy should be a last resort for people in financial trouble. Filing for bankruptcy will likely mean you’ll have to give up some of your assets, and your credit rating may be damaged for up to 10 years. One positive note: bankruptcy can be a quick process, enabling you to start a new financial life and begin rebuilding your credit more quickly than other options.

Is debt settlement a good idea instead of consolidation?

Debt consolidation is a way of simplifying your finances and reducing the amount of interest you’re paying on loans and credit cards. It will not adversely affect your credit rating, but it likely won’t help you pay off your debt quickly.

Is debt settlement a good idea compared to debt management?

Debt management is another strategy for paying down debt that does not involve stopping payments to your creditors. Consequently, your credit will not be significantly impacted under a debt management program. Debt management is essentially a way of managing your financial life more carefully to allow you to pay down debt more quickly, while getting help from financial professionals to learn to live debt-free in the future.

To learn more about debt management, call for a free credit counseling session with American Consumer Credit Counseling, a nonprofit organization dedicated to helping consumers find the best way out of debt.

See what others are saying about our Debt Management Plan:

07/08/2020

Thank you for your help! I am a combat-injured veteran and last year we ran out of funds. The team was able to help us get back above water financially.  Kevin, your willingness to bend over backward in helping me with this account has helped us move for

Simon from FL

07/13/2020

ACCC works extremely well with credit card companies to reduce interest rates. I am finally seeing my total debt decreasing. They also encouraged me to try and fit this monthly payment into my budget.

Lynn from NJ

07/20/2020

I enjoyed talking with Randy.  He helped me immensely in getting to the goal of debt management.  He was very personable and patient with my questions.

Susan from OH

07/27/2020

Cleddy was amazing! He was super helpful and explained everything to me and really made me feel better about my financial situation! He talked me through everything and was so kind and patient!

Kristina from CT

Get Your Debt Management Plan

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
Dev Tool:

Request: is-debt-settlement-a-good-idea
Matched Rewrite Rule: ([^/]+)(?:/([0-9]+))?/?$
Matched Rewrite Query: name=is-debt-settlement-a-good-idea&page=
Loaded Template: single-resource-pages.php