American Consumer Credit Counseling Review: ACCC Debt Management Plans That Don’t Tank Your Credit

No Minimum Debt Required to Enroll

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Debt Management Plan

• Smaller impact on credit score than debt settlement
• No minimum debt requirement
• Nominal fees may be waived
• Nonprofit company with stellar reputation
• Financial education and resources
• Bankruptcy and housing counseling

• Not all debt may be eligible
• No guarantee of reduced rates and fees
• Longer than typical debt settlement program

Solutions offered	Credit counseling, debt management plans, bankruptcy counseling, and housing services
Debt required	No minimum
Counseling consultation fee	Free
Enrollment fee	$39 (may be waived or reduced)
Maintenance fee	$7 per account per month; max $70 per month (may be waived or reduced)
Timeline	4 – 5 years

Table of Contents

1. What does ACCC do?
   1. Debt management plan vs. debt settlement
   2. Credit impact
   3. Kinds of debt
   4. Cost
   5. How it saves money?
   6. Other ACCC services
2. How it works
3. Pros and cons
4. Reputation
5. Alternatives

What does American Consumer Credit Counseling do?

American Consumer Credit Counseling offers a number of core services:

• Credit counseling
• Debt management program (DMP)
• Bankruptcy counseling
• Housing services

For most, it all starts with the free credit counseling session, during which an expert at ACCC will help you determine the best path forward to tackle your debt. Typically, that means setting up a debt management program (also called nonprofit debt consolidation).

We’ll cover those other services (bankruptcy and housing) below.

Debt management plan vs. debt settlement

The core difference between American Consumer Credit Counseling and traditional debt relief companies is that ACCC doesn’t negotiate with creditors to try to settle your debt. Instead, the nonprofit consolidates your debt into one monthly payment to ACCC, which is then distributed to your creditors. You’ll close all credit accounts so you don’t incur further debt.

At the same time, ACCC works with these creditors to lower your monthly payments and improve your credit score by:

• Lowering your interest rates
• Reducing finance charges, late fees, and over-limit charges
• Negotiating extended deadlines for debt repayments 
• Removing delinquent accounts from your credit report

ACCC says many creditors accept the proposed DMP and reduce interest rates instantly; others may wait for three successful on-time program payments before adjusting rates. Either way, if a creditor is willing to participate in your DMP, you can expect lower, more manageable payments in the short term.

With for-profit debt relief programs, on the other hand, you must stop making payments to your creditors, which means your credit score will take a major nose dive and you’ll rack up fees and interest—without a guarantee that the company will successfully negotiate down your debt. The debt relief company may successfully settle your debt for a lower amount than what you’ll pay through ACCC, but you’ll then owe a steep fee (often 25% of your enrolled debt) to the debt relief company.

How does ACCC’s DMP affect my credit?

Enrolling in a debt management plan with ACCC can have a small, short-term impact on your credit. You’ll be required to close all of your credit accounts, which may cause a dip in your score. However, the long-term benefits can outweigh the initial hit:

• On-time payments made through ACCC’s plan help rebuild your payment history, the most important factor in your credit score.
• Delinquent accounts may be removed from your credit report after several months of on-time DMP payments, improving your score over time.
• Lower credit utilization also becomes more achievable as interest rates and fees are reduced, making debt more manageable.

While your credit score may dip slightly after enrollment, the damage is typically far less severe than the impact from debt settlement, which often requires you to stop making payments entirely.

What kinds of debt does ACCC manage?

You can enroll various unsecured debts into your American Consumer Credit Counseling debt management program, including:

• Credit cards
• Department store cards
• Collection debt and collection accounts
• Some installment loans

How much does the American Consumer Credit Counseling debt management program cost?

The initial credit counseling session with ACCC is entirely free. If, after discussing your options, you determine that a debt management program is the best path forward, you can expect the following fees:

1. A one-time $39 enrollment fee
2. A monthly $7 maintenance fee per account, up to a maximum of $70 per month (the average fee paid by program participants is $25, according to ACCC)

Both fees may be waived or reduced depending on your state’s regulations, as well as the level of financial hardship you’re facing.

How does ACCC save me money?

American Consumer Credit Counseling saves clients money by working with creditors to significantly lower interest rates and reduce fees, including late fees. While you must still make payments over several years (four to five, on average, but it depends on the amount of debt), you’ll ultimately save on interest and fees.

So how do these savings compare to what you’d get with a traditional debt relief company?

Debt relief companies actually settle your debt for less, which means you don’t pay off your full debts—if the debt relief company is successful. However, you’d owe a large fee to the debt relief company for any successfully reduced debt, and your credit score would likely plummet.

Other ACCC services

In addition to credit counseling and debt management programs, ACCC offers bankruptcy counseling and housing services, such as reverse mortgage counseling and homebuyer education and certification.

• Bankruptcy counseling is required by law before you can officially file for bankruptcy. You can take this session with ACCC to evaluate your situation and learn more about the bankruptcy process. ACCC offers pre-filing online counseling for $49 per household and post-bankruptcy online counseling for $39 per household.
• Reverse mortgage counseling is another government requirement before seeking a reverse mortgage. You can start this process with ACCC by filling out this form.
• Homebuyer education and certification is sometimes required to get a mortgage. You can complete the course through ACCC and Framework, if needed.

How American Consumer Credit Counseling works

Completing a debt management program with ACCC is a straightforward process. Here’s how it works:

1. Have a free counseling session: During this free consultation, the credit counselor will gather relevant information about your financial situation and assemble a DMP for you to enroll in, if that’s the right path forward. The counselor will also help you come up with a realistic budget to avoid major debt in the future.
2. Wait for ACCC to determine account eligibility: ACCC will reach out to your creditors to see whether they’ll agree to your DMP with reduced interest rates and fees and an extended payment timeline. If the creditors agree, ACCC will take over management of the accounts. (Note: Some creditors may not agree to the DMP, in which case you’ll need to manage those accounts on your own.)
3. Transfer your accounts to ACCC: You’ll close all credit accounts—which will have a small negative impact on your credit score, but nothing like the negative impact from the missed payments that are a hallmark of debt settlement programs—and ACCC will begin paying your creditors for those accounts directly.
4. Make monthly payments to ACCC: You’ll have one consolidated payment to ACCC each month. Even after one account is paid off, your monthly payment will not change; instead, the extra funds will go toward paying down your remaining debts faster.
5. Expect to be debt-free within 4 to 5 years: Program length depends on the size of your debt and the details your creditors agree to. Most participants complete the program within 60 months.

Pros and cons of ACCC’s debt management program

Pros

• Smaller impact on your credit score

  Unlike debt settlement, ACCC’s debt management plan (DMP) doesn’t require you to stop making payments to creditors. You may see a slight drop when accounts are closed, but on-time payments and potential removal of delinquent marks can improve your credit over time.

• No minimum debt required to enroll

  Whether you have $1,000 or $50,000 in unsecured debt, you can access help—making this a flexible option for people who may not qualify for traditional debt relief programs that require $10K+ in debt.

• Fees are often waived or reduced

  Although ACCC charges modest fees (a $39 enrollment fee and monthly maintenance fees), many clients pay less due to state caps or demonstrated financial hardship.

• Nonprofit with a strong reputation

  ACCC is a long-established nonprofit accredited by the Better Business Bureau (A+) and the Council on Accreditation. It’s also a member of the National Foundation for Credit Counseling (NFCC).

• Includes financial education and support

  In addition to lowering your interest rates, ACCC helps you build better financial habits with budgeting guidance, housing counseling, and access to educational tools.

Cons

• Not all debt qualifies

  Secured debts (like car loans) and some private student loans typically cannot be included in your DMP. You may still be responsible for those accounts separately.

• No guarantee of reduced rates or fees

  While many creditors work with ACCC and lower interest rates, they’re not obligated to. Some may wait for on-time payments before making adjustments, or refuse altogether.

• Takes longer than debt settlement

  A DMP usually lasts four to five years. That’s longer than some debt settlement timelines, but it comes with the benefit of less credit damage and full repayment of your debts.

Is American Consumer Credit Counseling legit?

American Consumer Credit Counseling is a legitimate nonprofit organization that helps people take control of their finances through budgeting, credit counseling, housing counseling, bankruptcy counseling, debt management programs, and financial education resources.

ACCC is accredited by the Council on Accreditation (COA) and the Better Business Bureau (BBB), with which it has an A+ rating. ACCC is also a member of the National Foundation for Credit Counseling (NFCC) and has 5 stars on ConsumerAffairs, based on consumer feedback.

Alternatives to ACCC

ACCC cannot enroll all types of debt in a debt management program. For instance, you aren’t able to include secured debts such as car loans and private student loans in the DMP. It’s also possible that creditors may not accept ACCC’s proposal or that you can’t afford the consolidated monthly payment ACCC would have you pay as part of the program.

In those cases, it may make more sense to consider a debt relief company, specifically those aimed at debt settlement. The fees can be significant, and your credit score will suffer, but these companies may be able to dramatically reduce how much you owe on some accounts.

The table below includes details for the three best debt relief companies we’ve rated: