At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a 501(c)(3) nonprofit credit counseling agency based in Auburndale, Massachusetts. Founded in 2004, the organization has served over 1 million consumers through free credit counseling sessions and debt management plans (DMPs). ACCC is accredited by the Council on Accreditation (COA) and approved by the U.S. Department of Housing and Urban Development (HUD) for pre-bankruptcy counseling and debtor education — both required by federal law before filing Chapter 7 or Chapter 13 bankruptcy. The core distinction between ACCC and for-profit debt settlement companies is that a DMP does not reduce your principal balance. You repay every dollar you owe. What changes is the interest rate — ACCC negotiates concessions from creditors (typically reducing rates to 0-9% from 20-30%+) and consolidates your payments into one monthly amount. For someone who can afford to repay in full but is drowning in interest, this approach preserves credit better than settlement and avoids the tax liability on forgiven debt. ACCC charges a $75 setup fee (waived for hardship cases) and a monthly maintenance fee of $30-$50 depending on the number of accounts enrolled. Their counselors are certified through the National Foundation for Credit Counseling (NFCC) and are salaried — not commission-based — which removes the incentive to push services you do not need. The agency also provides free financial education workshops, budgeting tools, and housing counseling.
Key Features
Free Credit Counseling Session
The initial session is free and covers your full financial picture — debts, income, expenses. The counselor gives you an honest assessment of whether a DMP makes sense or if another option (consolidation, settlement, bankruptcy) fits better.
Reduced Interest Rates
Creditors have pre-negotiated rate concessions with ACCC. Most major credit card issuers drop rates to 0-9% for clients on an ACCC DMP. That is the main savings mechanism — interest reduction, not principal reduction.
HUD-Approved Bankruptcy Counseling
If bankruptcy turns out to be your best option, ACCC can provide the required pre-filing counseling and post-filing debtor education courses mandated by federal law. Both are available online or by phone.
Salaried Counselors
Counselors are paid salaries, not commissions. They have no financial incentive to enroll you in a DMP if it is not the right fit. That is a real difference from for-profit companies where the sales team earns based on enrollment volume.
Financial Education Resources
Free workshops, online courses, and budgeting tools come with the counseling. Useful for building the habits that prevent future debt problems.
How It Works
Free Counseling Session
A certified counselor reviews your complete financial picture and recommends the best path forward — which might not be a DMP.
DMP Proposal
If a DMP is the right fit, the counselor creates a proposal showing your new monthly payment, projected payoff date, and total interest savings.
Creditor Enrollment
ACCC contacts your creditors to enroll your accounts in the plan. Most major creditors accept within 1-2 billing cycles.
Monthly Payments
You make one monthly payment to ACCC, which distributes it to your creditors according to the plan. Payments are automated to prevent missed deadlines.
Debt-Free Graduation
The plan runs 3-5 years. When the last payment clears, your enrolled debts are paid in full with a clean payment history for the DMP period.
What They Do
- Credit Counseling
- Debt Management Plans
- Bankruptcy Counseling
- Housing Counseling
- Financial Education
Debt Types They Take On
- Credit Cards
- Medical Bills
- Personal Loans
- Store Cards
- Collections
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
High-Interest Credit Card Spiral
Client carried $31,000 across 4 credit cards with interest rates ranging from 22.99% to 29.99%. Minimum payments totaled $980/month, of which approximately $650 was going to interest alone. At minimum payments, payoff would have taken 14+ years and cost over $48,000 in interest. Client's household income was $5,200/month with stable employment.
Post-Divorce Debt Reorganization
Client inherited $22,000 in joint credit card debt from a divorce decree. Three accounts at 24-28% interest with combined minimums of $640/month. Client's post-divorce income of $3,800/month left little margin for unexpected expenses, and she had already missed two payments.
Pros & Cons
Pros
- Nonprofit 501(c)(3) with salaried counselors — no commission-driven pressure to enroll in services you do not need
- HUD-approved for pre-bankruptcy counseling and debtor education, which provides a one-stop option if bankruptcy turns out to be the better path
- Interest rate reductions of 20+ percentage points on most major credit cards preserve principal while dramatically cutting total repayment cost
- Very low CFPB complaint volume (28 in 3 years) relative to over 1 million clients served since 2004
- DMP payments show as on-time payments to credit bureaus, helping rebuild credit during the program rather than destroying it
Cons
- You repay 100% of your principal — there is no balance reduction. If you cannot afford to repay in full even at 0% interest, a DMP is not the right solution
- Program length of 3-5 years is longer than typical debt settlement programs (24-48 months) and requires sustained commitment
- You must close enrolled credit card accounts, which reduces available credit and can temporarily lower your credit score
- Monthly fees of $30-$50 add up over a 3-5 year program — budget $1,440-$3,000 in total fees over the life of the plan
- Not all creditors participate in DMP programs or agree to rate reductions — some accounts may need to be handled separately
User Reviews (10)
bankruptcy alternative
My lawyer said file chapter 7. ACCC counselor said try the DMP first. 3 years later I am debt free without bankruptcy on my record. That counselor changed the trajectory of my financial life. Her name was Maria and she was wonderful.
interest rates dropped huge
My Chase card went from 27% to 3%. Discover went to 0%. That alone saved me thousands. Yes I still pay back everything I owe but the interest was the whole problem.
good but long
Im 2 years into a 4 year plan. Results are good, interest is way down, but 4 years is a LONG time to be on a budget this tight. Just mentally exhausting. Not their fault, thats just how DMPs work.
honest people
The counselor actually told me I did not need a DMP and could pay off my debt on my own with some budget changes. That is how you know they are legit.
helped a lot
Helped me a lot. Would recommend.
one creditor refused to participate
My biggest account (Synchrony, $9,800) REFUSED to participate in the DMP. So I still had to deal with them on my own at 28% interest while paying into the plan for the other cards. ACCC said "not all creditors participate" — would have been nice to know that BEFORE I enrolled and closed all my other cards!!!
fine
fine
closed my credit cards
They make you close your credit card accounts when you enroll. Nobody told me that upfront. My credit score dropped 40 points just from losing the available credit. It has recovered since but that was a surprise I did not appreciate.
monthly fee adds up
The $45/month fee over 4 years is $2,160. That is not nothing. I understand they are a nonprofit and need to keep the lights on but it feels steep when you are already stretched thin.
I COULD HAVE DONE THIS MYSELF
You know what a DMP is? They call your credit card companies and ask for a lower rate. YOU CAN DO THAT YOURSELF FOR FREE. I called Citi after dropping out and got the SAME rate ACCC had negotiated. I paid them $75 setup and $40/month for 8 months ($395 total) before figuring this out. Total waste. If you have the nerve to make a phone call save your money and do it yourself.
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Important Credit Counseling Disclaimers
- Credit counseling and debt management plans (DMPs) require you to repay 100% of your principal balance. You may receive reduced interest rates and waived fees, but the total principal owed does not decrease.
- Enrolling in a DMP may require you to close credit card accounts, which can temporarily lower your credit score by reducing your available credit and increasing your utilization ratio.
- Monthly DMP payments are typically distributed to creditors by the counseling agency. If the agency fails to make timely payments on your behalf, your credit can be damaged. Verify the agency's payment track record before enrolling.
- Not all creditors participate in DMP programs. Some may refuse to lower interest rates or waive fees. You remain legally obligated for the full debt regardless of creditor participation.
- Credit counseling agencies charge monthly fees (typically $25-$75) and sometimes setup fees ($0-$75). Nonprofit status does not mean services are free.
- A DMP typically takes 3-5 years to complete. Early termination may result in creditors restoring original interest rates retroactively on remaining balances.
- Zogby does not provide credit counseling services. We are an independent comparison service. We do not negotiate with creditors on your behalf or manage debt management accounts.
This page is informational, not financial or legal advice. Talk to a qualified professional before making any big money decisions.
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