FAQ

We have tried to be complete but succinct on our site--but maybe there are still a few questions. See if any of your questions are answered below, and if not, drop us a line at info@americancreditconsultants.org.

Q: What is debt consolidation?
Q: What are the benefits of debt consolidation?
Q: What kind of debt qualifies for debt consolidation?
Q: How long does it take to pay off my debts?
Q: Why can't I just negotiate with creditors on my own?
Q: Why can't I just keep paying off my creditors on my own?
Q: How much will it cost me to be on the debt management program?
Q: How is my payment determined?
Q: How will joining American Credit Consultants' Program affect my credit rating?
Q: Will I still receive harassing phone calls?
Q: Will I still receive statements showing payments to my creditors?
Q: Can I still use my credit cards if I enroll in a debt management program?
Q: How do I get started in your program?

 

Q: "What is debt consolidation?"
A: Debt consolidation is a process of restructuring your existing unsecured debt with your creditors. It is a plan whereby you now have to make only one monthly payment that is then distributed to the creditors you owe. We negotiate with all of your creditors to obtain the lowest monthly obligation needed to satisfy all of your current accounts. Debt consolidation is not a loan, but a process to lower your current monthly payments and lower the interest rates (sometimes eliminating) you are currently paying.
    Top of Page

 

Q: "What are the benefits of debt consolidation?"
A: You will be making one convenient monthly payment to us and in turn we disburse all funds to your creditors. In most cases, this new payment will be lower (perhaps by as much as 50%) than the sum of your current individual account obligations, and more of your money will be going on the principal.
    Top of Page

 

Q: “What kind of debt qualifies for debt consolidation?”
A: Most unsecured debt can be included in a debt consolidation program. For example, credit cards, medical bills, student loans, taxes and bank lines are debts commonly consolidated. Secured loans such as a mortgage or a car loan usually cannot be consolidated successfully.
    Top of Page

 

Q: “How long does it take to pay off my debts?”
A: Most of our clients are able to reduce payments as well as reduce interest charges. If you continue to pay only the minimum amount due yourself, it would take up to 20 years to pay off most balances. But with our program, most clients are able to pay their debt in only 3 to 6 years.
    Top of Page

 

Q: “Why can't I just negotiate with creditors on my own?”
A: In some cases, you can negotiate with creditors on your own to arrange payment or have positive information reported to a credit bureau. However, to get the benefits of lowered monthly payments, lower interest rates, stopped late charges, and waived over the limit fees, you need American Credit Consultants. As a non-profit organization, American Credit Consultants credit counselors can secure you these benefits not usually available to credit consumers.
    Top of Page

 

Q: “Why can't I just keep paying off my creditors on my own?”
A: If you keep paying just the minimum to your creditors at the current interest rate, it will take you much longer than if you paid off your debt through American Credit Consultants. A $10,000 debt usually takes 32 years and $24,500 to pay off, if you are paying the monthly minimum of 2.5% of the balance at an average interest rate of 18.5%. Because we may be able to reduce your interest rates, stop over the limit fees, and so on, it will take a lot less time to pay off your debt through us. Chances are, in the past, all your debt payments have just gone to pay off interest. You probably haven't even reduced the balance! On average, American Credit Consultants clients pay off their debts in 3 to 6 years, depending on individual circumstances.
    Top of Page

 

Q: “How much will it cost me to be on the Debt Management Program?”
A: Due to the fact that American Credit Consultants is a non-profit organization, we do not charge any advance fees for our service. We do request that clients make an initial one time payment of $75.00 to join our organization to help defer the costs of setting up your account and start the negotiations with your creditors, and make a monthly contribution to our organization to cover the costs involved in handling the accounts on a monthly basis. As a non-profit organization, American Credit Consultants depends on these small contributions to meet our operating costs. Our clients find that their increased cash flow from lower monthly payments, interest rate reductions and stopped late charges more than covers the cost of the monthly contribution.
    Top of Page

 

Q: “How Is My Payment Determined?”
A: Our specialists are skilled at working with creditors nationwide and negotiate with each to come up with the lowest possible payment based upon your individual circumstances.
    Top of Page

 

Q: “How will joining American Credit Consultants' Program affect my credit rating?”
A: If you make your payments in full and on time to American Credit Consultants, then many of your creditors will "re-age" your account, which means they will show your accounts as current after several payments. In general, if you are paying off debt, that can revitalize your credit report. Showing that you are working through a credit counseling service may show future creditors that you needed help but wanted to pay off your debts in full.
    Top of Page

 

Q: “Will I still receive harassing phone calls?”
A: You might the first several months on the program since it takes time for your creditor's collections department to find out you're with American Credit Consultants. If you get a harassing call, inform the party to call American Credit Consultants and speak to your account specialist. If you get a harassing call from a collection agency that is not part of your creditor's company, we will provide you with a cease and desist letter. 3rd party collection agents must obey this letter, according to the Fair Debt Collection Practices Act. Make sure you tell your account specialist if you receive any such calls from a collection agent.
    Top of Page

 

Q: “Will I receive statements showing payments to my creditors?”
A: You will also continue to receive statements from creditors that have not charged off your account so that you may track your progress on the Debt Management Program.
    Top of Page

 

Q: “Can I still use my credit cards if I enroll in a Debt Management Program?”
A: Since the objective of the program is to get you out of debt as quickly as possible, your accounts with the program will be closed.
    Top of Page

 

Q: “How Do I Get Started In Your Program?”
A: We offer an online creditor listing form for your convenience. Click on the free quote link, fill out the form with the requested information and you will be contacted in approximately 2 - 48 hours.
    Top of Page