Debt Management Solutions with ACCC

Debt Management Solutions with ACCC

debt management solutionsFinancial crises can happen to anyone at any stage of life, which can be frightening. When creditors are calling about late payments and you are stuck settling credit card debt, you worry about your future. But regardless of your situation, debt management solutions can ease your burden.

Some Debt Management Solutions with ACCC

ACCC offers a number of debt management solutions. These range from self-administered programs to bankruptcy. The types of solutions you qualify for depends on a number of factors. Some include:

  • How much money you owe
  • Your credit rating
  • Your ability to pay

The most common forms of debt management solutions are:


This is where you, the debtor, takes control of spending by setting up a budget and contacting creditors directly to make arrangements for paying off credit cards. Generally, taking matters into your own hands would happen before your debt gets out of control and you aim to nip the problem in the bud. If your financial situation spirals out of control to the point where you feel overwhelmed, it may be time to seek professional help.

Debt consolidation

Sometimes if your credit rating is suitable, you can consolidate your unsecured debt with home equity line or second mortgage. This option is risky because if you fall behind on your payments, you might lose your home. A safer option is a debt consolidation program through an accredited credit counseling agency (also known as a debt management program or DMP). A DMP consolidates your debt without requiring any additional borrowing. It also provides helpful debt management advice in the form of counseling and educational resources.

Debt reduction/Debt settlement

In a debt reduction service, also known as debt settlement, for-profit organizations negotiate settlements with your creditors. Typically, these arrangements require you to pay a lump sum on a balance that is less than the full amount you owe. While debt settlement programs may appear to be a good option for debt consolidation relief, it isn’t for everyone. The negotiated lump sum is due in full when the debtor signs an agreement, and creditors are not obligated to honor the terms of the settlement. The settlement also is harmful to your credit rating and you in most cases have to pay taxes on the debt that has been forgiven.


Of all of the debt management solutions, filing for bankruptcy should be considered as a last resort, because it causes further hardships. A bankruptcy is on your credit report for 10 years and can cause problems in getting credit or a job. Many employers check candidates’ credit records and make hiring decisions based on their credit records. Check out some more things to know before filing bankruptcy.

Need More Info on Debt Management Solutions? Speak with a certified counselor at ACCC today! Call 800-769-3571. 


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