Looking for honest experiences with American Consumer Credit (ACC) or Freedom Debt Relief. Considering these options right now. Any advice?
These two work differently. ACC focuses on helping you budget and pay off your debt fully, while debt relief means paying less than what you owe but could temporarily lower your credit score. It depends on your situation. If you’re barely managing minimum payments, debt relief might help. Otherwise, counseling might be better.
I used Freedom Debt Relief and had a positive experience. My credit score dropped at first, but after around nine months, they offered me a personal loan to clear all accounts, and my score started improving.
I’d recommend credit counseling over debt relief or settlement.
Lyle said:
I’d recommend credit counseling over debt relief or settlement.
This is such good advice. Here’s a link explaining why: https://www.thisforum.com/r/Debt/comments/1h1srwl/comment/lzi445v/
ACC can negotiate lower interest rates, which reduces payments by 25-30%. You might be able to do this yourself by asking your credit card company for a hardship program.
Jory said:
ACC can negotiate lower interest rates, which reduces payments by 25-30%. You might be able to do this yourself by asking your credit card company for a hardship program.
Not sure why you’re being downvoted. I started with ACC a couple of months ago, and it’s been great. My interest rates dropped from 29% to around 5-9%, and my monthly payments went from $1,000 to $234! I’ll be debt-free in about four years. It’s such a relief!
@Marlo
Same here! My rates dropped to 9%, and I’ll have everything paid off in under three years instead of decades.
@Marlo
Can you just call your credit card company directly for this, or do you need to go through a group like ACC? I’m stuck paying huge amounts with no progress and need help.
Nyx said:
@Marlo
Can you just call your credit card company directly for this, or do you need to go through a group like ACC? I’m stuck paying huge amounts with no progress and need help.
Yes, you can call your credit card company and ask about their hardship programs. Some might decline, but it’s worth a try. ACC is non-profit and charges small fees if you go that route. Good luck!
@Marlo
Thanks! I’ll try on my own first, but it’s good to know ACC isn’t expensive as a backup.
As a lawyer (not your lawyer), I’d caution against paying a company to negotiate settlements for you. These companies often overpromise and underdeliver. Creditors like Chase don’t usually settle big debts for less, and any savings could come with fees. You might end up ruining your credit and still facing lawsuits. Bankruptcy might be a better option for some situations.
The Consumer Financial Protection Bureau won a case against Freedom Debt Relief for misleading practices. Here’s the link: https://www.consumerfinance.gov/enforcement/payments-harmed-consumers/
ACC is backed by the National Foundation for Credit Counseling, which seems more reliable. Make sure you check for scams and understand the differences between credit counseling and debt relief programs. Debt relief could even lead to lawsuits or tax implications for forgiven debt.