Consolidated Credit Review [2024]

If your debt has grown to be unmanageable, you’re not alone. It may feel like there’s no way out of your financial problems, but help is available in many forms. Consolidated Credit is a nonprofit credit counseling agency that may be able to help you, through its credit counseling and debt management plans.

While it’s a very well-known agency with good reviews, it’s important to make an informed decision when it comes to signing up for any type of debt relief. In this Consolidated Credit review, we’ll provide more information about the services the agency offers, how much it charges, how much you can save, and whether it’s worth signing up for their program.

How does Consolidated Credit work?

Consolidated Credit is a nonprofit credit counseling agency that provides financial education, credit counseling, and programs to help you get out of debt. You can get a free credit counseling session with a certified credit counselor to start.  

Depending on your specific financial situation, your counselor may recommend options such as debt management plans (DMPs), debt settlement programs, or debt consolidation.

A debt management plan (DMP) can organize and consolidate payments on multiple unsecured debts, but it doesn’t require taking out a new loan, so it's accessible for those with bad credit. Your counselor can also negotiate with your lenders to reduce your standard interest rates and waive late fees.

Once you’re enrolled in their DMP program, you’ll make a single monthly payment to Consolidated Credit, which will be proportionately distributed to your lenders according to how much you owe to each of them. You’ll continue making payments for three to five years to eventually become debt-free.

Pros and Cons of Consolidated Credit

While Consolidated Credit may be a good option for those who want financial education and budgeting, there are also a few drawbacks you may want to keep in mind.

Pros of Consolidated Credit

• Free credit counseling and advice from trained credit professionals
• Customer service is available through live chat, email, and by phone
• The company has earned multiple accreditations and certifications
• DMPs are accessible to all types of borrowers, even those with bad credit

Cons of Consolidated Credit

• There are no guarantees when it comes to results
• DMPs are not free. You’ll need to pay a one-time set-up fee and a monthly fee for each account you enroll in the program
• Customer support is only available during weekdays

Services Offered by Consolidated Credit 

While debt management is its main offering, Consolidated Credit also offers a wide range of other services:

• Credit Counseling: During your first credit counseling session, your counselor can analyze your income, debt, and other financial information to determine the right debt relief option for you.
• Debt Management: If you have a lot of unsecured debts like medical debt, payday loans, personal loans, and credit cards, debt management programs can make it easier to repay them with a single monthly payment.
• Homebuyer Counseling: Pre-purchase housing counseling can help you determine your budget and come up with a personalized home-buying plan so you can make a truly well-informed decision.
• Foreclosure Prevention Counseling: Consolidated Credit helps you understand your options to avoid foreclosure, such as utilizing the Hardest Hit Fund. If there are no other options, it also offers support to ensure the foreclosure process is completed successfully.
• Reverse Mortgage Counseling: Consolidated Credit offers financial education to help you understand how reverse mortgages work and if it’s the right option for you.

Costs and Fees

Although credit counseling is free, debt management plans aren’t. The Uniform Debt Management Services Act of 2005 works to ensure that the prices charged by nonprofit credit counseling agencies are fair and consistent with applicable laws.

While the DMP program fees charged per month may vary based on state laws, they can never exceed $79. On average, clients enrolled in Consolidated Credit’s debt management plans pay approximately $40/month, which is typically rolled into their monthly program payments.

Time To Complete the Program

It usually takes three to five years to complete payments through a DMP and become debt-free. Keep in mind that this timeframe can vary based on the monthly payments you can afford and your debt amount. Not all creditors may be willing to participate in the DMP, which can also impact the timeframe.

Expected Relief Amount

When you enroll in a DMP, the credit counseling agency can negotiate with your lenders to lower your interest rates. Consolidated Credit claims that clients can expect their interest rates to be reduced to 0-11% on average.

The average interest rate for credit cards stands at 24.84% as of August 2024, so enrolling your credit card debt in a DMP can help you save a considerable amount of money if your creditors are willing to negotiate. However, you’ll still need to pay off the entire debt you own, unlike debt settlement, where you may be able to lower your debt amounts by up to 50%.

Customer Service Options

Consolidated Credit offers a number of customer service options, such as email, phone, live chat, and a members portal for existing clients.

Credit Counseling

Phone Number: 844-285-9318 (Monday to Thursday: 8 AM to 10 PM, Friday: 8 AM to 8 PM, Saturday: 9 AM to 5 PM)

Email: counselor@consolidatedcredit.org

Housing Counseling

Phone Number: 1-800-435-2261 (Monday to Friday: 8 AM to 5 PM)

Email: HousingCounseling@consolidatedcredit.org

Existing Clients

Phone Number: 1-877-201-7780 (Monday to Thursday: 8:30 AM to 8 PM, Friday: 9 AM to 5 PM)

Address

5701 West Sunrise Blvd. Fort Lauderdale, FL 33313

Consolidated Credit Reviews and Feedback

Consolidated Credit is certified by the U.S. Department of Housing and Urban Development (HUD) as a pre-purchase homebuyer counselor. It is also a member of the Financial Counseling Association of America (FCAA) and the National Foundation for Credit Counseling (NFCC). The organization is also accredited by the Better Business Bureau (BBB).

Consolidated Credit has a good track record of helping borrowers and maintains many positive reviews on multiple customer ratings platforms. Here’s a closer look at what we found when analyzing the agency's reviews on multiple websites.

Consolidated Credit Reviews on Better Business Bureau

Consolidated Credit is BBB-accredited and has an A+ rating on the platform. While there are no reviews for Consolidated Credit, we were able to find a separate BBB page for Consolidated Credit Solutions, which is a part of this same firm.

Consolidated Credit Solutions has 4.93/5 stars from 253 reviews as of August 2024. While there are very few negative reviews for the agency on the BBB’s website, the ones we found highlighted an unexpected drop in credit scores. Here’s one such review we found:

“Took my money, did not pay my creditor, tanked my credit rating, and will not issue me a refund. I've talked to so many reps that have assured me they'll fix this, yet it’s been months and nothing has happened.”

A majority of the reviews online are positive, such as this one:

“I needed debt relief, did some Google research and went with Consolidated Credit Solutions, BEST decision I've ever made because I've now paid it all off! Need debt relief? Go with Consolidated Credit Solutions!! They answer the telephone, they do it all for you and will answer any and all questions you may be concerned with. Give them a call today, I did four years ago and they helped me, that day!!”

Consolidated Credit Reviews on Trustpilot

Consolidated Credit has 4.7/5 stars from 9,055 reviews on Trustpilot. 80% of these reviews have a 5-star rating, while less than 1% have a one-star rating.

The negative reviews on Trustpilot highlight communication issues with the team and unsatisfactory results from the DMP. Here’s one such review:

“I’ve been working with this company and most of their employees want to do minimum to no work at all. They’re supposedly in contact with my creditors, but can’t ask for the current balance on the account?! Asked me to update each account which are about 8 in total. I’m paying for a service and I still need to do extra work!”

On the other hand, the positive reviews mention the friendly and helpful customer service and clear communications.

“So far everything is great. I had an issue but Consolidated Credit handle it in a very timely manner and resolved my issues that same day. Everyone has been helpful, courteous, and knowledgeable. I feel due to Consolidated Credit I can get control of my debt situation and I am excited to be working with Consolidated Credit.”

How Consolidated Credit Compares To Other Credit Counseling Agencies 

With so many credit counseling agencies offering DMPs, it's important to compare your options and pick one that fits your financial needs. Here’s how Consolidated Credit compares to its competitors.

Is Consolidated Credit Worth It?

Consolidated Credit is an accredited and highly-reviewed credit counseling agency that has been providing financial advice and helping clients resolve their debts since 1993. If you’re looking for a way to lower your interest rates and become debt-free in three to five years, enrolling in the agency’s DMP can be a good idea.

Keep in mind that there are several other debt-relief options available, such as debt consolidation loans and debt settlement. Learn more about how these programs work to determine which type of debt relief will be the most effective for your financial goals.