Cambridge Credit Counseling is a non-profit debt relief agency that only has a goal of helping get people out of debt quickly and as easily as possible and to keep them out of debt the rest of your life. In this article, we will take a deeper look into what Cambridge credit counseling actually does and how they help people. If you would like to retire by the time you’re 37, keep reading, as we discuss different benefits and risks that Cambridge Credit Counseling offers to help get you debt free forever.
What is Cambridge Credit Counseling?
Cambridge Credit Counseling is a credit counseling service that breaks down your credit profile and teaches you different options and opportunities to help get your credit exactly where you would like it to be. In order to fill out your application for a free debt analysis, you must fit into certain criteria. Most people have credit card debts that average about $15,000.
On an average, after Cambridge Credit Counseling reviews everything on your credit profile, they are usually able to get their clients’ interest rates lowered by an average of 14 points – down from 22 percent to eight percent. The drop in these interest rates usually saves clients an average of $142 a month. Usually these can be paid off in a little over four years.
How it Works
Once you become a client, Cambridge Credit Counseling reviews your financial profile and they will consolidate all of your debts into one convenient payment that you will pay to them. Next, they will send out individual payments to the creditors that you have linked to your credit profile in their system. Cambridge Credit Counseling will begin a Debt Management Plan, or DMP, for your creditors.
This is a repayment program that helps you pay your debt in a specific timeframe that will not be stressful or costly to you. Cambridge Credit Counseling reviews your former payments with your creditors and together they build the DMP that is specific to them. After this, all you pay Cambridge Credit Counseling is one affordable monthly payment. Most of the time, creditors will give you the option to except a variety of new benefits when they see that you’ve enrolled in credit counseling.
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To qualify for a debt management plan, you will need to meet with of Cambridge’s nationally-certified credit counselors. This one-on-one meeting will give the counselor access to look over your income, expenses, and other factors and give you your options for being free of debt. Usually, if the counselor sees that you won’t be able to pay off your unsecured debts without some grace from your creditors, despite having a good income, they will recommend that you begin a debt management plan. They will not offer this option to you if the Cambridge Credit Counseling reviews do not deem that this is necessary.
Once your DMP is made for each of your creditors, your payment process will begin. The repayment process will probably take between four to five years to complete. When Cambridge Credit Counseling reviews the repayment process, clients usually see an average of 64 percent in reduction of their interest rates. This saves their clients around 25 percent in their payment costs. Cambridge Credit Counseling’s initial fee is $75 and the monthly fee is $50. These fees are capped, meaning you’ll pay no more than these costs. However, on average their clients see initial fees of $40 and monthly fees of just $25.22.
Benefits of Using Cambridge Credit Counseling
When you decide to let Cambridge Credit Counseling review your finances, you are opening up many different doors to certain benefits that can only be acquired by using a credit counseling service. These benefits have been proven to help you get out of debit faster and in turn actually help you save money up while you are completing this process.
Usually, when a creditor sees that you have applied for credit counseling, they will extend the most significant benefits that they have to offer because they see that you are attempting to try and make your payment. These benefits, which are usually a reduction in interest rates or making your past payments your current payments, will help you continue to pay down your debts or to save as much as possible. There are many other benefits, and credit counselors will usually discuss these at your free consultation.
What Are the Risks?
Cambridge Credit Counseling is a non-profit credit counseling agency, and sometimes people think that “non-profit” means that the services will be free. That is simply not the case. You will still be required to pay certain fees and certain services. When working with non-profit credit counseling agencies, there are some things that are good, and things that are not so good. Getting budgeting help will not affect your credit history or your credit score, either. However, signing up for a debt management program will have an effect.
The DMP will be responsible for managing your credit and the payments associated with it while you’re a part of the program. With a DMP being printed on your credit report, this will lower your credit score until you have paid the debt off. Even after the program is completed, some lenders may still view you as a risk because they’ve seen that you have had trouble with making payments before.
Lastly, sometimes credit counseling just does not work. Usually, people will begin a debt management program, but about half of the time, they do not finish the program all the way through. They think that once things start looking up and they are managing to make the correct payments again, that they can stop their program. They often fall right back into the same trouble that got them in debt in the first place, too.
Credit counseling services are not for everyone. There are certain situations in which credit counseling will benefit a financial situation instead of hurt the situation. Credit counseling should only be considered if you are in one of these certain situations.
- If you are a hard worker, but you are still struggling to meet monthly payments, such as your mortgage or credit cards, and you have been considering bankruptcy. Since bankruptcy should be anyone’s absolute last resort, reaching out for Cambridge Credit Counseling would be a great idea.
- If you have recently been turned down for a consolidation loan for unsecured debt. In this situation, you should let Cambridge Credit Counseling review the reason why you were turned down and then begin a debt management plan through their financial counselors.
- If you and your spouse are considering purchasing a house. It is an awesome idea to let Cambridge Credit Counseling review your finances and provide counseling before you purchase.
- If you are struggling with debt in general, Cambridge Credit Counseling’s counselors will help you sift through the debt you have accumulated and help you avoid scams that would be detrimental to your credit.
If you are considering any kind of financial counseling, whether it be for credit card consolidation or debt consolidation, contact them at Cambridge Credit Counseling. It is their goal to get you debt free quickly and easily. Contact them to schedule your free debt analysis by completing the form on their website.
You may also give them a call at (800) 235-1407 for new inquiries and (800) 527-7595 for client services. You will get to speak with their certified counselors to figure out if a debt consolidation would be appropriate for your situation.
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Cambridge Credit Counseling is a non-profit credit counseling agency that will do everything in their power to help you get in control of your finances and make sure you are never in debt again. Cambridge Credit Counseling reviews your financial situations with no judgment and offers options to help remedy your situation. If you are in a situation, it would be a really great idea to give them a call and see what they can do for you. If you have any questions, thoughts, or just want to share your Cambridge Credit Counseling reviews, we’ll listen! Leave us a comment below!