In the event you’re in search of cash administration assist over the cellphone or on-line, Cambridge Credit score Counseling Corp. is perhaps the company for you.
The Massachusetts-based nonprofit credit score counseling company provides a wide range of credit score counseling providers over the cellphone in all 50 states.
Cambridge could also be a superb match for those who:
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Want counseling providers over the cellphone.
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Need free on-line academic assets.
Cambridge’s providers and charges
Cambridge supplies widespread providers accessible at most nonprofit credit score counseling businesses. The distinction between one company and the following typically comes all the way down to value and accessibility. These providers embody:
Basic budgeting and recommendation: A free service the place you and a counselor run by your price range and analyze your general funds.
Debt administration plan: A counselor creates a plan to consolidate your shopper money owed and decrease the rate of interest, organising one month-to-month fee to erase the debt over three to 5 years.
Chapter counseling: Two court-mandated periods — one earlier than you file and one earlier than your money owed are discharged.
Pupil loans: A counselor outlines your reimbursement choices, provides methods for reimbursement and helps design a price range.
Housing counseling: Assist for dwelling consumers, owners contemplating a reverse mortgage and other people combating mortgage or hire funds.
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Service |
Price |
|---|---|
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Basic budgeting and recommendation |
Free. |
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Debt administration plan |
Startup and month-to-month charges fluctuate by state. Common startup price is $40; common month-to-month price is $32. Preliminary and month-to-month charges are capped at $100 and $75, respectively. |
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Chapter counseling |
Pre-filing: $25. Pre-discharge: $25. |
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Pupil loans |
Free overview of pupil loans and reimbursement choices. Extra superior help varies primarily based on monetary scenario, however typically prices $39.95 or much less per thirty days with a most of $195 in whole. |
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Housing counseling |
Free to $125, relying on the service. |
How Cambridge compares
Most credit score counseling businesses provide the identical providers. How they differ typically comes all the way down to the place and the way they provide these providers. Here is how Cambridge stacks up.
Accreditation: Cambridge is a member of the Monetary Counseling Affiliation of America, an outdoor physique that ensures requirements of follow amongst counselors and oversight of the company. It requires its counselors to keep up certification by the Nationwide Basis for Credit score Counseling.
On-line assist: Shoppers can entry their accounts on-line, and Cambridge’s web site features a vary of monetary training assets and instruments.
Completion fee: Cambridge reviews that 61.3% of purchasers who enroll in a debt administration plan with the corporate full this system.
Availability: The company operates in all 50 states.
Cambridge’s debt administration plan
In case your debt is generally from bank cards, a debt administration plan might help you get a deal with on what you owe. You possible received’t be capable of use bank cards or open new strains of credit score throughout this time.
Below a DMP, your numerous money owed are rolled into one month-to-month fee with reduce rates of interest. In return, you conform to a set fee plan, often for 3 to 5 years. Observe that rate of interest cuts are standardized throughout credit score counseling businesses, primarily based in your collectors’ tips and your price range.
Relying on the yr, between 21% and 35% of Cambridge purchasers use DMPs. Right here’s a breakdown of how a median DMP at Cambridge compares with a DIY debt payoff:
|
DMP |
DIY debt paydown |
|---|---|
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$18,123 debt. |
$18,123 debt. |
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8% rate of interest. |
22.7% rate of interest. |
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$532 month-to-month fee. ($500 goes to debt, $32 to program price.) |
$532 month-to-month fee. |
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42 months to repay. |
56 months to repay. |
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$2,691 paid in curiosity, $1,384 paid in charges.* |
$11,231 paid in curiosity. |
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*Figured on the common $32 month-to-month price plus the common $40 startup price. |
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Observe: In a debt administration plan, particular person collectors provide the identical adjusted APR for all credit score counseling businesses. The distinction in common APR amongst credit score counseling businesses is a mirrored image of their purchasers’ collectors and doesn’t point out one company will provide decrease adjusted APRs than one other.
When to contemplate a DMP
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In the event you’re struggling to make month-to-month funds on debt.
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In case your shopper debt is greater than 36% of your annual revenue or higher.
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In the event you don’t qualify for a debt consolidation mortgage.
DMPs aren’t for everybody. Mortgages, automotive loans, most medical payments and pupil loans are typically not lined in such a plan.
Use this calculator to discover your debt reduction choices
