Pros and Cons Explained

Pros

• HUD-approved housing counseling: Cambridge Credit Counseling is approved by the U.S. Department of Housing and Urban Development (HUD) to offer housing counseling, including the classes needed to qualify for some low down payment mortgage options and 澳洲幸运5开奖号码历史查询:down payment assistance programs. 
• Offers student loan counseling: 澳洲幸运5开奖号码历史查询:Student loans are a unique form of debt, and few credit counseling agencies have counselors trained to handle their specific needs. But Cambridge Credit Counseling has a standalone student loan counseling program to help borrowers manage or even eliminate their debt. 
• Excellent customer reviews: Unlike some debt relief companies, Cambridge Credit Counseling has positive customer reviews, with strong ratings at Trustpilot and the Better Business Bureau.

Cons

• No weekend hours: Cambridge Credit Counseling customer support staff are only available Monday through Friday. Other agencies offer weekend hours, which may be more convenient if you have a busy schedule. 
• Dated website: Cambridge Credit Counseling's website is somewhat dated. It also lacks some of the new features other agencies may have, like live chat.
• No mobile app: Although some credit counseling services offer mobile apps that allow you to track the progress of your debt management plan, Cambridge does not.

How Cambridge Credit Counseling Works

As a nonprofit 澳洲幸运5开奖号码历史查询:credit counseling agency, Cambridge Credit Counseling aims to empower consumers with the financial tools and knowledge they need to pay down their debt and improve their finances. For people who can’t pay down their unsecured debt as agreed, Cambridge Credit Counseling has multiple options, including 澳洲幸运5开奖号码历史查询:debt management plans. 

In a DMP, the agency negotiates with your creditors in an att🌞empt to lower interest rates and fees on your existing debt. You make one monthly payment to the agency, and the agency sends 🌺payments to your creditors. Debt management plans typically have enrollment fees and monthly fees.

Thanks to the reduced rates and fees, a debt management plan can make your monthly payments more affordable. You may save money and get out of debt faster than if you paid down your debt on your own. You’ll typically have to close any credit cards included in the DMP, however, which may affect your credit score by increasing your 澳洲幸运5开奖号码历史查询:credit utilization.

Accreditations

Cambridge Credit Counseling is affiliated, ♍certified, or accredited by the following organizations: 

• Financial Counseling Association of America (FCAA)
• National Foundation for Credit Counseling (NFCC)
• Executive Office for United States Trustees (EOUST) for bankruptcy counseling
• U.S. Department of Housing and Urban Development (HUD) for housing counseling
• Better Business Bureau (BBB)

How to Enroll With Cambridge Credit Counseling

1. Contact Cambridge: To enroll in a DMP or other program with Cambridge Credit Counseling, complete the online form or call (800) 235-1407. 
2. Speak with a counselor: You'll talk with a credit counselor who will perform a free debt analysis over the phone and help you determine if a DMP (or another option) is the right path for you. 
3. Cambridge negotiates with creditors: If you move forward with a DMP, Cambridge will spend the first three months of the program negotiating with your creditors. Once they've received confirmations or agreements from your creditors, your counselor will ensure the appropriate accounts are included in the DMP, so your monthly payments can be applied. 
4. Pay off your debts: After the DMP is set up, you’ll continue making payments to the credit counseling agency until the debts are paid in full. Throughout the DMP, your counselor will check in with you and help you stay on track. 

Types of Debt Addressed

If you pursue a DMP with Cambridge Credit Counseling, you should know that only 澳洲幸运5开奖号码历史查询:unsecured debt can be included in the program. Types of de꧟🔯bt allowed in Cambridge’s DMPs include: 

• Credit cards
• Medical bills
• Unsecured personal loans
• Lines of credit
• Unpaid repossession balances
• Disconnected utility bills

Federal student loans and secured loans, like mortgages, are usually excluded from DMPs. However, Cambridge Credit Counseling has special programs for borrowers with those forms of debt, including 澳洲幸运5开奖号码历史查询:federal student loans.

Counseꦕling Services Offered by Cambridge Credit Counseling

Cambridge Credit Counseling has a larger-than-usual number of counseling servicesꦇ and programs. Besides basic credit counseling🤡 and DMPs, it also offers the following programs.

Bankruptcy Counseling

If your debt feels insurmountable and you're considering 澳洲幸运5开奖号码历史查询:filing for bankruptcy, Cambridge Credit Counseling is EOUST-approved to provide online pre-filing and post-filing classes and one-on-one bankruptcy counseling. 

Housing Counseling

Cambridge is HUD-approved to provide housing counseling to existing and prospective homeowners. Cambridge offers courses that satisfy the requirements for some 澳洲幸运5开奖号码历史查询:first-time homebuyer and down payment assistance programs. 

Cambridge is also approved to offer Mortgage Ready, a program for consumers who have been denied a mortgage. Through Mortgage𒆙 Ready, a counselor will work with you to improve your credit and other criteria to improve your odds of being approved for a mortgage within three to six months. 

Reverse Mortgage Counseling

People interested in reverse mortgages must complete a one-on-one counseling session first, and Cambridge is an approved provider of 澳洲幸运5开奖号码历史查询:reverse mortgage counseling. 

Student Loan Counseling

If you have outstanding student loan debt, Cambridge's student loan counseling program will outline available options to manage your debt, such as alternative repayment plans and 澳洲幸运5开奖号码历史查询:loan forgiveness programs.

Expected Cost

Cambridge Credit Counseling is a nonprofit, so it tends to offer low-cost or even free services. Depending on your location, state laws, and household income, you may qualify for reduced fees.

Below are the typical fees for Cambridge's services.

Expected Relief Amount

Although everyone's situation is different, Cambridge says its DMP clients typically reduce their total monthly payments by about 25%, saving them about $140 per month. 

The organization also says it is often successful negotiating with creditors 👍to lower interest rates. On credit cards, rates drop from an average of 2🉐2% to 8%. 

Expected Time to Complete the Program

How long it takes you to complete Cambridge's DMP will depend on your balance, your interest rates, and how much money you can put toward your payments every month. According to the agency, clients take 42 months to eliminate their debt, on average. 

Additional Services

Besides its credit counseling services, Cambridge Credit Counseling offers financial literacy tools. You ꩵcan find free downloadable budgeting worksheets, workbooks designed for childr𒁏en, and debt repayment calculators. 

Client Dashboard

Cambridge Credit Counseling provides a client portal for those using its services. Once yo🅰u open an account, you can use the portal to view your statements and other documents and send messages to customer su🥀pport.

Customer Service

Cambridge Credit Counseling's customer service team can be reached Monday through Friday via phone, email, or social media. 

Customer Satisfaction and Reviews

Cambridge Credit Counseling is well-regarded by its clients, and it has strong reviews. On Trustpilot, it has a TrustScore of 4.9 out of 5 based on about 450 reviews. It has a rating of 4.2 out of 5 with the BBB (with few reviews, however), along with an A+ rating. In reviews, clients say the organization helped them dig their way out of debt, and they praise the organization's communication and responsiveness.

Cambridge Credit Counseling vs. Apprisen vs.🌌 American Consumer Credit Counseling

Is Credit Counseling Worth It?

A debt management plan can be an excellent option if you feel like you're drowning in high-interest unsecured debt, such as medical bills or credit card balances. If you qualify for a DMP, your counselor can help you get out of debt within four years, in most cases, although it may take longer. And while there is no guarantee your creditors will agree to lower rates, you coಞuld potentially save money thanks to reduced rates and waived fees. 

However, credit counseling won't work for everyone. If the balance of your outstanding debt is too large, a DMP may not be realistic. Other options—such as 澳洲幸运5开奖号码历史查询:debt settlement or bankruptcy—may be better for you. 

Is Debt Relief Through Credꦗit Counseling Taxable?

Although a DMP can help you save money thanks to lower rates and fees, your savings aren't 澳洲幸运5开奖号码历史查询:taxable income. A DMP 🥂reduces your interest and fees rather than your principal, so it's different from debt settlement and exempt from taxes (none of the debt is forgiven or canceled). 

The Bottom Line

Cambridge Cr♏edit Counseling has a variety of credit counseling serv🌺ices and excellent client reviews. But it has an outdated website and lacks the mobile features of other agencies, which can be frustrating for those who rely on their phones. 

Before choosing an agency or moving forward with a DMP, read reviews of the agency on consumer review 🍨sites and ask questions🧜 about its fees so you can make an informed decision. 

Frequently Asked Questions (FAQs)

Is Cambridge Debt Relief Legit?

Cambridge Credit Counseling is a legitimate, nonprofit 澳洲幸运5开奖号码历史查询:credit counseling organization. It's a member of both the NFCC and the FCAA, and it's accredited by HUD and the BBB, among other organizations. 🦂;

How Does Cambridge Credit Counseling Affect Your Credit?🍨

If you enroll in a debt management plan with Cambridge Credit Counseling Corp., you'll typically have to close any credit cards included in the plan. As a result, your available credit may decrease, causing your 澳洲幸运5开奖号码历史查询:credit utilization to go up and potentially damage your credit. Credit utilization is one of the most important factors in your FICO credit score; it’s part of the “amounts owed” category, which accounts for 30% of your score.

However, the decrease iജn your credit score can be worth it. And as you make your payments, your credit score may improve.

How Much Does Cambridge Debt Relief Cost?

澳洲幸运5开奖号码历史查询:Debt relief fees vary based on your location and household income, and fee reductions and waivers are possible. Aಌccording to Cambridge Credit Counseling, its DಌMPs have a setup fee as high as $75, and a monthly fee as high as $50. 

Does Cambridge Credit Counselin⛄g Offer Debt Consolidation?

Cambridge Credit Counseling lists debt consolidation on its website, but it isn't the traditional form of debt consolidation that involves taking out a personal loan to pay off your existing debt. Instead, Cambridge Credit Counseling uses “debt consolidation” to refer to its DMPs, because you end up making one payment to Cambridge and the company disburses that money to your creditors. But your debts aren’t actually combined, like with a true 澳洲幸运5开奖号码历史查询:debt consolidation loan. 

How We Determine the Best🌊 Credit Counseling Services

To determine the best credit counseling services, we reviewed various databases, competitive analyses, consumer behavior, and more, ultimately narrowing down the list to 40 compani♛es, including 17 companies that offer credit counseling services t♈hat include debt management plans. We developed a quantitative model where we identified 53 important criteria across five categories. We weighted each category as follows for this article:

• Costs and fees: 37.00%
• Availability: 19.50%
• Reputation and stability: 18.50%
• Customer experience: 9.00%
• Services: 16.00%

We then gathered data for the 53 criteria directly from companies via websites, media contacts, and existing partnerships. Data were collected between Oct. 19, 2023, and Dec. 18, 2023. This resulted in over 2,000 data points in our rubric, which we used to score and determine the best debt relief companies (including debt settlement an🌄d credit counseling services) for people looking to manage and get out of debt.

To learn more about our process for finding the best debt relief companies, read our 澳洲幸运5开奖号码历史查询:full methodology.