Cambridge Credit Counseling Corp

THE ORGANIZATION SPECIALIZES IN PROVIDING EDUCATION AND COUNSELING SERVICES TO INDIVIDUALS AND GROUPS WHO ARE CONCERNED ABOUT THEIR FINANCIAL SITUATION. IF APPROPRIATE, THE ORGANIZATION ALSO HELPS INDIVIDUALS ESTABLISH AFFORDABLE AND CONVENIENT DEBT MANAGEMENT PLANS TO HELP THEM REPAY THEIR DEBTS IN A TIMELY MANNER. AS A HUD-APPROVED HOUSING COUNSELING AGENCY, THE ORGANIZATION ALSO PROVIDES PRE- AND POST-PURCHASE COUNSELING, RENTAL AND REVERSE MORTGAGE COUNSELING, AND FORECLOSURE INTERVENTION AND DEFAULT COUNSELING. THE ORGANIZATION HAS ALSO BEEN APPROVED BY THE EXECUTIVE OFFICE FOR U.S. TRUSTEES TO PROVIDE PRE-FILING CREDIT COUNSELING AND PRE-DISCHARGE DEBTOR EDUCATION TO CONSUMERS FILING FOR BANKRUPTCY PROTECTION.

SEE SCHEDULE OINDIVIDUALIZED EDUCATIONAL FINANCIAL COUNSELING CAMBRIDGE'S TAX-EXEMPT STATUS IS BASED ON THE PROVISION OF FINANCIAL EDUCATION TO THE PUBLIC. THE ORGANIZATION'S PRIMARY METHOD OF FULFILLING THIS EXEMPT PURPOSE WAS ACCOMPLISHED THROUGH THE PROVISION OF 31,625 INDIVIDUAL EDUCATIONAL FINANCIAL COUNSELING SESSIONS. CAMBRIDGE PROVIDES FINANCIAL COUNSELING, EDUCATION, AND DEBT MANAGEMENT PROGRAMS TO INDIVIDUALS IN 50 STATES. EVERY INDIVIDUAL WHO REQUESTS ASSISTANCE FROM THE ORGANIZATION IS GIVEN THE OPPORTUNITY TO PARTICIPATE IN A COMPREHENSIVE EVALUATION OF HIS OR HER FINANCIAL CIRCUMSTANCES, CONDUCTED BY ONE OF THE ORGANIZATION'S FORTY-ONE INDEPENDENTLY CERTIFIED CREDIT COUNSELORS. CAMBRIDGE'S COUNSELORS ARE CERTIFIED BY THE NATIONAL FOUNDATION FOR CREDIT COUNSELING AND/OR THE PARTNERSHIP FOR FINANCIAL EDUCATION, WHOSE CERTIFICATION PROGRAMS HAVE BEEN REVIEWED AND APPROVED BY THOSE STATES THAT REQUIRE APPROVAL OF COUNSELOR CERTIFICATION PROGRAMS. CAMBRIDGE'S FINANCIAL ANALYSIS IS AIMED AT IDENTIFYING THE BEST COURSE OF ACTION FOR EACH INDIVIDUAL, ALLOWING THE CAMBRIDGE COUNSELOR TO PROVIDE EDUCATION AND BUDGETING INFORMATION APPROPRIATE TO EACH PERSON'S CIRCUMSTANCES. THIS ASSESSMENT, WHICH IS PERFORMED AT NO COST AND WITHOUT OBLIGATION, IS BASED ON STATUTORY REQUIREMENTS FOR IDENTIFYING AN INDIVIDUAL'S CURRENT FINANCIAL CONDITION, AND, WHEN NECESSARY, APPROPRIATE TECHNIQUES ARE USED TO DISCOVER THE FACTORS AND BEHAVIORS THAT MAY BE CONTRIBUTING TO THE INDIVIDUAL'S CIRCUMSTANCES. TO HELP ENSURE THAT ALL DEBTS ARE DISCUSSED AND TO VERIFY THE ACCURACY OF THE ACCOUNT INFORMATION PROVIDED, CAMBRIDGE HAS ESTABLISHED AN ARRANGEMENT WITH TRANS UNION THAT ALLOWS CAMBRIDGE COUNSELORS TO REVIEW EACH INDIVIDUAL'S CREDIT REPORT AT NO COST TO THE INDIVIDUAL. ON THE BASIS OF THE INFORMATION DEVELOPED DURING THE COUNSELING SESSION AND THROUGH DOCUMENTATION OF INCOME AND EXPENSES, AN APPROPRIATE ACTION PLAN WILL BE CREATED AND PROVIDED TO THE INDIVIDUAL. IF A FINANCIAL ASSESSMENT INDICATES THAT THE CONSUMER WOULD NOT REASONABLY BE ABLE TO ALLEVIATE HIS OR HER DEBT WITHOUT SIGNIFICANT CREDITOR CONCESSIONS, CAMBRIDGE WILL OFFER THE OPTION OF ENROLLING IN ITS EDUCATIONAL DEBT MANAGEMENT PLAN ("DMP") TO HELP THE INDIVIDUAL ESTABLISH AN AFFORDABLE AND CONVENIENT PLAN TO REPAY HIS OR HER CURRENT DEBTS IN A TIMELY MANNER. IF, ON THE OTHER HAND, CREDITOR CONCESSIONS ARE UNLIKELY OR UNNECESSARY UNDER THE INDIVIDUAL'S CIRCUMSTANCES, THE COUNSELOR WILL ADVISE THE INDIVIDUAL OF ANY OTHER APPROPRIATE STEPS THAT HE OR SHE MAY TAKE TO ADDRESS HIS OR HER FINANCIAL CONDITION. REGARDLESS OF THE INDIVIDUAL'S ENROLLMENT, HOWEVER, ALL CONSUMERS ARE ENCOURAGED TO PARTICIPATE IN POST-COUNSELING SESSIONS WITH CAMBRIDGE COUNSELORS, AND THEY ARE ALSO PROVIDED WITH THE MOST CURRENT EDITIONS OF CAMBRIDGE'S FREE FINANCIAL MANAGEMENT GUIDES, WHICH THE PUBLIC MAY ALSO ACCESS FOR FREE ON CAMBRIDGE'S WEBSITE, WWW.CAMBRIDGECREDIT.ORG.BETWEEN 7/1/2021 AND 6/30/2022, CAMBRIDGE PROVIDED 31,625 INDIVIDUAL COUNSELING SESSIONS. OF THE ROUGHLY 17,242 INDIVIDUALS WHO CONTACTED THE AGENCY FOR THE FIRST TIME, 2,920 (APPROXIMATELY 16.94%) ENROLLED IN CAMBRIDGE'S DEBT MANAGEMENT PROGRAM. FOR THESE INDIVIDUALS, DMP ENROLLMENT IS ONLY ONE ASPECT OF CAMBRIDGE'S EDUCATIONAL COUNSELING PROGRAM.AS THE CONSUMER FEDERATION OF AMERICA, AMERICAN EXPRESS, AND THE GEORGETOWN UNIVERSITY CREDIT RESEARCH CENTER NOTED IN A JOINT 2006 REPORT ENTITLED "EVALUATING THE EFFECTS OF CREDIT COUNSELING" (THE "CFA REPORT"), EFFECTIVE DEBT MANAGEMENT PLANS CONTAIN A MEANINGFUL EDUCATIONAL COMPONENT. THE EFFECT OF THIS EDUCATION WAS EVIDENCED BY "SIGNIFICANTLY IMPROVED CREDIT PROFILES AND A REDUCED RISK OF BANKRUPTCY FILING, WHICH THE REPORT ATTRIBUTED TO "THE DMP EXPERIENCE ITSELF, E.G., BUDGETING TO MAKE REGULAR DMP PAYMENTS, CONTINUED INTERACTION WITH AND REINFORCEMENT FROM THE COUNSELING AGENCY." CAMBRIDGE'S POLICY OF ESTABLISHING POST-COUNSELING FOLLOW-UP CONTACT WITH ALL CONSUMERS WHO RECEIVE A FINANCIAL ASSESSMENT AND BUDGET REVIEW IS CONSISTENT WITH THE CONCLUSIONS OF THE CFA REPORT: PARTICIPATION IN A DEBT MANAGEMENT PLAN PROVIDES AN EDUCATIONAL BENEFIT FOR THE INDIVIDUAL, PARTICULARLY WHEN CONTACT WITH THE COUNSELOR IS EXTENDED THROUGHOUT THE PERIOD OF ENROLLMENT. THE DATA COLLECTED THROUGH CLIENT SURVEYS SUPPORTS THIS APPROACH. ALTHOUGH A DMP CAN BE INSTRUMENTAL IN HELPING PEOPLE BECOME DEBT-FREE IN FIVE YEARS OR LESS, ENROLLMENT ALONE DOES NOT PREVENT THEM FROM REVERTING TO PREVIOUS BEHAVIORS, ATTITUDES AND SPENDING PATTERNS THAT RESULTED IN THE NEED TO CONTACT A COUNSELING AGENCY. FOR THIS REASON, CAMBRIDGE PERIODICALLY CONTACTS CLIENTS AND CONSUMERS AFTER THEIR INITIAL SESSIONS TO OFFER ADDITIONAL COUNSELING.THE GOAL OF THE POST-COUNSELING PROGRAM IS TO DETERMINE WHETHER OR NOT THE INDIVIDUAL HAS BEGUN TO FOLLOW HIS OR HER ACTION PLAN, TO OFFER ENCOURAGEMENT AND ADVICE TO HELP THEM TAKE THE STEPS THAT HAVE BEEN RECOMMENDED, AND TO OFFER ADDITIONAL COUNSELING FOR ANY ISSUES THAT MAY NOT HAVE BEEN INTRODUCED PREVIOUSLY. EACH PARTICIPANT WILL RECEIVE A FINANCIAL CHECKUP FROM HIS OR HER COUNSELOR EVERY SIX MONTHS FOR THE DURATION OF THEIR ENROLLMENT IN THE PROGRAM. IN ADDITION TO ADDRESSING THE PARTICIPANT'S PARTICULAR ISSUES, THESE FOLLOW-UP CALLS CONTINUE BUILDING THE PARTICIPANT'S FINANCIAL SKILLS BY EMPHASIZING THE NEED TO CREATE AND FOLLOW WORKING BUDGETS, TO RECORD ALL EXPENSES, TO IMPLEMENT APPROPRIATE SAVINGS PLANS, AND TO DEVELOP REALISTIC SHORT- AND LONG-TERM FINANCIAL GOALS.WITHIN 45 DAYS OF THE INITIAL REQUEST FOR ASSISTANCE, CAMBRIDGE COUNSELORS ALSO CONTACT EACH INDIVIDUAL WHOSE FINANCIAL ASSESSMENT INDICATED THAT DMP ENROLLMENT WOULD EITHER NOT BE NECESSARY OR FOR WHOM CREDITORS WOULD BE UNLIKELY TO GRANT MEANINGFUL CONCESSIONS. THIS IS DONE TO VERIFY THAT THE INDIVIDUAL HAS RECEIVED ALL OF THE FREE EDUCATIONAL MATERIALS PROVIDED BY CAMBRIDGE AND, MORE IMPORTANT, THAT THE INDIVIDUAL HAS BEGUN TO UTILIZE THE TOOLS AND ADVICE THAT HIS OR HER COUNSELOR PROVIDED IN THE INDIVIDUAL'S ACTION PLAN. THE CONSUMER IS ENCOURAGED TO ACCESS THE COMPANY'S EDUCATIONAL WEBSITES AND TO CONTINUE TO USE HIS OR HER COUNSELOR AS A FINANCIAL EDUCATION RESOURCE, AT NO COST OR OBLIGATION.THE IMPACT OF CAMBRIDGE'S PROGRAM HAS BEEN SIGNIFICANT. CAMBRIDGE'S MOST RECENT STATISTICS INDICATE THAT MORE THAN 85% OF NEW PROGRAM PARTICIPANTS HAVE BEGUN TO TRACK EXPENSES AND DEVELOP NEW BUDGETS BY THEIR FOURTH MONTH OF ENROLLMENT, TAKING THE FIRST STEPS TOWARD RE-ESTABLISHING A POSITIVE PAYMENT HISTORY. THIS OFTEN REPRESENTS A REMARKABLE ACCOMPLISHMENT FOR THESE INDIVIDUALS, WHOSE CREDIT REPORTS SHOW EVIDENCE THAT THEIR RECORD OF INCONSISTENT PAYMENTS RESULTED IN THE HIGHER INTEREST RATES AND LATE FEES THAT COMPOUNDED THEIR FINANCIAL DIFFICULTIES. PERHAPS EVEN MORE INDICATIVE OF THE RESULTS OF CAMBRIDGE'S POST-COUNSELING PROGRAM ARE THE SURVEY RESPONSES GATHERED THROUGH IOTA SOLUTIONS, AN UNAFFILIATED THIRD PARTY, WHICH INDICATE THAT MORE THAN 88% OF LONG-TERM PROGRAM PARTICIPANTS CONTINUE TO TRACK THEIR EXPENSES, WHILE NEARLY 74% REVIEW THEIR BUDGETS EVERY SIX MONTHS.WHILE THESE SERVICES ARE VERY BENEFICIAL TO INDIVIDUALS WHO DECIDE TO ENROLL IN THE PROGRAM, CAMBRIDGE HAS ALSO DEVELOPED EDUCATIONAL TOOLS AND PROGRAMS FOR INDIVIDUALS WHO DO NOT ENROLL IN THE CAMBRIDGE DMP PROGRAM. FROM JULY 2021 TO JUNE 2022, CAMBRIDGE PROVIDED SESSIONS FOR 14,322 INDIVIDUALS WHO DID NOT ENROLL IN CAMBRIDGE'S DMP. THESE CONSUMERS WERE AMONG THE MORE THAN 110,000 INDIVIDUALS WHO RECEIVED OR DOWNLOADED COPIES OF FREE EDUCATIONAL MATERIALS FROM CAMBRIDGE THE YEAR, INCLUDING GUIDEBOOKS, RELEVANT ARTICLES ABOUT PERSONAL FINANCE, AND LINKS TO THE AGENCY'S EDUCATIONAL VIDEOS.

SEE SCHEDULE OFINANCIAL LITERACY EDUCATION CAMBRIDGE OFFERS NO-COST FINANCIAL MANAGEMENT EDUCATION TO INDIVIDUALS IN A NUMBER OF DIFFERENT WAYS. CAMBRIDGE PROVIDES OUTREACH PROGRAMS TO MEMBERS OF ITS LOCAL COMMUNITY, INCLUDING A SIGNIFICANT NUMBER OF NON-PROFIT SOCIAL SERVICE AGENCIES. CAMBRIDGE ALSO OFFERS FINANCIAL MANAGEMENT SEMINARS AND LESSON PLANS TO COLLEGES AND HIGH SCHOOLS, BOTH LOCALLY AND NATIONALLY. IN ADDITION, CAMBRIDGE PROVIDES A NUMBER OF FREE ONLINE RESOURCES, INCLUDING FINANCIAL CALCULATORS, VIDEOS, GUIDEBOOKS, INFORMATIONAL ARTICLES, AND BUDGETING TOOLS. FINALLY, AND PERHAPS MOST IMPORTANT, CAMBRIDGE PROVIDES COMPREHENSIVE ONE-ON-ONE FINANCIAL ASSESSMENTS AND COUNSELING TO ANY INDIVIDUAL INTERESTED IN IMPROVING HIS OR HER UNDERSTANDING OF SOUND CREDIT AND DEBT MANAGEMENT PRINCIPLES.THE RESULTS OF CAMBRIDGE'S FINANCIAL ASSESSMENTS INDICATE THAT 15-20% OF PARTICIPANTS WOULD BE INCAPABLE OF ALLEVIATING THEIR OWN DEBT IN LESS THAN FIVE YEARS WITHOUT SIGNIFICANT CREDITOR CONCESSIONS. CAMBRIDGE BELIEVES THAT, OF THE REMAINING 80-85% OF INDIVIDUALS WHO HAVE PROBLEMS WITH MONEY MANAGEMENT AND DEBT, THE MAJORITY LACK A BASIC UNDERSTANDING OF THE FUNDAMENTALS OF PERSONAL FINANCE, A SUBJECT THAT, UNFORTUNATELY, IS RARELY TAUGHT IN AMERICA'S CLASSROOMS. IN FACT, WHILE 19 STATES REQUIRE HIGH SCHOOL STUDENTS TO TAKE A COURSE IN PERSONAL FINANCE, ONLY 6 MANDATE TESTING ON THE TOPIC PRIOR TO GRADUATION. WHILE YOUNG ADULTS HAVE BEEN TARGETED BY CREDIT CARD ISSUERS, FEW HAVE THE PROPER EDUCATION, RESOURCES, OR TOOLS TO MAKE INFORMED DECISIONS AND ESTABLISH RESPONSIBLE CREDIT PRACTICES. IT SHOULD COME AS LITTLE SURPRISE THEN THAT MANY YOUNG ADULTS NEED SOME FORM OF FINANCIAL ASSISTANCE FIVE, TEN OR TWENTY YEARS DOWN THE ROAD. STUDIES BY THE GAO AND THE BOSTON BAR ASSOCIATION'S TASK FORCE ON FINANCIAL LITERACY EACH CONFIRM THAT YOUNG PEOPLE IN THE POST-COLLEGE YEARS ARE FILING FOR BANKRUPTCY AT AN ALARMING RATE, THE RESULT OF RECEIVING TOO MUCH CREDIT, TOO SOON, AND WITH TOO LITTLE GUIDANCE ON HOW TO USE IT. CAMBRIDGE IS COMMITTED TO CHANGING THIS TREND, AND TO IMPROVING THE LIVES OF AMERICANS BY PROVIDING THE EDUCATION THEY NEED. IN ITS LOCAL COMMUNITY, CAMBRIDGE PROVIDES FREE FINANCIAL LITERACY EDUCATION AND COUNSELING TO VETERANS RECEIVING SERVICES THROUGH LOCAL SHELTERS AND THROUGH HUD'S VASH PROGRAM. THE AGENCY'S STAFF ALSO PRESENTS FINANCIAL LITERACY SEMINAR SERIES TO INMATES AND FORMER PRISONERS THROUGH PROGRAMS DELIVERED THROUGH THE CONNECTICUT FEDERAL RE-ENTRY COURTS AND THROUGH THE HAMPDEN COUNTY SHERIFF'S DEPARTMENT, AND TO VOLUNTEERS WORKING WITH SENIOR CITIZENS THROUGH PROGRAMS PROVIDED BY GREATER SPRINGFIELD SENIOR SERVICES. CAMBRIDGE'S EDUCATION DEPARTMENT STAFF CONTINUES TO PROVIDE EDUCATIONAL MATERIALS AND CLASSROOM SPEAKERS FOR THE WESTOVER JOB CORPS, THE LARGEST VOCATIONAL TRAINING PROGRAM FOR YOUNG PEOPLE IN MASSACHUSETTS. CAMBRIDGE ALSO PROVIDES FINANCIAL LITERACY AND/OR STUDENT LOAN EDUCATION TO SEVERAL COLLEGES, AND WE CO-PRODUCE 6-7 MAJOR CREDIT FOR LIFE FAIRS FOR AREA HIGH SCHOOL STUDENTS EVERY SPRING. UNFORTUNATELY, DUE TO RESTRICTIONS IMPOSED BY THE PANDEMIC, MANY OF OUR IN-PERSON CLASSES AND EVENTS HAVE BEEN SLOW TO RESUME. THE STAFF HAS BEEN ABLE TO MOVE SOME CLASSES ONLINE, CONDUCTING FREE FINANCIAL LITERACY AND STUDENT LOAN COUNSELING WEBINARS TO EMPLOYEES OF THE FOOD AND DRUG ADMINISTRATION, TO MEMBERS OF THE MASSACHUSETTS, CONNECTICUT, AND NEW YORK TEACHERS UNIONS, AND TO THE PUBLIC EMPLOYEES FEDERATION OF NEW YORK, THE STATE'S LARGEST PUBLIC EMPLOYEE UNION. FROM 7/1/2021 TO 6/30/2022, CAMBRIDGE'S EDUCATION DEPARTMENT PRESENTED 158 FREE FINANCIAL SEMINARS AND WEBINARS TO 4,372 PARTICIPANTS THROUGHOUT MASSACHUSETTS, CONNECTICUT, AND NEW YORK. CAMBRIDGE ALSO PROVIDED A WIDE VARIETY OF FREE EDUCATIONAL VIDEO CONTENT ON THE INTERNET. DURING THAT SAME PERIOD, CAMBRIDGE'S 246 VIDEOS WERE VIEWED A TOTAL OF 22,319 TIMES.

SEE SCHEDULE OHOUSING COUNSELING - IN 2010, AFTER A COMPREHENSIVE APPLICATION AND ON-SITE EXAMINATION PROCESS, CAMBRIDGE BECAME A HUD-APPROVED HOUSING COUNSELING AGENCY. NEARLY HALF OF CAMBRIDGE'S COUNSELORS NOW HOLD ONE OR MORE NEIGHBORWORKS CERTIFICATIONS IN FORECLOSURE PREVENTION COUNSELING, PRE- AND POST-PURCHASE COUNSELING, RENTAL, AND REVERSE MORTGAGE COUNSELING. THE VAST MAJORITY OF THESE SERVICES ARE PROVIDED FOR FREE TO THE PUBLIC. (CAMBRIDGE'S REVERSE MORTGAGE COUNSELING FEE OF $125 IS IN KEEPING WITH HUD GUIDELINES BUT CAN BE WAIVED, AND PARTICIPANTS IN CAMBRIDGE'S EIGHT-HOUR PRE-PURCHASE CLASS PAY A NOMINAL FEE OF $50 FOR MATERIALS.) CAMBRIDGE'S REVERSE MORTGAGE COUNSELING PROGRAM HAS ALSO BEEN APPROVED BY THE MASSACHUSETTS EXECUTIVE OFFICE OF ELDER AFFAIRS. FROM 7/1/2021 TO 6/30/2022, CAMBRIDGE PROVIDED 69 FREE ONE-ON-ONE FORECLOSURE PREVENTION COUNSELING SESSIONS. 191 PROSPECTIVE HOMEBUYERS ATTENDED CAMBRIDGE'S PRE-PURCHASE CLASSES. SIXTY-NINE PARTICIPANTS SUBSEQUENTLY RECEIVED FREE FOLLOW-UP HOUSING COUNSELING SESSIONS FROM THE AGENCY. DURING THE TIME PERIOD, CAMBRIDGE ALSO CONDUCTED 5,143 REVERSE MORTGAGE COUNSELING SESSIONS, 683 OF WHICH WERE PROVIDED FREE OF CHARGE.BANKRUPTCY COUNSELING - IN THE FALL OF 2011, FOLLOWING AN EXHAUSTIVE ROUND OF APPLICATIONS AND EXAMINATIONS, CAMBRIDGE RECEIVED APPROVAL FROM THE EXECUTIVE OFFICE FOR UNITED STATES TRUSTEES TO PROVIDE CREDIT COUNSELING AND DEBTOR EDUCATION SERVICES TO FINANCIALLY TROUBLED CONSUMERS WHO ARE CONSIDERING BANKRUPTCY OR WHO ARE AWAITING THE DISCHARGE OF THEIR DEBT. FROM 7/1/2021 TO 6/30/2022, CAMBRIDGE CONDUCTED PRE-FILING CREDIT COUNSELING SESSIONS FOR 39 INDIVIDUALS AND PROVIDED PRE-DISCHARGE DEBTOR EDUCATION COURSES TO 13 INDIVIDUALS.