CAMBRIDGE CREDIT COUNSELING CORP

Individualized Educational Financial Counseling Cambridges tax-exempt status is based on the provision of financial education to the public. The organizations primary method of fulfilling this exempt purpose was accomplished through the provision of 43,996 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 organizations forty-one independently certified credit counselors. Cambridges counselors are certified by the National Foundation for Credit Counseling, whose certification programs have been reviewed and approved by those states that require approval of counselor certification programs. Cambridges 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 persons circumstances. This assessment, which is performed at no cost and without obligation, is based on statutory requirements for identifying an individuals current financial condition, and, when necessary, appropriate techniques are used to discover the factors and behaviors that may be contributing to the individuals 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 individuals 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 individuals 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 individuals 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 Cambridges free financial management guides, which the public may also access for free on Cambridges website, www.cambridgecredit.org.Between 7/1/2024 and 6/30/2025, Cambridge provided 43,996 individual counseling sessions. Of the roughly 31,203 individuals who contacted the agency for the first time, 6,346 (20.34%) enrolled in Cambridges debt management program. For these individuals, DMP enrollment is only one aspect of Cambridges educational counseling program.As the Consumer Federation of America, American Express, and the GeorgetownUniversity 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. Cambridges 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 participants particular issues, these follow-up calls continue building the participants 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 individuals Action Plan. The consumer is encouraged to access the companys educational websites and to continue to use his or her counselor as a financial education resource, at no cost or obligation.The impact of Cambridges program has been significant. Cambridges 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 Cambridges post-counseling program are the survey responses gathered through Iota Solutions, an unaffiliated third party, which indicate that more than 86% of long-term program participants continue to track their expenses, while nearly 75% 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 2024 to June 2025, Cambridge provided sessions for 24,857 individuals who did not enroll in Cambridges DMP. These consumers were among the more than 77,920 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 agencys educational videos.

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 Cambridges 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. To address this issue, 29 states have passed legislation requiring high school students to pass a course in personal finance before graduating, but the effects wont be seen for years. In the meantime, educational nonprofits are doing what we can to help consumers understand the basics of credit, debt, and personal money management.In its local community, Cambridge provides free financial literacy education and counseling to veterans receiving services through local shelters and through HUDs VASH program. The agencys 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 Sheriffs Department, and to volunteers working with senior citizens through programs provided by Greater Springfield Senior Services. Cambridges Education Department staff 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. The staff has been able to move some classes online, conducting free financial literacy and student loan counseling webinars to members of the Massachusetts, Connecticut, and New York teachers unions, and to the Public Employees Federation of New York, the states largest public employee union. From 7/1/2024 to 6/30/2025, Cambridges Education Department presented 314 free financial seminars and webinars to 6,726 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, Cambridges 246 videos were viewed a total of 6,677 times, and our social media content was viewed by an additional 57,954 individuals.