Now that the holidays are over, many consumers are seeing the folly of overspending. In fact, many people have spent their way into financial jeopardy, putting themselves and their families at risk. It’s not pleasant to think about, but it’s a fact of life for millions of Americans. This is also why January, February and March are the busiest months at nonprofit credit counseling agencies across the country.
For-profit debt settlement companies often increase their advertising during the post-holiday period, extending bogus "lifelines" to desperate consumers. In truth, "the secret the banks don’t want you to know" is that there is absolutely no right for consumers to settle a debt in the United States. But creditors almost always have a right to sue, and that’s what they might do during the months it probably will take for a debtor to save enough money to propose a settlement. Even if the creditor agrees to settle, the amount "saved" will be negligible. The settlement company will take between 25 percent and 40 percent of the savings as its fee – a hefty payday for doing nothing while exposing you to a lawsuit and ruining your credit. No, debt settlement companies are not your friends when you’re in trouble.
Instead, financial education is the answer. Before Cambridge Credit Counseling became an MTA Benefits partner – providing members with free student loan counseling and informational webinars – it spent more than 25 years helping consumers deal with financial difficulties.
Cambridge’s debt management plans are developed with creditors, who typically agree to reduce their interest rates and waive their fees in return for the counseling and education Cambridge provides. Rather than paying down their credit card balances at rates that average 25 percent, Cambridge clients repay the balances at an average of just 7 percent, an arrangement that can save consumers money without the threat of a lawsuit or intrusive calls from creditors.
Cambridge Credit Counseling knows that MTA members are already facing considerable professional challenges. It’s here to help members make informed and effective financial choices in their professional lives. That’s where Cambridge can make a crucial difference. If your budget is uncomfortably tight, due either to increasing expenses or student loan payments, MTA Benefits encourages you to call a Cambridge counselor at 888.948.4639 to review your options. The counseling sessions are free for MTA members. To learn more about available credit and debt counseling services, watch one of two free webinars presented by Cambridge Credit Counseling, on Feb. 15 or March 6. To register, visit www.mtabenefits.com/webinars.
