Would it help to talk this through?
A certified counselor will go through your own numbers with you. The session is free and there is nothing to buy.
Why Minimum Payments Barely Move the Balance#
Cambridge Credit Counseling gives an example that shows how slow this can be. A $500 credit card balance repaid only with minimum payments of 3 percent of the balance, at 1.75 percent interest per month, takes almost seven years to pay off and costs $404.64 in interest, for a total cost of $904.64. The math works the same way on any balance. Most of each minimum payment goes toward interest first, so the amount owed shrinks very slowly.
Immediate Steps You Can Take#
- Write down every credit card balance, interest rate, and minimum payment so you can see the full picture at once.
- Look at your budget to see how much you could realistically put toward debt each month.
- Talk to a nonprofit credit counselor before missing payments or taking on new debt to cover old debt.
- Get a free debt evaluation from Cambridge Credit Counseling’s nationally certified credit counselors to understand which options fit your situation.
What a Free Credit Counseling Session Includes#
Cambridge Credit Counseling offers credit counseling as a free service to consumers who are having trouble paying credit card and other unsecured bills. A counselor reviews your full financial picture and looks for ways out of debt with you. There is never any obligation to enroll in a Debt Management Plan after the session, so you can use the session simply to understand your options.
How a Debt Management Plan Works
If a Debt Management Plan makes sense for your situation, Cambridge Credit Counseling has you make one monthly payment to Cambridge, and Cambridge sends payments to each of the creditors included on the plan. One of the most significant benefits creditors typically extend to clients of a credit counseling agency like Cambridge Credit Counseling is a reduction in credit card interest rates. Cambridge clients see interest rate reductions from 28.99% down to 7% on average...some as low as 0%.
Options Cambridge Credit Counseling Does Not Sell#
An honest look at your choices should include paths Cambridge Credit Counseling does not offer as a product. For example, some people consider using home equity to pay off credit card debt. Using home equity to pay off credit card debt converts unsecured debt into debt secured by your home, which puts your home at risk. Bankruptcy is another path some people explore. Cambridge Credit Counseling is approved by the U.S. Department of Justice Executive Office of United States Trustees to provide the required pre-filing credit counseling course and post-filing debtor education course, both available online. Cambridge Credit Counseling does not report participation in these courses and does not pull your credit report to provide them, so taking these specific courses has no effect on your credit rating. A bankruptcy attorney, not Cambridge Credit Counseling, would advise on whether bankruptcy itself is right for you.
Approval by the U.S. Department of Justice Executive Office of United States Trustees does not endorse or assure the quality of our services.
Other Support Cambridge Credit Counseling Offers#
Cambridge Credit Counseling is a 501(c)(3) nonprofit agency established in 1996 that also provides housing counseling, reverse mortgage counseling, and student loan counseling, along with financial literacy education. Cambridge Credit Counseling is approved by the U.S. Department of Housing and Urban Development to provide housing counseling nationwide, including first-time homebuyer courses. Cambridge Credit Counseling provides foreclosure intervention and default counseling to residents of Massachusetts, Connecticut, New York, Missouri and Kansas. If your $20,000 in card debt is connected to housing costs or other financial pressures, these related services may also be worth asking about during your session.
What to Do Next#
The most useful first step is a free credit counseling session with Cambridge Credit Counseling. A certified counselor can review your $20,000 in debt, your income, and your monthly expenses, then walk you through every option honestly, including ones Cambridge Credit Counseling does not offer directly. There is no obligation to enroll in anything after the session.
Common questions
Will a Cambridge Credit Counseling counseling session cost anything?
No. Cambridge Credit Counseling offers credit counseling as a free service, along with a free debt evaluation from its nationally certified counselors.
Do I have to enroll in a Debt Management Plan after the session?
No. There is never any obligation to enroll in a Debt Management Plan after a credit counseling session.
Is using home equity a safe way to pay off $20,000 in credit card debt?
Using home equity to pay off credit card debt turns unsecured debt into debt secured by your home, which puts your home at risk.
Does taking Cambridge Credit Counseling's bankruptcy-related courses hurt my credit?
No. Cambridge Credit Counseling does not report participation in its bankruptcy counseling or debtor education courses and does not pull your credit report for these services, so they have no effect on your credit rating.
Where this information comes from
- Bankruptcy Counseling | Cambridge cambridge-credit.org Checked 2026-08-04.
- Cash-Out Refinancing | Cambridge Credit cambridge-credit.org Checked 2026-08-04.
- Best Credit Counseling Service | Cambridge Credit cambridge-credit.org Checked 2026-08-04.
- Creating a Household Budget | Cambridge Credit cambridge-credit.org Checked 2026-08-04.
- About Cambridge Credit Counseling cambridge-credit.org Checked 2026-08-04.
- Cambridge Credit Counseling cambridge-credit.org Checked 2026-08-04.
- Cambridge Credit Counseling cambridge-credit.org Checked 2026-08-04.
- Credit Counseling Certifications | Cambridge Credit cambridge-credit.org Checked 2026-08-04.
- Credit Counselors - Housing Counselors | Cambridge Credit cambridge-credit.org Checked 2026-08-04.
- Financial Literacy | Cambridge Credit cambridge-credit.org Checked 2026-08-04.
- Selecting a Consumer Credit Counseling Agency | Cambridge Credit cambridge-credit.org Checked 2026-08-04.
- Credit Basics | Cambridge Credit cambridge-credit.org Checked 2026-08-04.
- What is Credit Counseling? | Cambridge Credit cambridge-credit.org Checked 2026-08-04.
- Using Credit Responsibly | Cambridge Credit cambridge-credit.org Checked 2026-08-04.
- Cambridge Credit Counseling, Marketing Advertisements Source Data, prepared by Brian Vosburgh, Director of DMP Operations, 1 September 2026. Checked 2026-09-02.