THE Cambridge Connection - Episode 11

org. We love to hear from you, and who knows, your question might get featured here in our Real People, Real Problems segment. We’ll be right back with Tina Marie and our guest this week, Christy Navarro. This is Gordon Oliver, and you’re listening to The Cambridge Connection right here, right now on WHMP. Hi everyone.

This is Christopher Viale, President of Cambridge Credit Counseling. My staff and I are proud of our accomplishments over the past 25 years, including being named the Nonprofit of the Year by the BBB and earning our high rankings from financial websites. We work hard for our clients, but our expertise is limited, which is why we work with lots of other great businesses and service providers to help you get where you want to be. If you need financial help, Cambridge and our friends will help you find solutions. Call us today, 1-800-CAMBRIDGE.

Current events on consumer spending trends

Please be advised that on this segment, we’re going to get into some very serious situations and potential mental problems, and if you do need help, please reach out for assistance right away. Welcome back, everyone. This is Gordon Oliver, and you’re listening to The Cambridge Connection on WHMP, and we’re going to turn to a little current events. Tina, what do you got for us this week? S.

8% in the fall of 2020. With people feeling a little bit more secure than they did in 2020, consumer spending on services is set for a strong comeback this year. S. consumers from Deloitte’s state of the consumer tracker is Americans appear increasingly ready to stay at hotels. Obviously, if there was a while, they weren’t even open.

Times of year people overspend

Let’s talk about that for a minute. As a certified counselor that’s been with Cambridge Credit for as long as you have been, what are the times of the year that you find people have decided that they’ve overspent? Typically, it’s obviously the holidays. I think that’s one of the biggest, after the holidays, and then summer, vacationing. A lot of consumers want to go on their vacations.

They were cooped up for a year, so now they’re overspending. They’re compensating for what they might have lost, and unfortunately, not really taking into consideration the actual cost of using credit cards or even just travel, travel cost alone. I mean, cars, to rent a car now is double of what it used to be. Gas prices are up. Gas prices are astronomically up.

Ironically, air travel, I’ve noticed, is down just to get the consumers to start spending again, but it’s still, when you put a round-trip ticket on a credit card for, say, $250, and then you’re going to add 18% interest each month, it’s going to take you five years to pay off that one air ticket. So after the summer, so Labor Day, boats get put away, that’s the time when you see people needing assistance, and also in the new year after the holidays. Definitely. Christy, on the mental health side, are there times of the year where you see these types of patterns as it relates to debt? I wouldn’t say that I’ve seen the patterns, per se, but I mean, we definitely see around the, when school starts, for people who have children, that seems to be a struggle, as well as the holidays as well, and then after the holidays, because then it’s kind of like all of it is hitting you at one time.

So we had Kimberly Lee in the past from the mental health organization, one of the terms that we had coined is debt stress, because as people get into debt and their debt levels are high and they’re having difficulty managing, that adds a level of stress. Can you talk to that? It absolutely does. I mean, the feelings of overwhelming that happens when you’re just trying to pay your bills, you know, your paycheck comes in and it’s gone. It’s very hard.

It’s hard to figure out what to do next. It’s hard to figure out how to make more money, how to save money, right, how to plan for anything in the future. It’s really hard, and people struggle. They really struggle with it, even if they’re making enough money to make ends meet. You know, I think we talked about spending.

People do want to enjoy life as well. And this year was extraordinary because people were locked down for a while, so they did well financially because there was stimulus money. They weren’t able to go out and spend as much. There wasn’t gathering around the holidays last year, so an abnormal dynamic actually put people in a better place financially. But again, once you come out of that, you start to see these trends of things completely going the other way.

Right. Absolutely. And I would say, too, that I think online shopping kind of spiked up while we were all in the house as well. So that is another piece. I was interested to see that recently, because of all the, you know, things opening up again, that people are actually looking forward to going back to physical.

shopping because they don’t know, with supply chain issues, they don’t know when their gifts are going to arrive necessarily, and so they’re looking forward to actually going shopping. So either way, you know, it’s the typical, we are in the holiday season and people are going to spend. I’m sure they already have already started. My mother, for instance, is done. She did all her online shopping because she was nervous that the gifts weren’t going to be in on time.

And I even noticed on a personal level, if you go to purchase something online, it’ll say seven to 10 business days, not guaranteed. So yeah, I think the consumers are in a rush to get this done and they don’t want to miss it. So they’re out and they’re typing away and spending and spending and spending without even realizing how much they’re spending. Not a myth. I’m waiting for a package in September 21st for Halloween.

Mental health behaviors and compulsive spending

How’s that working out for you? If you’re just joining us, this is Gordon Oliver with The Cambridge Connection. I’m here with Christy Navarro and Tina Marie, our rockstar credit counselor. So as it relates to certain mental health problems, are there behaviors that you see that actually lead to compulsive spending or compulsive use of credit card debt when you’re counseling people? Yeah.

I mean, if someone has bipolar disorder and is manic, they may go on a spending spree. They may spend a lot of money and not realize that they have actually spent as much as they did. And then when they look down, it’s like, whoa. And then of course, you know, gambling disorders, even gaming disorders. Yeah.

We’ve got Connecticut just opened up. I know Massachusetts has got it in the legislature now. I don’t even know how many states at this point accept gambling. There’s fantasy sports. And all of it can be funded by a credit card.

Yep. Absolutely. And not to mention the games that we’re playing on computers and our phones and all of those things that it looks like it’s $5 for five extra lives. But the more you do that, how much are you spending on all those lives? Absolutely.

So you actually see people that when they call in that they actually are addressing some of these behaviors? Yeah. Sometimes they don’t see them as significant as they really are. But yeah, absolutely. Is that something that comes out in the counseling process?

Yes. Yeah. It’s the same thing at Cambridge Credit Counseling on a different level. Absolutely. I may not be qualified to say this, but I do feel a lot of consumers, it’s self-medication, just like the alcoholic.

Somebody that might not be doing so well, they go to the alcohol. The bipolar disorder where they don’t realize they’re on this high and they just got to have it, got to have it. And then when they come down, I’m getting the phone call, where did you spend the money? I don’t know. And unfortunately, they don’t know.

And that’s where we have to kind of really dig deep. And we would actually refer them to a counselor. Maybe you should talk to somebody, you know, besides the financial side, you should get help on the mental side as well. So Tina Marie, do you have an example or two when we come out of the holidays of someone that you worked with that had these types of situations where they overspent, they didn’t know what they were doing? A lot more than never.

Honestly, a lot of the consumers that I do speak to that might suffer from bipolar disorders or alcoholism, it comes in at any time of the year. It’s not just holiday spending, but I think a lot of consumers, they want to feel important. They want to give the best gift. So they will overspend and not realize how much they’re spending until after the fact when the bills come in. And at that point, you know, I can help them with the financial aspect out of it, but you still have to get to the root of the problem.

Why did you spend this money? Why don’t you know where your money’s going? So if Cambridge is handling the debt side of this, in the same type of situation, how would you work with someone to try to work through this type of situation? So I would really try to get into what is the reason? Like, what are we feeling?

What are we thinking? What does that do for us when we are giving the best gift? When we see somebody, you know, appear to be super happy, like, what does that do for us? And is that the only way that we can get them there? I would really just explore those questions with them.

And it’s interesting, again, the partnership that Cambridge has with MHA, this is obviously showing that even though Cambridge could deal with the debt side of things, if there’s behavior around, you know, the debt spending, et cetera, there is other help that in some instances may be needed. And that is certainly something that as counselors we would recommend. We won’t just look at your debt and say, oh, OK, you’re good now. No, you’re not good. There’s another aspect that needs to be treated.

And that’s where we will recommend them talking to a therapist or something. And you learn those things in your certification. You learn there will be other places to send someone to help with another part of the problem. Absolutely. We’re there to address the entire problem, not just the financial part of the problem.

Counseling process and fear of missing out

So Tina, in the counseling process, the first thing you do is learn about the story of the client and why they got into the situation that they’re in. Yep. We dig deep. We ask questions and we go through the budget and we look to see where money is spent. Recently I spoke with somebody who were talking about gaming.

They wanted to go to a football game. And instead of, you know, budgeting and trying to save the money to do it. So now on the Internet, there’s these sites that actually work as a layaway where you can book a vacation and pay over time. Yes. So you actually go first and then pay later.

Absolutely. Learn now, pay later. That’s exactly what it is. And you know, it’s almost fear of missing out, especially around the holidays. People are traveling.

Nobody got together last year. This year, people want to get their families back together. Well, not everybody can afford it. So rather than just bite the bullet and say, I’m sorry, I can’t make it. They want to keep up.

They’re going to put it on a credit card. And then knowing very well that they’re already overextended, but don’t want to miss out on the holiday traditions. So in a situation like that, when you are seeing that there is a behavioral disorder, because in your counseling, you can tell there’s a problem, how would you handle that? And how could Cambridge get that client some help? Well, we would do our best to help them recognize their spending habits, point out where they could have cut back, and certainly would recommend that they talk with a licensed social worker, obviously to get deeper into it.

That’s not my profession, but I can recognize when there is overspending. And I would certainly suggest that they speak with somebody regarding that as well, a professional. One of the bigger things that I understand when you counsel somebody is there are some times where people will show signs that they are thinking of harming themselves, committing suicide, and there’s resources that you provide when that situation happens. Absolutely. And that’s with our training as well.

That’s definitely with our training as well, where, again, we can recognize trigger words, and then that’s where we would point. point them in a better direction to get better advice for their mental health. Christy, when you see a situation that Tina Marie is mentioning, when someone’s really at the end of their rope, how do you treat that? How do you deal with that? I think that it depends on the person.

I would definitely get into what’s going on, what is kind of triggering those spending responses. If it’s the fear of missing out, well, what is the fear around? What are you missing out on? What happens if you don’t experience that thing? What happens?

I’m kind of just exploring all of the options and being okay, getting to a point where you’re okay with missing out on something. In your experience, depression is prevalent. Absolutely. Definitely out of COVID, right? So would you say that in a lot of depression cases, you’ll see some of these things show up?

Yes. Sometimes people enjoy spending, right? People enjoy spending money. It makes them happy. So if they’re not feeling so great about themselves or about any situation, that may be a way to help them feel a little bit better about it.

Break with hotline mention and cohost commercial

The work that you do, the work that Cambridge Credit Counseling does, we know people have problems, and it is all about trying to give them knowledge that there is help out there when they are struggling, whether it’s mentally or financially. If you or someone you know, family member, friend, loved one, is struggling mentally and they need assistance, here’s the National Suicide Prevention Hotline, 1-800-273-8255. We’re going to take a short break. Coming up next, we’re going to do our Real People, Real Problems segment with sub co-pilot Tina Marie for REN. This is Gordon Oliver with The Cambridge Connection and WHMP.

Hey everyone, it’s REN, the co-pilot from The Cambridge Connection. Hold on, wait a minute. Where’s Gordon? This is his commercial. Oh well, I guess we’re here to talk to our listeners about Cambridge Credit Counseling, the company in partnership with your new show, The Cambridge Connection.

So what should we tell them? Hold on, REN. It’s Tina Marie. I think we should remind everyone that asking for financial wellness advice on student loans, buying a home, or even paying off credit card debt isn’t anything to be embarrassed about. It takes a lot of courage to ask for help.

You got it, Tina Marie. And Cambridge Credit Counseling offers so much more than just helping to manage credit card debt. That’s why Gordon is hosting THE Cambridge Connection radio show every week. It’s all about empowering people to pick up the phone and ask for help. Hey REN, is it my turn now?

Oops, sorry Gordy. We’re out of time, but if listeners need some financial wellness advice, there’s always time to call 1-800-CAMBRIDGE. 1-800-CAMBRIDGE. Welcome back. I’m your host, Gordon Oliver, with THE Cambridge Connection.

Real people real problems listener story

Right now we’re going to do our Real People, Real Problems segment. Tina Marie subbing in for our co-pilot. What do you got? Today we got Marie from Vermont, and she writes, Money is really tight this year, but I have a lot of people that I want to buy Christmas gifts for. I don’t mind doing something homemade for my co-workers, but I know my sister and father are going to spend a decent amount of money on my gifts.

I’ve read articles that say it’s the thought that counts, but that’s corny. Also my kids. I have two girls, and I’ve set an expectation with them on getting great gifts every year. I just can’t make them scarves and call it a day. Should I use my credit cards for gifts, or is this a good time to consider a store card?

So this is an interesting, common story that you would see all the time when it comes to people feeling that they are needing to buy gifts for people, because if they don’t, they’re going to feel guilty. Especially if, when it comes to being special and giving gifts, it’s not about receiving, it’s about giving, right? But in our world, unfortunately, we live in a material society, so people feel stress, right, Christy, about having to spend and buy gifts for their family and loved ones? Yes, they do. Absolutely.

So advice-wise, number one? Well, she asks about getting a store card. I don’t recommend that. A lot of store cards, yeah, they’re going to offer you 0% interest for a year or get 20% off, then charge you 25% interest on the account. So you’re really not saving any money, and that’s not such a good idea, unless you have the means to pay it off before the promotion ends.

If you have the means to pay it off before the promotion ends, great. But as far as keeping up with the Joneses, I don’t know. So this story tells about, it’s obvious there’s some stress here, that this person does not have the money, so it’s going to go on a credit card, which is spending what you don’t have. Ironically enough, I spoke with somebody just a few days ago who, they were invited to a holiday party, which is wonderful. Everybody loves holiday parties.

But the request was to bring a dish, to bring your own alcohol or whatever you’re drinking. There was also a request to wear a Santa hat and also bring 12 gifts for exchanging. This person just didn’t have the money, and this is where I have to explain to them, maybe Christy could even explain it even better, what do you do in a situation like that? Yeah, I mean, don’t be afraid to say no. That’s what I tell people all the time.

No is a full sentence, right? You don’t have to explain it. You don’t have to make people feel better because you said no. So in all of this, there’s some cornerstone tips that people need to think about in all of these situations. Number one, you have to release shame.

You have to be able to say to your core of people, your family, your loved ones, if you don’t have it, they’re not going to feel any better of you overspending and then being even worse off and sad and upset because you can’t pay your bills. I think what Christy said too is so important. Don’t be afraid to say no. Don’t be afraid. Don’t feel you have to give an excuse.

You can’t make it. How do you feel about recommending like a family lottery? That would be great. Do a Yankee swap, something like that, where you’re not breaking the bank and everyone can still participate. You put a level on the spending.

So let’s say it’s $25. Everybody brings one gift. Perfect. Right? You get one gift and everybody’s getting something.

If that’s what it has to be, fine. Even more importantly, now is the time to start planning for next year if you don’t have it this year. Now’s the time to start a fund where you can start putting a little bit of money away so you actually have cash, not having to put on credit cards money that you don’t have because you can’t pay it off when the holidays are over. Exactly. And not fall into the 0% promotions because it’s very enticing and it sounds good.

It looks great. But what if you lose your job? What if you get sick? What if you’re out of work? What if anything can happen where you may not be able to pay that promotion back within that time period allowed?

And now you’re paying interest on top of what you couldn’t afford in the first place. So for this segment, what would you see for a client in this? You see the stress involved here, right? And when you see people come to you, do you see these types of stories where they’re actually stressed out, that they have to, you know, uphold buying gifts for their family and it’s causing other problems? I mean, who isn’t, right?

Who isn’t stressed about all of the people that they have to buy for, all of the things that they have to get, how expensive the things are? Everyone is affected mostly in this situation. And again, if this is the year that you don’t have it, it’s okay to turn to your family members and just say, I don’t have it and cut the list down. More importantly, start a budget this year for next year, a nice little fund so you can start using cash to be able to buy your gifts and not put yourself further and further into debt. We’ll be right back with some final thoughts from Tina Marie and Christy Navarro.

Mental Health Association hiring announcement

This is Gordon Oliver with The Cambridge Connection right here on WHNP. Are you looking for a career where you can make a living while making a difference? The Mental Health Association is hiring. m. m.

Simply drive up, fill out an application, receive an interview, and you may be hired on the spot. MHA is growing and hiring for all positions, including direct care specialists, recovery support navigators, nurses, and more. Voted best place to work and best nonprofit four years in a row. Walk in on a Wednesday. org.

Final thoughts and closing remarks

Welcome back. This is Gordon Oliver with The Cambridge Connection. Tina Marie, let’s start with you. Some final thoughts on some information and advice that you could give consumers during the holidays. Don’t get wrapped up in the 0% promotions.

A lot of times they’ll tell you if you open up a credit card, they’ll give you 20% off. It sounds great, but if you don’t pay that off within that time frame, you’re going to be deeper and deeper in debt. And again, as Christy already said, learn to say no. Learn to say no. So Christy, there’s stress for the holidays, there’s debt stress.

What final thoughts do you have to offer to consumers as they’re dealing with this time of the year? I would say be realistic. We all have a lot of things going on and things change. Our families change, our families grow. Things change and kind of embrace that and build new ones.

Maybe we can’t be with our family for the holiday, but figure out how to still communicate with them. Do a video chat, something like that to stay connected. What if someone is struggling as we speak? Christy, if people need help now, how can they reach out to your organization? org.

The debt stress, mental health stress problem is real. It’s real annually, but we know there’s times of the year that people really, really are going to feel it. And I cannot thank you enough for spending time with the show today to get this great information out to consumers. Thank you so much for having me. And a big thank you to Tina Marie for helping me carry the show this week.

Thank you so much, Tina. Thanks for having me. My pleasure. Of course. A lot of important information today.

m. m. com, SoundCloud, or anywhere you listen to your favorite podcasts. org and be part of the conversation. And remember friends, it’s always free to call 1-800-CAMBRIDGE.

Hey everyone, Gordon Oliver here and I’m the host of the brand new Saturday morning show, The Cambridge Connection. m. we’ll spend 28 minutes together that will change your relationship with money for the better. I’ve been a financial counselor for 20 years and I’m here to get you excited about being in financial control. Join me next Saturday right here on The Cambridge Connection.

The holidays are a great time to teach children about spending. m. right here on WHMP.