Cambridge Credit Counseling Corp. Announces New Survey on Why Consumers Seek Debt Management Programs.

Business Editors

AGAWAM, Mass.--(BUSINESS WIRE)--April 22, 2002

Cambridge Credit Counseling Corp. ("Cambridge Credit"), one of the nation's largest independent and most reputable not-for-profit, nation-wide credit counseling organizations, is proud to announce the release of the first ever survey on why consumers seek credit counseling, specifically a Debt Management Program (DMP).

The survey, entitled "Why do consumers seek Debt Management Programs? The truth revealed!", was first released along with the Cambridge Consumer Credit Index ("CCCI") on April 5th 2002 after several months of intense research by Cambridge Credit. This survey will be released on a monthly basis to coincide with the release of the Federal Reserve Board's G19 release of consumer credit outstanding data along with the release of the CCCI.

"Over the last several years, the need for DMP's has risen dramatically. This, coupled with the emergence of debt mills prompted us to take a long hard look at the reasons why a consumer seeks out a DMP as an alternative to bankruptcy. By analyzing this data, Cambridge Credit can tailor programs to the needs of our clients" states Cambridge Credit's General Manager, Chris Viale.

Each month, Cambridge Credit's Certified Counselors provide personalized counseling sessions to tens of thousands of consumers. During these sessions, a random sampling of consumers are asked "What was the main reason or recent event that made you realize you needed help with your unsecured debt?" Answers are grouped into eight (8) categories. Of the 1683 random consumers that were surveyed during the month of March 2002, this was the order in which they responded:

1. I am frustrated with high bank rates and fees (33%)

2. My income has been reduced do to a lower salary, less overtime

or layoff (22%)

3. I want to improve my ability to achieve future financial goals

like buying a house or saving for retirement (13%)

4. I got into too much debt by overspending (12%)

5. My lack of financial education caused me to take on too much

debt (6%)

6. Large medical expenses forced me to take on huge debts (4%)

7. My recent divorce or widowhood forced me to take on large

debts (3%)

8. Other reasons (7%)

To review the results of each month's survey, please visit the Cambridge Credit website at www.cambridgecredit.org. If you would like to discuss certain aspects of the survey please contact Chris Viale, General Manager, at 413-821-6919 [e-mail].