Maryland Debt in a Nutshell

The state of Maryland has one of the highest consumer debt levels in the country, with an average of $131,948 per resident. The good news is that residents of the Old Line State also had a high average FICO score of 716 in 2023, making it convenient for residents to access low-interest loans because of good credit ratings.

As residents of Maryland take out more loans to pay for their expenses like auto loans, and mortgages, many find themselves in a complex financial situation trying to pay back these outstanding balances.

This high amount of consumer debt explains why more residents are looking for Maryland debt relief programs to escape debt collectors and the never-ending cycle of indebtedness.

How Does Debt Relief Work in Maryland?

You can work to achieve debt relief in Maryland by pursuing one of the following debt relief options:

  • Debt management programs
  • Debt consolidation loans
  • Debt settlement
  • Credit counseling
  • Bankruptcy
  • Debt forgiveness

Debt and Finance Statistics About Maryland

The following are debt and finance statistics specific to the state of Maryland:

Average Consumer Debt

With the average consumer debt in Maryland well over $100,000, the Old Line State carries some of the highest consumer debt when compared to the rest of the nation.

Credit Card Debt

Credit cards can be an effective tool for charging small amounts, but these can add up to a very large balance due to recurring high interest rates and late fees. Maryland’s debt contributes a big chunk to the nation’s credit card debt, with an average of $6,276 per resident across the state.

Auto Loan Debt

Americans borrowed an average of $34,635 for new vehicles and a median of $21,500 for used cars, raising the nation’s auto loan debt to more than $1.1 trillion. Maryland’s monthly average added to this figure, averaging $21,228 in auto loan debt per household.

Mortgage Debt

Maryland’s home prices are on the rise, with an increase of 3.6% this past year to a median sale price of $400,707.

As a result, Maryland residents’ median monthly mortgage payment is $2,111, with a median gross rent of $1,485.

Student Loan Debt

Even years after graduation, many Maryland consumers still struggle to pay off large amounts of student loans. The state ranks second in the nation with the highest federal student loan debt at $43,165 per borrower. Thankfully, the state also offers help to qualifying residents.

“Maryland taxpayers who have incurred at least $20,000 in undergraduate and/or graduate student loan debt and have at least $5,000 in outstanding student loan debt are eligible to apply for the Student Loan Debt Relief Tax Credit,” explains Brad Reichert, a debt expert and the founder and managing director of Reichert Asset Management LLC. 

“The tax credit can be claimed on the Maryland resident’s state income tax return when they file each year,” Reichert says. “Certain requirements are needed to get approved, but the program has provided nearly $50 million in credits since the program originated in 2017,” he adds. 

Household Debt

The average household debt in the U.S. sits at $104,215.

With a state household debt-to-income ratio of 1.99, many Maryland residents owe almost twice what they earn each year.


The total number of bankruptcy cases filed in Maryland dropped to 7,442 in 2022 from over 11,000 in 2020. Chapter 7 bankruptcy cases led with 4,780, followed by Chapter 13 at 2,599, and Chapter 11 at 61 cases.

Average Income and Employment

According to the latest report from the U.S. Census Bureau, Maryland residents earn a median household income of $98,461 per year.

The state also had an unemployment rate of 2.0% as of June 2023. However, the state employs 2.97 million people, just under half of its 6.18 million residents. Maryland's leading industries are construction, education, and food services.

Credit Scores

Paying your debt on time and minimizing your credit card use go a long way toward improving your credit score. Most Maryland residents have maintained what’s considered a “good” FICO score, which means they can access loans at low interest rates.

The average FICO score in Maryland was 716 in 2022 and 2021. These positive credit scores can be partially attributed to on-time loan payments.

Identity Theft

The state of Maryland is the state with the 11th highest incidents of identity theft, with 20,736 identity theft cases reported in 2022. The top forms of identity theft in the state are as follows;

  • Credit card fraud at 43.7%
  • Other types of identity theft (including online shopping, social media, and payment account fraud) 28.1%

Banking and Tax Info

Maryland is a tax-friendly state with a 6% state sales tax and an exemption from additional local sales tax and income tax on certain types of retirement income, such as Social Security, pension income, and 401k withdrawals. However, it does impose normal income tax on IRA withdrawals and has both an inheritance and estate tax.

TurboDebt Helped Maryland Residents Find Debt Relief in 2023

TurboDebt has been at the forefront of liberating the residents of Maryland from a continuous debt cycle. From Baltimore to Frederick and beyond, we pride ourselves on helping customers in Maryland with debt management strategies and low-cost solutions. In 2023, we served 4,605 residents of the Free State, with 1,292 of them enrolling in our debt relief program.

The average client enrolled debt was $24,083, and we’ve successfully saved our customers 55.54% on average before service fees.

TurboDebt Debt Relief Program Statistics in Maryland 

Top Types of Debt To Get Relief From In Maryland

Several types of debt can be alleviated through relief programs in the state of Maryland, including:

Credit Card Debt

According to recent statistics, Maryland ranks as the 6th state in the nation with the highest credit card debt. The average credit card debt per household in Maryland is $5,977, with a total credit card debt of over $6 billion across the state. 

Credit card debt is one of the most common types of debt people enroll in TurboDebt for relief. Credit card companies often carry high interest rates, making it difficult for many Maryland residents to make payments that cover the principal balance.

With TurboDebt, we can help you negotiate with your creditors to potentially lower your interest rates, or settle your debts for less than the full amount owed, allowing you to turn all of your credit card debt into one manageable monthly payment.

TurboDebt is a licensed financial institution that follows the Maryland Debt Settlement Services Act and has provided professional debt relief services to thousands of consumers across the United States for years.

Divorce Debt

Divorce is a complex and often difficult process, both emotionally and financially. One of the most significant challenges during divorce is managing the accumulated debt. The average cost for a divorce in Maryland is between $11,500-$13,000. This debt can quickly become overwhelming, especially if you don't have a clear management plan.

Fortunately, at TurboDebt, we can help you sort out divorce debt. Our company offers a range of tailored debt relief programs that can help you become debt free in as little as 24-48 months, making it easier to move forward after your divorce.

Business Debt

In Maryland, businesses of all sizes may struggle with managing their debts, which can significantly impact their financial health. Fortunately, Maryland debt relief programs like ours can help business owners tackle their debts and get back on track.

According to the U.S. Small Business Administration, about 600,000 small businesses in Maryland employ more than 1.1 million people. However, many small businesses in Maryland need financial help, including debt relief.

TurboDebt can help businesses in Maryland manage their debts by providing financial counseling services to determine what type of debt relief option is best. These services can help businesses reduce and simplify their monthly payment structure. Additionally, the program allows for negotiation with creditors on behalf of the business to lower interest rates and fees, saving companies money.

Medical Debt

Medical debt is a core financial burden for individuals and families in the United States. More than 43 million Americans have medical debt on their credit reports. TurboDebt, a debt relief company serving Maryland, offers a program to help those burdened with medical debt.

If you are struggling with medical debt in Maryland, consider contacting TurboDebt to let us help. With our debt relief and negotiation expertise, you can get the assistance you need to alleviate your financial burden.

Homeowner Debt

Homeowner debt is a significant financial burden that many Americans and Marylanders face. In fact, over 70% of America’s debt comes from mortgage balances. If you are struggling with homeowner debt, consider contacting our TurboDebt experts for help.

Retirement Debt

It’s not a secret that retirement debt is a growing concern in Maryland.

The state of Maryland is among the worst states to retire in, which is quite worrisome.

The good news is that it’s never too late to take control of your finances and start the process of paying off your debt while on a fixed income. TurboDebt can help you find a personalized solution for your retirement debt so you can focus on the future instead of worrying about how to pay off your financial burdens.

Options for Debt Relief in Maryland

If you're struggling to pay off your debts, consider the following debt relief options in Maryland:

Debt Management Programs

Are you feeling overwhelmed by debt? Are you struggling to make ends meet? Fortunately, there are several great options for debt relief in Maryland. One of the top options includes debt management programs. These programs involve negotiating with creditors to reduce interest rates and develop a repayment plan that works better for the individual. This can help people avoid bankruptcy and gradually pay off their debt over time. However, it's important to find a reputable debt management program to ensure the best outcome. 

Debt Consolidation Loans

Another debt relief option for a Maryland consumer is debt consolidation loans. These loans allow borrowers to combine multiple debts into one, often at a lower interest rate, making it easier to manage and pay off their debt. 

One important aspect of a consolidation loan is your credit score. A credit score rated "good" or higher can help you secure a low-interest loan, making consolidation more effective. Once you accept the loan, you pay off all your outstanding accounts in a lump sum funded by the consolidation loan amount, leaving you with a single monthly payment. 

Debt Settlement

Maryland residents facing overwhelming debt have the option of debt settlement as a form of debt relief. A debt settlement plan entails negotiating with lenders to settle outstanding debts for less than the full amount owed. This can be an effective option for those struggling to make minimum payments and facing the possibility of bankruptcy.

Working with a reputable debt settlement company that can successfully complete the negotiations is important. Debt settlement services can effectively eliminate financial burdens like credit card and medical debt, often in as little as 24 months. 

Credit Counseling

For Maryland residents struggling with debt, a credit counselor may be a helpful option for debt relief. Credit counseling involves working with a trained advisor to create a budget, develop a debt repayment plan, and learn financial management skills. Credit counseling organizations can help individuals better understand their debt and learn how to manage it effectively.


Throughout the U.S., individuals file for two main types of bankruptcy: Chapter 7 and Chapter 13. Chapter 7 bankruptcy allows you to discharge most of your unsecured debts, such as credit card debt and medical bills. Chapter 13 bankruptcy, on the other hand, will enable you to restructure your debts into a manageable repayment plan over the course of 3 to 5 years.

However, before considering bankruptcy, it's important to speak with an experienced bankruptcy attorney for legal advice on your options and how to navigate the process. It's also important to note that using bankruptcy as a form of debt relief can negatively impact your credit score for up to 10 years. 

Debt Forgiveness

Debt forgiveness occurs when your creditor cancels some or all of your debt. This is not a common form of relief as programs are mostly offered by federal and state governments.

Many of these programs have strict requirements used to qualify participants, including income level and profession. Debt forgiveness may also come with potential income tax implications, so it's important to speak with a financial advisor or tax professional before pursuing this option. 

Debt and Financial Hardship Resources

Temporary Assistance Programs

The state of Maryland offers several temporary assistance programs for residents struggling to make ends meet. These programs provide temporary financial help, including food stamps and cash assistance, to people who meet the eligibility requirements.

Additionally, there are several other resources available to those in need of some extra support. These include:

  • The Maryland Temporary Assistance Program is available to low-income families and individuals who need help paying bills or purchasing necessities. The program provides cash assistance, food stamps, and medical benefits.
  • The Maryland Home Energy Assistance Program helps qualified households pay their heating bills during winter months. You can apply at your local social services office.

State Health and Human Services

If you need help paying for health care, you can contact the Maryland Department of Health and Human Services. The state offers a variety of programs to help people who can't afford health care, including:

Child Care

In addition to temporary assistance programs that provide basic needs, Maryland offers childcare resources to assist families experiencing financial hardship due to debt or other reasons.

The Maryland Child Care Subsidy Program provides financial assistance to eligible families to help cover the cost of child care. The program is designed to support low-income families, including those working, attending school, or participating in job training programs.

Shelters for the Homeless

There are many resources for people who have experienced financial hardship, are in debt, or are homeless. Some shelters for the homeless in Maryland include:

Baltimore City Shelter System (BCHS): This is a network of shelters and social services for people who are homeless in Baltimore City. It includes emergency shelters and longer-term service programs that help individuals get back on their feet.

Prince George's County Emergency Assistance Program (PEAP): This program, run by the Prince George's County Department of Social Services, provides homeless families with temporary shelter and other services.

Free Transportation Services

Maryland is home to charitable organizations providing nonprofit free transportation for individuals needing access to appointments for medical care, job interviews, or grocery shopping.

The Maryland Transit Administration (MTA) provides several transportation services, such as the door-to-door MobilityLink program for those with impairments or limited mobility. It also has the CityLink and CityLink programs for bus service within Baltimore city limits. Using these services can save you money and lessen the financial strain of transportation costs.

Find Debt Relief in Maryland

If you want to live debt-free or need advice on handling your debt, don't hesitate to reach out to us. At TurboDebt, we’ll help you create a plan that works for your unique financial situation and goals.

Get started with a free consultation and work towards becoming debt-free in 24-48 months.