Maryland Debt Relief
15 MIN READ
Published March 31, 2023 | Updated May 17, 2023
Maryland Debt in a Nutshell
The state of Maryland has one of the highest consumer debts in the country, with an average of $128,916 per resident. However, the good news is, residents of the Old Line State also had an average FICO score of 716 in 2022, 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
- Debt forgiveness
Debt and Finance Statistics About Maryland
The following are debt and finance statistics specific to the state of Maryland:
Average Consumer Debt
The average consumer debt in Maryland was well over $100,000 in 2022, making it one of the leading states with 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 they can rack up a lot of debt 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 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.
Maryland’s home prices are on the rise, with an increase of 3.3% this past year to a median sale price of $377,661. As a result, Maryland residents’ median monthly mortgage payment is $2,111, with a median gross rent of $1,485.
Student Loan Debt
Paying for higher education can burden many students after graduation, and this financial situation isn’t easy for most Maryland residents. The state ranks second in the nation with the highest federal student loan debt at $43,165 per borrower.
The average household debt in the U.S. sits at $96,371. With a state household debt-to-income ratio of 1.98, many Maryland residents owe almost twice what they earn.
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 U.S. Census Bureau, the median household income of Maryland residents is $91,431, with an unemployment rate of 2.7% as of March 2023. However, the state employs 2.97M people. Maryland's leading industries are construction, elementary and secondary schools, and food services and restaurants.
Maryland boasts a low-income inequality index of 0.457 compared to the national average.
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 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.
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 retirement income tax. However, it imposes an income tax on IRA funds and has both an inheritance and estate tax.
Internal Debt Statistics from 2022
TurboDebt has been at the forefront of liberating the residents of Maryland from a continuous debt cycle. We pride ourselves on helping customers in Maryland with debt management strategies and low-cost solutions. In 2022, we served 2,074 residents of the Free State, with 615 of them enrolling in our debt relief program.
The average client enrolled debt was $23,477, and we’ve successfully saved our customers 52.39% on average before service fees.
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.
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 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.
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 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 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.
It’s not a secret that retirement debt is a growing concern in Maryland. According to a recent study by WalletHub, 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 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 loan amount, leaving you with a single monthly payment.
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.
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.
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 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 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:
- The Maryland Medical Assistance Program provides financial assistance for medical services to eligible Marylanders.
- The Emergency Medicaid Program helps people who qualify for Medicaid but need immediate medical treatment.
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.