Maryland debt consolidation programs help you pay bills at affordable interest rates. Find out how it works for you and saves your credit.

Debt Consolidation in Maryland

Are you a Maryland consumer with numerous debts encroaching on your savings? Are you finding it really hard to meet multiple monthly payments with variable interest rates? If that is your financial plight, then a Maryland debt consolidation program could be the right thing to get your finances back on track.

Maryland Debt consolidation offers the best solution when debts keep piling up. It enables you to combine all your present debts into a single sum that you pay off at a fixed interest rate that is lower than the total interest that you currently pay.

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How does Debt Consolidation work in Maryland?

Debt consolidation procedures in Maryland are the same as those in any other US state. Maryland consumers can consolidate their debts in the following ways:

  • By taking out a consolidation loan
  • Through a balance transfer
  • By enrolling in a debt consolidation program

Consolidating debts with a Debt consolidation Loan

Debt Consolidation Loan is one of the easiest and cost-effective ways to get your multiple debts consolidated in Maryland. All you need to do is take out a low-interest loan and pay off your existing debt. Your debts get simplified and you are left with a single monthly payment to be paid towards the consolidation loan.

Consolidation loans are available as both secured and unsecured loans. A secured loan requires you to put up an asset as collateral against the loan, an unsecured loan does not.

Collateralization lowers the interest and increases the principal on consolidation loans. This makes secured loans the more favorable consolidation loan option for the Maryland debtors choosing debt consolidation. A lower interest rate lessens the amount of your monthly payments and therefore reduces chances of default.

Home equity loans, second mortgages, and lines of credit are some of secured consolidation loans available. If you do not own an asset you can use as collateral, you can still manage to find relatively low interest rate personal loans.

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Debt Consolidation through Balance Transfer

If you have several credit card debts, a balance transfer may be a great way to consolidate your debts.

Follow these simple steps and get your credit card debt consolidated:

  • Take out a new credit card with a low interest rate (preferably a one with a low teaser rate) or with 0% interest.
  • Transfer all your existing credit card balances to the new low interest card.

Once your balances get transferred to the new credit card account, you will be left with a single card to deal with. That in turn, will cause you to make monthly payments towards a single account. And the low interest rate would come as an added bonus, thereby lowering your monthly debt payments considerably.

However, balance transfer is recommended only when you are sure you can repay your debt within the trial period. Once the introductory period is over, the teaser rates vanish, and you are back to making large monthly payments.

It is also advisable that you decide to do a balance transfer; you familiarize yourself with Maryland's credit card and consumer protection laws.

How can a Maryland debt consolidation company help you?

If you do not have assets to get a secured loan and the idea of a balance transfer does not seem feasible to you, then you have yet another debt consolidation option ahead of you.

You may enroll in a debt consolidation program offered by a reputable BBB accredited debt consolidation company in Maryland and get your debts consolidated without much hassle.

A debt consolidation company usually requires an upfront fee when you enroll. Thereafter your debt issues are handled by the company. First, you debt situation is analyzed by one of the company's debt consolidation attorneys. The lawyer negotiates with your creditors to lower or eliminate your late fees and over-limit charges and helps you to get rid of harassing collection calls.

The lawyer also negotiates with your creditors to get you a repayment plan you can afford. The plan is devised so that you pay an affordable amount to the company every month, which is used by the company to pay off the monthly installments to your creditors and pay the debt management company's fees.

Loans eligible for debt consolidation in Maryland

  • Credit Cards Debts
  • Private Student Loans
  • Personal Loans
  • Medical bills
  • Payday Loans

How does Debt Consolidation in Maryland affect your Credit Score?

Debt consolidation is the safest option as far as credit score consequences are concerned. It has a minimal adverse effect on your score, unlike debt settlement or bankruptcy. This is because debt consolidation causes you to pay off your total debt amount, while with a settlement or bankruptcy you end up paying less.

When you take out a loan to consolidate your debts, your credit score initially goes down. However, your since defaulted accounts get paid off with the loan, your score gets an immediate boost.

Thereafter, as your consolidation loan gets paid off over time, your credit score increases.

Benefits of Maryland Debt Consolidation program

  • Puts an end to harassing collection calls
  • Reduces interest rates on your monthly payments
  • Avoids the hazards of bankruptcy
  • Late fees and over-limit charges get eliminated and debts get simplified
  • Leaves the least negative impact on your credit score
  • Paves way to an improved credit score

Things to avoid while in a Maryland Consolidation Program

Your need for a debt consolidation program stems from your inability to pay off your debts and your poor credit score. Therefore, it is important that you to take care of certain issues so you don't end up hurting your credit score further.

Keep the following in mind while you are in a debt consolidation program:

  • Do not to close your credit card accounts soon after you have paid them off, as it hurts your credit score. You may close most of your accounts, but keep your oldest account intact.
  • Do not to take out any new loans, while in a consolidation program, as it could decrease your credit score and report further.
  • Make timely payments, as on-time payments increase your credit score.
  • Do not resort to balance-transfers, especially if you apply for a new credit card in order to use the introductory interest rate. If you fail to pay off the transfer within the trial period, your interest rates will return to normal, and that might cause a huge injury to your credit score.
  • Do not apply for credit frequently, while in a consolidation plan. Applying for new credit will open up possibilities for new defaults.

Handled properly, debt consolidation could be the best means to improve your credit score. But a little carelessness and your credit score will decline. So, make an effort and abstain from any financial blunders while in a consolidation program.

Related information


State Attorney General Phone Number: (410) 528-8662
Public Service Commission Phone Number: (410) 767-8000

FTC Address:
East Central Region Federal Trade Commission 1111 Superior Avenue, Suite 200 Cleveland, OH 44114-2507
FTC Toll Free:
877-FTC-HELP (382-4357)
FTC Website Url:
CFPB Toll Free:
1-855-411-2372
CFPB E-mail:
info@consumerfinance.gov
whistleblower@consumerfinance.gov
CFPB Website Url:


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