Maryland Living Comes at a Price
With its central location on the country’s Atlantic coast, the state of Maryland is widely recognized as a great place to live.
Due to its proximity to DC, the state is home to the highest per capita percentage of federal employees but it is also home to a thriving public sector and a highly educated workforce. Throw in the big city vibrancy of Baltimore, the natural beauty of the Chesapeake Bay, and the rich colonial history of Annapolis, and it is easy to see why Maryland is so popular.
That popularity comes at a steep price, though. At $94,384, Maryland’s median household income is currently the highest in the country. House prices in Maryland are higher compared to the national average and many goods and services are more expensive.
For residents without a six-figure salary working and living in Maryland can be challenging, especially if they carry student loan debt or other debt. The past pandemic combined with high inflation has created a cost-of-living problem.
In addition to topping the country in several enviable metrics, Maryland is also ranked 6th in credit card debt, with an average outstanding balance of $6,946. When people find it hard to make ends meet, they turn to their credit cards to pay for petrol, gas, and groceries.
What Causes Credit Card Debt in Maryland?
Because of the high interest rate credit cards typically carry, it is actually easy to fall into credit card debt and short term loan debt. When Maryland residents find themselves in a tough spot and search for relief options, it only makes sense they will use their credit cards to pay for necessities or for unexpected expenses.
Low incomes combined with high inflation and high cost of living make it difficult to cover all the necessities a household needs. When income is not enough to cover your living expenses, credit cards seem like a good solution.
But credit cards are a type of loan that needs to get repaid regularly. When you don’t pay your credit card balance, you risk being delinquent on your credit card debt. In Maryland, credit card delinquency rates are 7.4% and have been rising.
If you use your credit card too often without making regular payments, you may soon find out that you can’t afford to repay your credit card balance.
Unexpected events usually come at the most inconvenient times. A broken car or a necessary home repair can wreak havoc on your household budget. A medical emergency generating medical bills without insurance coverage may also lead to medical debt.
Maryland residents with a comfortable income usually set aside an emergency fund to cover unexpected costs that might arise. But when income is tight, and especially if a household already has accumulated debt from a home loan or a student loan, such funds are simply out of reach. Without an emergency fund, an unexpected expense is often paid for by credit card.
But credit card balances have to get repaid. When you don’t repay them or only make minimum payments, the debt balloons and escalates to unmanageable levels. That’s when you need Americor and our professional debt specialists to guide you toward loan debt relief and financial security.
Paying only minimum monthly payments
It is very easy to just pay the minimum payments on your credit card balance. But you have to remember that such a strategy will take you years to pay off your credit card debt.
Banks charge interest on any loan or credit card balance: after all, that’s how they make money. The minimum monthly payment is calculated based on the size of your balance. Larger balances come with higher minimum payments. Most of the minimum payment is just interest and very little goes towards repaying the actual money you have borrowed from your credit card.
Minimum monthly payments perpetuate your credit card debt and keep you in a debt spiral. With the right financial advisors from Americor, you can reach financial stability and escape from your credit card debt. Contact us today and get help with debt relief.
Maryland Debt Relief Programs
When consumer debt is high, making minimum payments can simply wind up digging you further into a hole. Many Maryland residents are finding this out firsthand.
Instead of getting trapped by high-interest minimum payments, Maryland borrowers are now looking for debt management programs that actually help them move forward. That type of savvy thinking is one of the reasons the state was ranked in the top 15 in financial literacy.
The first step to tackling debt is to understand what happens when you make minimum monthly payments and what options you have to get out of your credit card debt. Americor provides debt relief via debt settlement and debt consolidation. Call us or fill in the form on our website for a free consultation.
Debt relief programs available in Maryland include the following…
Credit counseling in Maryland
Certified debt specialists can help with your credit report and loan debt relief. They will look into your debt, income, and expenses and explore several solutions.
Our Americor specialists can help you get a grasp of your financial situation. Together, we can find debt relief options for you and design the perfect debt management program for getting you out of debt, with a proper budget, money management, and strategies that work for you. Every plan is custom-made to fit your way of living, your expenses, and the level of your debt.
As a Maryland resident, you deserve a fresh start. You don’t have to drown in credit card debt. Professional credit counseling can help you make a fresh start in your life and stabilize your finances.
Debt consolidation loans
Debt consolidation loans can help you gather all your outstanding debts in one low-interest loan.
Credit cards come with high-interest rates. If you have several credit card debts you could secure a debt consolidation loan with a low-interest rate. You will have to pay the loan but you will benefit from better repayment terms and lower interest rates. It’s also easier to manage one single debt rather than multiple credit cards with various balances and different interest rates.
However, debt consolidation could impact your credit score and you can’t negotiate a debt consolidation loan if your credit score is already low. Also, it can take years for you to repay the loan so it’s a long-term solution.
If you are looking for ways to manage your debt, debt settlement is a viable option in Maryland.
Americor debt specialists can negotiate with your creditors – usually banks and financial institutions – to reduce the amount of debt you owe them.
Through debt settlement, you can erase part of your debt and agree to repay the rest. The remaining debt is usually paid as a lump sum to your creditor but can sometimes be spread out over several months.
During debt settlement, your level of income, credit score, expenses, and other criteria are taken into consideration. Americor specialists present your unique case with the right documents and a sound strategy to get you out of debt.
Debt settlement can impact your credit score negatively. That means that it could be difficult in the future to secure a car loan or a personal loan. However, your credit score increases with time and with sound financial management.
Debt management in Maryland
People with credit card debt may require debt management services. Debt management helps you stay on top of your debts by renegotiating terms with your creditors. Together with your Americor debt specialist, we will create a Debt Management Plan (DPM) to negotiate lower interest rates with banks and financial institutions. Our DPM can waive late fees if you were delinquent on your credit card payments and we can restructure your debts through manageable payments that match your income and expenses.
Debt Management Plans are tailor-designed to fit Maryland residents. One plan might work for one Marylander but not for another. That’s why Americor offers you a personalized debt management program that works for you.
When debt settlement and debt management can’t work and you find yourself sinking into credit card debt, relief can come from filing for bankruptcy.
Bankruptcy is a legal process that involves you and your creditors. It’s a lengthy process that requires the assistance of an attorney who will present your case to the court. Through bankruptcy, you can have part or the whole of your debt discharged but at the expense of a lower credit score. You also might be asked to sell part of your assets to cover part of your debts.
Create an Actionable Strategy with Americor
Debt management in Maryland comes in many shapes. With the help of Americor debt specialists, you can have sound professional advice and together we can find the right debt relief option for you. The goal is to give you back your financial freedom and a debt-free life.
Our Clients Say...
“In 2020, I was drowning in debt. I enrolled in Americor for my 10 creditors for $110,000… and today (three years later) I have cleared my entire balance. It was not an easy process, but Americor guided me through and I am debt free!”
“I was down $80k in business debt, and I remember hearing Americor radio advertising. My credit score was down to 570 from 810. I’ve been in the program for over 3 years. It works, just be patient. And my credit score is currently back up to 710!”