If you're juggling multiple bills in Maryland and making on-time payments isn't easy, you may consider going for Maryland debt consolidation. With this option, you merge your bill payments into one consolidated payment per month at low interest rate negotiated with a consolidator.
Ways to consolidate your bills in Maryland
There are 3 ways to consolidate bills and get relief from the burden of monthly repayments. Read on to find out how you can consolidate your debts.
Consolidation program:
Here, you enroll with a Maryland consolidation company that analyzes your personal finances to find out how much you can pay each month. The consolidator negotiates with creditors and CAs to decrease your interest rates and creates a plan that can help you repay your bills without incurring late fees and over-limit charges. This kind of plan will protect you from creditor or collection agency harassment. Find out the details...Consolidation loan:
This option allows you to pay off your balance on different accounts with a lump sum payment. A consolidation loan is easier to manage because the interest rate and monthly payments are quite low. Learn more...Do it yourself consolidation:
This is where you negotiate and consolidate bills on your own. For instance, if you have credit card debt, you may consider transferring the balances from different cards into a low interest card or one with a 0% introductory rate period lasting for 12-15 months. Doing this makes it easier to repay your card balances with no or low interest payments. Find more details from the article on Do it yourself consolidation.
Avg credit card debt: $6,106
Delinquency rate on (credit card): 1.68%
Mortgage debt: $251,027
Delinquency rate on (Mortgage): 3.01%
Auto loan debt: $18,714
Delinquency rate on (Auto loan): 1.27%
Unsecured personal loan debt: $12,168
Delinquency rate on
(Unsecured personal loan): 2.27%
Maryland debt consolidation - Warning signs that you need it
Whether you're in Baltimore or any other city in Maryland, the best time to go for debt consolidation Baltimore or Maryland is when you come across the 7 warning signs below.
- You're using your cards for daily items like food/gas.
- You've used up your IRA or 401k money to pay off bills.
- The unpaid balance on your cards has exceeded the credit limit.
- You find it hard to pay the minimum amount on your cards.
- Creditors are sending notices about delinquent accounts.
- You've charged more than you're paying each month on your cards.
- It's getting difficult to keep track of multiple payments at varied interest rates.
Maryland debt settlement - How it can help you
Maryland settlement programs can help you reduce your outstanding balances. Under this kind of program, a Maryland debt settlement company negotiates with your creditors and collection agencies so that you pay less than the total amount of money you owe. Depending on the amount you owe, you may be able to save a significant percentage of your unpaid balance. However, Maryland settlement companies do ask for upfront and monthly fees as well as a certain percentage of the amount you save through settlement.
Risks associated with debt consolidation Baltimore and Maryland
When you're consolidating your bills, there are certain risks you should avoid. The risks are:
Companies making false claims
Being a victim of advance-fee fraud
High interest on a consolidation loan
6 Benefits of Baltimore and Maryland consolidation
Here's how consolidation helps you get relief from the burden of managing several bills.
- Interest rates on your bills are lowered so as to reduce your monthly outgoings.
- Creditors and CAs may stop harassing you with phone calls/letters.
- You may not have to pay over-limit charges for exceeding your credit card limit.
- You don't need to keep track of multiple bills and deal with a number of creditors.
- You can pay off the dues fast and raise your credit score.
- You don't need to file a bankruptcy.