Find the Best Debt Consolidation in Baltimore, MD

Debt relief programs in Baltimore

Given Baltimore’s above-average cost of living, it’s no wonder residents are searching for financial help. Debt relief comes in many forms, but the two most common methods are debt settlement and debt consolidation.

• If you need help managing debts from multiple creditors, debt consolidation is a wise choice. Debt consolidation companies combine all of your outstanding debt into one loan, allowing for simplified payments with a lower interest rate. Debt consolidation is a great option for Baltimore residents with solid credit scores.
• Debt settlement may be a better option if you have an overwhelming amount of unsecured debt and you’re struggling to stay on top of payments each month. Debt settlement companies negotiate with creditors to settle your debt for less than you owe. Debt settlement has a more negative effect on your credit score than debt consolidation.

Both debt consolidation and debt settlement companies in Baltimore have requirements for their programs, such as minimum credit scores or a minimum amount of unsecured debt. Unsecured debt is a term that describes debts with no collateral, like credit card debt.

How to find debt relief in Baltimore

When you’re looking for a debt relief company in Baltimore, follow these steps to evaluate whether one’s right for you:

1. Find out what type of debt relief the company offers. Does it specialize in one particular method? Don’t let yourself get sucked into paying for a service you don’t think you need.
2. Check out how the company offers its services. Are you required to attend in-person appointments or are there online services? If you have questions about your program, does the company have a preferred contact method?
3. Compare the company with other Baltimore debt relief providers. How do its prices, services and guarantees match up? Read consumer reviews to see whether its former clients are happy.
4. Schedule an initial consultation. Ask any questions you have that you couldn’t answer online. Have the representative explain the company’s process in detail and set your expectations.
5. Finally, ask potential debt relief companies about credit score requirements. Usually, there’s only a credit score requirement for debt consolidation, not debt settlement. This is because you need a solid credit score to get a low interest rate on your debt consolidation loan. If your interest rate is too high, you could end up with one monthly payment that’s as high or higher than what you were paying.

Debt relief cost in Baltimore

The total cost of debt relief in Baltimore depends on the service you choose and the amount of debt you have.

• Debt settlement companies typically charge a fee that’s 15% to 20% of either your total debt or a percentage of the amount you save.
• Debt consolidation companies make money from the interest on your loan, which is normally anywhere from 14% to 36%, depending on your credit profile.

Credit counseling, another type of debt relief, is sometimes available at no cost. Credit counselors give you advice on managing money and debt, help you put together a budget and offer other financial education resources.

Baltimore debt relief FAQ

Do debt relief companies hurt your credit score?

Debt consolidation may initially hurt your credit score after a hard inquiry, but your credit score should improve as long as you make on-time payments and don't continue to use your credit cards. Debt settlement typically has a longer-lasting effect on your credit score; settled accounts ordinarily stay on your credit report for seven years. Work with your debt relief company to find a solution that lowers your debt while minimally impacting your credit score.

What questions should I ask a debt settlement company?

When reviewing potential debt settlement companies, ask them the following questions:

• Can you provide references from past clients?
• Do you accept online payments?
• What is your success rate?
• What fees do you require?
• When can I expect my first settlement?
• What is the timeline for this process?
• What will this process do to my taxes?

Can I get a loan after debt settlement?

Potentially, but you should expect a more difficult approval process and a higher interest rate. While debt settlement does hurt your credit, the impact is not as severe as a bankruptcy.

Is debt consolidation risky?

There is risk with any loan, but the risk involved in debt consolidation is low as long as you make your payments on time and don't continue to accumulate debt.

Is debt relief a good idea?

If your existing financial status is a burden, debt relief services can help. Make sure you work with a reputable company and anticipate any potential risks. While credit counselors can offer advice, it’s up to you to pick the right strategy to manage your debt.