Maryland Debt Consolidation

Usually, consumers do not intend to get into trouble with their debt. Sometimes it creeps in slowly, and other times a huge financial hurdle is thrown at them, making it impossible to avoid debt. When you face debt problems, the state of Maryland offers some programs that can help.

Maryland Credit Counseling and Debt Consolidation

One of the first options consumers should consider when dealing with debt issues is the help of a credit counselor. Credit counselors teach consumers about managing their money. They often work on budgets with the individual’s help, and may even teach consumers how to deal with creditors and negotiate better terms.

Finding a reputable, ethical credit counselor is essential. Some companies claim to be non-profit organizations, but instead of providing help and support, they simply charge high fees and send out pamphlets and brochures. The Maryland Attorney General’s office recommends the Consumer Credit Counseling Service (1-800-642-2227) or the National Credit Counseling Service (1-800-388-2227) for consumers dealing with debt.

Do not be afraid to look into debt consolidation programs. If you can learn to be disciplined with your money, you can get into a better financial situation by consolidating some of your debt into one loan. Make sure the new loan has a better interest rate than what you are already paying, and make sure that you do not add to the debt in any way when you have consolidated.

Maryland Debt Relief Programs

Maryland debt relief programs take a more hands-on approach to helping debtors. They may take payments from the debtor and send them to the creditor on the debtor’s behalf, working with automatic drafts and other formats to help ensure that the bills get paid in a timely manner. They may help negotiate a debt settlement or new terms that are more favorable for the consumer. While these are things that consumers can do on their own, some find that having a third party resource helps them get the job done better.

Maryland Debt Collection Laws

Debt collectors and debt collections agencies in the state of Maryland must follow a series of laws that are found in the Fair Debt Collection Practices Act. This act stipulates the way in which these agencies can collect information about debtors and attempt to collect the actual debt for their clients. When trying to contact a debtor, debt collectors:

• May contact via phone, email, fax, telegram, letter, or in person. They may not contact with a postcard.
• May contact third parties, but only to ask for contact information. They may not disclose that they are trying to collect a debt.
• May call, but only between the hours of 8:00 a.m. and 9:00 p.m., except in situations when the debtor gave permission.
• May call at work, but must stop if the employer indicates this is not allowed.

When they are talking to you about your debt, the debt collector must not use foul or harassing language. They may not threaten you, nor may they intentionally deceive. They must identify themselves, and they must send you a letter after the first contact indicating the debt they are collecting, who the creditor is, and what you can do if you feel the debt is not yours to pay.

You have the right to stop the debt collector’s actions. All you have to do is inform them, in writing, to stop. Send the letter as a certified letter, so you can ensure that they get it. The only time the debt collections firm may contact you after they get the letter is to inform you about something changing in regards to your debt.

In addition to those practices outlined in the FDCPA, Maryland’s debt collections laws state that the original creditor must comply with most of the provisions of the FDCPA. The exception is in regards to disclosures. Original creditors do not have to, for example, verify the validity of the debt.

Under Maryland’s statute of limitations, creditors must start legal proceedings within a set period of time if they wish to sue. In Maryland, all four major types of debt have a statute of limitations of three years.

Maryland’s wage protection amount for most of the state is the greater of 75 percent of wages or $145 per week. Debtors living in Queen Anne’s of Worcester, Kent, or Caroline counties have a wage protection amount of 75 percent of the wages or 30 times the federal minimum hourly wage, again whichever is greater. Debt collectors can charge up to six percent for their services.

Maryland Mortgage Assistance

The Maryland Mortgage Program offers assistance for homebuyers in the state. The Community Development Administration has a variety of mortgage programs with low, fixed rates. For instance, those with credit history problems can get government backed loans with the help of the Maryland Mortgage Program. These loans allow homebuyers to rely on their income, rather than their credit score, when seeking mortgage approval.

One of the biggest setbacks that homebuyers face is the cost of the down payment and closing costs. The Community Development Administration offers a down payment and closing cost assistance program. Any borrower who qualifies for the Maryland Mortgage Program can get help through the Downpayment and Settlement Expense Loan Program. These small, short-term loans cover down payment costs so buyers can get into a home faster.

Maryland also offers the House Keys 4 Employees program. This unique program helps homebuyers by offering government assistance that is matched by the buyer’s employer. Those who work with participating employers can get even more money to help them with buying a home. To learn more about the Maryland Mortgage Program, visit www.mmprogram.org.

If you already own your home but find yourself facing a difficult financial time, call the Maryland HOPE Hotline to find out what you need to do to avoid foreclosure. This number is 1-877-462-7555.

Maryland Government Assistance Programs

In addition to these programs, Maryland offers a few government assistance programs to help those struggling with college education debt. For instance, the Janet L. Hoffman Loan Assistance Repayment Program offers loan repayment money to those who are working in select community service roles and who earned certain degrees in Maryland colleges. To learn more about these programs, visit the Higher Education Commission at www.mhec.maryland.gov.