Maryland residents who are seeking debt relief will be glad to hear that, even in this challenging economy, there is some good news to report: credit card debt declined by 11 percent nationally in 2011. But there's bad news, too: credit scores also fell. But taken as a whole, financial experts believe that the news is primarily positive. Despite the dip in individual credit scores in Maryland and across the entire U.S., consumers have reduced their personal debt -- and that is definitely seen as a good thing.

The reduction in credit card debt occurred despite an end-of-the-year slow down in debt repayment. In December, only nine states saw consumer debt reduced from what it was in November. In six of the nine states that saw reductions, the debt was reduced by less than one percentage point, which is not entirely surprising considering it was the holiday season.

A couple of states actually saw a small increase in consumer debt between November and December 2011. The states with the greatest November to December increase in consumer debt were Delaware and Rhode Island. Both states saw an approximate 5 percent increase in credit card debt bringing their average debt per person to $7,423 and $6,388, respectively.

While all 50 states closed out 2011 with less consumer debt than they began with, not everything looked better in December. According to one report, although four out of five debt categories -- including credit card debt, student loans and home mortgages -- either remained steady or declined in 2011, consumer credit scores similarly declined in 2011.

Credit scores fell by a national average of eight points to an average FICO score of 660 in 2011. As readers in the Baltimore area know, credit scores are vital to consumers because the scores signal our ability to access credit and play a role in setting the terms by which we do so. While there are a number of factors that determine an individual's FICO or credit score, experts say it still is not clear why consumer debt fell along with credit scores.

Maryland residents who are currently faced with crushing debt should consider all of the available options for a financial re-start. For many people, personal bankruptcy can allow for the breathing room debtors need to get their finances back on track without losing all of their valuable assets. People in the Baltimore area with these concerns would likely benefit from consulting with an experienced bankruptcy attorney who can help achieve the debt relief Maryland residents deserve.

Source: Fox Business, "Credit card debts falls alongside credit scores," Maryalene LaPonsie, Jan. 25, 2011