Doing debt consolidation in Mississippi can help break the cycle of payments with no end. If you’re struggling with debts, you should know that options are available to get your finances back on track. Consolidating your debts could be the first step to financial freedom. With determination and effort, you can break free from the cycle of the debtor and gain control of your life once again.
Mississippi residents are all too familiar with the challenges of debt. A staggering 7 out of every 100 borrowers have at least one bill over 90 days past due. The average credit score is a dismal 647, which is not surprising when you consider that credit users are currently maxing out almost 40% of their available credit. Anything higher than 30% credit utilization will result in a decrease in consumer credit scores.
Mississippi Credit Card Debt Stats
The next statics can give you an idea of Mississippi’s average credit card debt situation:
- Average credit card debt per household: $6,673
- Average available credit limit: $9,000
- Credit utilization ratio (debt vs. available limit): 37.7%
- Average number of cards: 2.57
- % of delinquent accounts (at least 90 days past due): 7.36%
- Average credit score: 647
- The most popular type of credit card: Secured
Options For Debt Relief In Mississippi
There are several options available to help manage and reduce debt. Debt consolidation involves combining multiple debts into a single loan, often with a lower interest rate than individual debts. A credit card balance transfer entails moving outstanding balances from one or more cards to another card with a lower interest rate. Home equity loans and lines of credit use your home’s value as collateral and can often offer lower interest rates than other types of loans. By carefully considering all of your options, you can find a debt management strategy that best suits your needs.
Consolidation loans can be a great option to save money and simplify your monthly budget. By doing debt consolidation in Mississippi all of your debts will combine into one loan with a lower interest rate, and you can potentially save hundreds or even thousands of dollars in interest over the life of the loan. In addition, having only one monthly payment makes it much easier to stay on top of your finances and avoid missed or late payments.
For many people, their home is their biggest asset. Tapping into the equity in your home can be a great way to get a handle on your debt. However, it’s important to remember that you are putting your home at risk by doing this. You could lose your home entirely if you can’t repay the money you borrow against your equity.
Refinancing means replacing your current loan with a new one – often with more favorable terms. For example, you may get a lower interest rate, monthly payment, or a shorter or longer loan term. You can also refinance student loans, which may help simplify your monthly payments by consolidating all your obligations into one bill. However, remember that refinancing federal student loans disqualifies you from any forgiveness programs you might be participating in.
Balance Transfer Cards
Consolidating your credit card debt with a balance transfer can give you breathing room to pay down your obligations. However, you will need excellent credit to qualify for cards with the longest 0% introductory APR offers. These cards often come with a balance transfer fee, which can add to your debt burden. The key to success with a balance transfer is ensuring you can pay off the balance before the 0% promotional period ends. Otherwise, you risk being hit with high-interest fees and ending up in even worse shape.
Bankruptcy may not be the most desirable option, but it is an option to consider when you’re feeling desperate. It’s important to know that bankruptcy will stay on your credit report for a long time – 10 years for Chapter 7 and 7 years for Chapter 13. Even so, it’s a chance to get rid of your debts and start anew, which could make it worth considering depending on your circumstances.
Statute Of Limitations
Debt doesn’t last forever, but different kinds of debt can ding you for varying amounts of time.
The statute of limitations on debt dictates how long a creditor has to pursue you in court for an unpaid debt. Once that window has closed, so has their window to sue you. However, they can continue to try to reclaim the money by other means, including phone calls and letters. It’s important not to make a payment on a debt that’s past its statute of limitations — or even promise to make a payment — because that can restart the clock all over, giving creditors another chance to sue.
The statute of limitations varies depending on the nature of the debt and the state in which it was incurred. If we’re talking about an open account, it’s three years from the time the account went into default; if we’re talking about a note, it’s three years from when the note was signed.
Refer to the table below to learn more about Mississippi’s statute of limitations on a wide variety of debt.
|Mortgage Debt||3 years|
|Medical Debt||3 years|
|Credit Card||3 years|
|State Tax Debt||7 years|
|Auto Loan Debt||6 years|
There’s no shame in admitting that you’re in over your head with debt. The important thing is to take action and not just sit around feeling helpless. Take a close look at how you got into this situation and develop a plan to avoid being in debt in the future. Do whatever it takes to get back on solid financial footing.