Debt Relief Programs for Mississippi Residents
4 MIN READ
Published April 05, 2023 | Updated October 08, 2024
Written by Christie Hudon
Edited by Wes Silver
In a Nutshell
From the Mississippi Delta to the birthplace of Elvis, the Magnolia State offers quintessential Southern charm. While residents have much to enjoy across the state’s historical, urban, and rural settings, it’s a hard time for many Mississippians to thrive.
Mississippi has one of the highest poverty levels in the country, with 19% of the population living with little to no income. For some living in the Magnolia State, debt from credit cards, medical bills, or personal loans continues to pile up, making it harder to cover basic living expenses amidst rising inflation and high interest rates.
Choosing a professional debt relief program can help you break free from the cycle of debt. Read on to learn more about debt relief options for Mississippi residents.
Your Options To Get Out of Debt in Mississippi
Credit Counseling
Mississippi residents pursue credit counseling to learn more about overcoming financial challenges like debt.
| How It Works in Mississippi |
| Residents of the Magnolia State can sign up to receive one-on-one counseling through a nonprofit or private credit counseling program. Once you enroll, you can discuss your financial situation with a credit counselor and make an informed decision about how to handle your debt. |
| Pros |
| Credit counseling agencies offer financial education courses and personalized advice, helping you find the best option to relieve your debts. Credit counselors can also discuss your credit history and provide strategies to improve your credit scores. |
| Cons |
| Credit counseling requires a specific time commitment, as some organizations require you to take financial education courses to participate in their program. And while you will receive professional advice, you’ll still need to act on their suggestions to clear your debts. |
| Cost |
| Most credit counseling programs require a small fee for services that may be waived for low-income residents. |
| Stats |
| Although an effective choice for unbiased advice, more consumers in Mississippi and across the nation have chosen to pursue debt settlement instead of credit counseling over the past decade. |
| Resources |
| Learn more about credit counseling and how it can help you. |
Debt Management
Mississippi residents who need help organizing multiple monthly debt payments can get assistance through a debt management program (DMP). Along with some private organizations, most credit counseling agencies offer this service.
| How It Works in Mississippi |
| Debt management programs allow you to repay your debts through a single monthly payment. When you sign up with a DMP, you’ll send funds into an account that the organization uses to pay each creditor you enroll into the plan. |
| Pros |
| DMPs alleviate the burden of missed and late payments as long as you continue to pay your monthly amount to the organization handling your accounts. |
| Cons |
| DMPs require you to close out most, if not all, of your credit accounts and lines of credit to curb spending as you try to pay off debts. |
| Cost |
| You’ll pay a small enrollment fee (typically $30-40) to get started with a debt management organization. You’ll also pay a monthly fee for each account managed under the DMP, about $20-30 each. |
| Stats |
| Mississippi residents carry $65,547 in average consumer debt, making debt relief essential for those struggling to pay off high balances. |
| Resources |
| Read how debt management works to determine if it’s the right option for your financial situation. |
Debt Consolidation
Two common ways to consolidate debt include taking out a debt consolidation loan or transferring debt using a zero-interest balance transfer credit card.
| How It Works in Mississippi |
| Mississippi residents with fair to good credit scores can secure a loan big enough to cover all their unsecured debts through a traditional bank, online lender, or credit union. Another option is to open a zero-interest balance transfer card and move credit card balances to one card. Then, you can focus on paying the principal during the introductory period instead of spending more on interest. |
| Pros |
| A consolidation loan allows you to reorganize your debts into a single monthly payment, usually at a much lower interest rate. Opening a new credit card with no interest fees can help you pay down large balances on multiple accounts by moving everything to a single card. |
| Cons |
| If you don’t secure a loan at a lower interest rate, you’ll end up paying more for your debts over the course of the consolidation loan. Without a strong credit score, you could also find it difficult to secure a loan at a decent interest rate. |
| Cost |
| The amount you’ll pay for a consolidation loan depends on your total debt balance and the interest rate you secure with your lender. It’s important to calculate this before signing off on the new loan. You’ll typically pay a small transfer fee for each balance you move to the new credit card if you choose this option. |
| Stats |
| At 680, Mississippi has the lowest average credit score of all 50 states. However, this score is still considered “good” by FICO standards, making it likely that residents can still qualify for lower interest rates when securing a debt consolidation loan. |
| Resources |
| Read more about debt consolidation programs and how they assist consumers struggling with multiple debts. |
Debt Settlement
Choosing to settle debt can help you pay off large balances faster and at a reduced cost.
| How It Works in Mississippi |
| Magnolia State residents carrying heavy balances from unsecured debts can negotiate for a debt reduction on their own or through a debt settlement company. Once you enroll in a program, you’ll send monthly payments to the organization until you collect enough to make a lump sum payment to end your debt. |
| Pros |
| Leveraging the expertise of a debt settlement company is often effective for paying off your debt faster and reducing the total of what you owe by up to 50% (before paying fees to the organization). |
| Cons |
| Because you defer payments to save enough for a lump sum payoff, your credit score drops significantly while you wait to settle your debt. |
| Cost |
| Debt settlement companies typically charge 15-25% of your total enrolled debt in fees. |
| Stats |
| Major credit card debt is frequently a deciding factor when Magnolia State residents pursue debt settlement. The average credit card debt in Mississippi was $4,956 in Q4 of 2023. |
| Resources |
| Learn more about the debt settlement process and how it helps you save time and money when you pay off debts. |
Bankruptcy
Declaring bankruptcy can effectively clear most or all of your debts through the assistance of the court system. It’s important to consult with a bankruptcy attorney to learn more about the process before you begin.
| How It Works in Mississippi |
| Most Mississippi consumers file either Chapter 7 or Chapter 13 bankruptcy to manage and eliminate debts. |
| Pros |
| Bankruptcy gives you a fresh financial start because the court directs you to repay what you can and may cancel further debt beyond your ability to pay. |
| Cons |
| You may be instructed to sell off assets in order to pay creditors. Another important factor to consider is that bankruptcy negatively impacts your credit score for up to 10 years after you file. |
| Cost |
| Legal fees can cost nearly $5,000 depending on the complexity of your case and your attorney’s hourly rate. You’ll also pay filing fees plus any debts you’re ordered to pay through the court. |
| Stats |
| In 2023, a total of 8,779 Mississippi residents filed for some type of bankruptcy. |
| Resources |
| What’s life like after bankruptcy, and how can you restart your finances? Read more about the ways Mississippi consumers can start rebuilding after this process. |
What You Need To Know About Debt in the State of Mississippi
Statute of Limitations on Debt Collections in Mississippi
Mississippi has some of the shortest statutes in the nation, protecting consumers from creditors who want to pursue legal action to collect a debt. This means a creditor can only sue within 3 years of the last activity on your account to gain the money you owe.
Here’s a look at the types of debts that fall under these statutes:
| Type of Debt Agreement | Length of Time Collectible |
|---|---|
| Written Contracts | 3 years |
| Promissory Notes | 3 years |
| Open-Ended Accounts | 3 years |
| Oral Agreements | 3 years |
| Medical Debt | 3 years |
Student Loan Forgiveness in Mississippi
Mississippi loans money to students in high-demand fields such as education and nursing. To receive funds, students must agree to work a specific amount of time in the field after graduation. Once the contract is complete, the loan is canceled or forgiven, meaning the graduate is no longer responsible for paying back the loan.
Resources for Financial Assistance in Mississippi
After the pandemic, Mississippi stimulus checks helped many consumers with extra cash when they needed it most. Although these checks are no longer being issued, Mississippi residents can still get help through financial assistance programs such as the following:
- Temporary Assistance for Needy Families (TANF): This program offers cash assistance to low-income families with children to help residents with basic needs and provide job search help.
- Supplemental Nutrition Assistance Program (SNAP): Formerly known as Food Stamps, this program provides monthly benefits for low-income families and individuals to help them purchase nutritious foods.
- MississippiCAN (Mississippi Coordinated Access Network): The MississippiCAN program provides health insurance for low-income families, pregnant women, children, the disabled, and senior citizens.
- Child Care Payment Program (CCPP): CCPP offers financial assistance for child care tuition and some additional expenses for parents engaged in work, study, or other approved activities.
Get Professional Help Paying Off Your Debt
When your financial circumstances become overwhelming, it’s time to seek professional assistance. Using a debt relief program like TurboDebt helps you end high debt balances and get a fresh financial start.
With over 15,000+ 5-star TurboDebt reviews on Google and Trustpilot, we’ve proven our expertise as a trusted partner, assisting thousands of consumers in paying off their debts. We’ve already helped Mississippi residents save 56% of heir total debt (before fees).
Contact us today and experience our top-rated service. It’s time to start your journey toward debt-free living!
Areas We Serve Related Articles
