Prices Are Rising Across Mississippi
Mississippi is used to flying under the radar, compared with other states. The Magnolia State’s most iconic native son is Elvis Presley… and he is primarily associated with Memphis, Tennessee. Oprah Winfrey, Walter Payton, B.B King, William Faulkner, Jim Henson, Tennessee Williams, Jimmy Buffet. The list of iconic Mississippians includes some of the country’s most recognizable names and faces, yet the state is still often overlooked.
For decades, there has been a silver lining to this. Mississippi regularly ranks as having the lowest cost of living nationwide, and expenses are almost 17% cheaper than the national average.
Unfortunately, this has also translated to low wages: even with low prices on housing, transportation, and groceries, 18.7% of Mississippians live in poverty. As the state grapples with skyrocketing inflation, ordinary families are paying the price.
Credit Card Debt in Mississippi
Due to relatively low incomes, it is easy to fall into high-interest credit card debt. When inflation keeps rising, everyday living becomes more expensive, and people use their credit cards in order to pay for their necessities. It doesn’t have to be spending on expensive clothing or fine dining, either. When incomes can’t cover basic needs, individuals and families often use their credit cards to make up for the gap.
The main problem with credit cards is that you can quickly build up owed debt, especially if you do not pay it back in full and only make the minimum monthly payments.
Minimum payments can turn into debt
Banks charge an interest rate on all money they lend. Credit cards, personal loans, car loans, and mortgages all have interest rates. Credit cards have the highest interest rate, which is why it is so easy to fall into credit card debt.
Minimum payments are the smallest payment you are required to make toward your credit card debt. The amount of the minimum payment depends on the overall balance on the credit card: higher balances come with higher minimum payments.
Minimum payments make you believe that you are paying off your credit card debt when in fact you are just paying interest. It will take you a long time to repay your credit card debt if you only make minimum payments.
The more you use your credit card, the more the balance increases and the more interest you are charged. That is how you enter a credit card debt trap.
What Causes Debt in Mississippi?
Whether it is credit card debt or the inability to pay other loans like student loans, personal loans, or medical debt, the causes of debt in Mississippi are simple and straightforward.
Mississippi residents enjoy a low cost of living compared to the national average — but also low incomes. With the current inflation pushing up the price of groceries, gas, and utilities, household income often can’t cover all expenses.
When the end of the month looms, people turn to their credit cards to pay for necessities if their income is insufficient.
Credit card debt builds up fast, especially if you only make the minimum payments. When income is low and expenses keep rising, debt becomes a spiraling trap.
Lack of an emergency fund
An emergency fund, just as its name suggests, is to pay for unexpected expenses. For low-income households who lack the ability to save, however, an emergency fund is often out of reach.
The problem is that emergencies happen. A health issue or a car that needs expensive repair can often lead to credit card debt if there is no emergency fund to fall back on. A health issue can easily turn into a $1,000 credit card debt and the average cost of car repair is around $500.
If a couple of such emergencies hit a household, it is natural to use credit cards to pay for them. Unfortunately, it is equally easy to max out the credit card and fall into debt. Thus, a simple emergency can soon spiral into thousands of dollars of credit card debt and require credit card relief.
Life events like job loss, unemployment, and divorce
Life events, just like emergencies, are usually unforeseen. Temporary job loss, unemployment, or if you have just gotten divorced, can shake a household’s finances. These are the times when you use your credit card for everyday necessities so that the household can keep running.
Unpleasant life events can upset your income. Credit card debts then increase and it becomes harder to pay for other loans. Debt collectors may soon be bothering you and you may be looking at a bad credit score.
Debt Solutions in Mississippi
People facing spiraling debt in Mississippi have several options for recovering their financial security. Some of the possible options include the following.
A credit counseling agency can help the average credit card holder get a better grasp on their budget. Counseling is aimed at increasing your financial literacy. The agency helps you understand how to manage your expenses in a way that makes space for debt payments and credit card payments.
Debt management services can help establish a Debt Management Plan (DMP) for longer repayment periods and possibly lower interest rates on your credit card debt. This debt management program helps you repay your debt in a manageable way that aligns with your income and other expenses and will help rebuild your credit score and credit report after you have completed your debt management plan.
When your credit card debt is no longer manageable, Americor debt specialists may suggest you choose debt settlement, as an option in dealing with debt problems.
As one of the top debt settlement companies, our debt relief programs include helping you secure a debt reduction. Specifically, we will negotiate with creditors or debt collectors to lower the amount you owe on your unsecured debt. This includes debt from credit cards, personal loans, and medical bills.
Americor debt settlement specialists are knowledgeable, trustworthy, and experienced: we aim for the reduction of your debt by 25 to 50% so that the remaining debt is easier to pay off while staying within your available monthly budget. Our company’s goal is to lead each consumer to a debt-free life.
Having your debt settled can pull you out of the debt trap and give you breathing space. It is important to have the financial freedom to pursue your dreams. While it will likely adversely affect your credit score, this should recover after a year or two, and your creditworthiness will soon improve.
Enrollment into a debt settlement program can be stressful but our certified debt specialists are here to help make the process as easy as possible.
Debt consolidation loan
In some cases, a debt consolidation loan can be an appropriate option for Mississippi residents.
If you have several credit cards or many different types of loans, you may apply for a debt consolidation loan that brings together all previous debts and loans under one loan. Instead of paying many different debts with differing interest rates, you have one monthly payment to make for one loan.
Consolidation loans can come with favorable repayment terms and lower interest rates than credit cards. Such loans make debt management more feasible and they help you recover your financial security. Once you have finished repaying your debt consolidation loan, you are debt-free and your financial future looks brighter.
When everything else has failed, your last option may be to file for bankruptcy. Bankruptcy is a serious step to consider because it impacts your credit score and it can stay on your credit record for 10 years.
When you file for bankruptcy, an attorney takes your case to the court and demonstrates that you are financially unable to meet your obligations. The attorney presents your income, level of debt, and all your financial history to the court, which will decide how much of your debt may be forgiven. This depends on your assets, level of income, and other criteria.
Depending on the specifics of each case, part of the agreement may involve the liquidation of some assets as part of the settlement.
Americor Debt Relief in Mississippi
Aside from credit card debt, Americor can support people in Mississippi by helping them deal with their personal loans, payday loans, and medical debt, as well as personal business debts and private student loan debt.
We can provide you with the right information and advice to help you reduce your debt during a free consultation with one of our certified debt specialists. Use our resources to help you find debt relief, get your loan debt paid off, and become debt free. Americor does not charge upfront fees, so take advantage of the debt relief services we provide, find the best one for you, and get started today on your journey to financial freedom.
Contact us today for assistance and learn how we can help to settle your debts with creditors and save you time and potential stress. Don’t let high-interest monthly minimum payments hold you hostage!
Check out a few of your Mississippi debt relief options below:
Our Clients Say...
“In 2020, I was drowning in debt. I enrolled in Americor for my 10 creditors for $110,000… and today (three years later) I have cleared my entire balance. It was not an easy process, but Americor guided me through and I am debt free!”
“I was down $80k in business debt, and I remember hearing Americor radio advertising. My credit score was down to 570 from 810. I’ve been in the program for over 3 years. It works, just be patient. And my credit score is currently back up to 710!”