Turbo Takeaways
- Mississippi has one of the highest poverty levels in the country, with 18% of the population living with little to no income.
- Mounting credit card and medical debt make it harder for families to cover everyday essentials.
- Debt relief programs in the Magnolia State give residents a way to reduce balances and rebuild their financial footing.
Your Options To Get Out of Debt in Mississippi
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.
For some residents of the Magnolia State, debt from credit cards, medical bills, or personal loans continues to accumulate, making it increasingly difficult to cover basic living expenses amid rising inflation and high interest rates. Debt relief can help you break free from the cycle of debt.
Read on to learn more about debt relief options for Mississippi residents.
Credit Counseling
Mississippi residents pursue credit counseling to learn more about overcoming financial challenges like debt.
How It Works
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 certified credit advisor and make an informed decision about how to handle your debt.
Pros
- Offers financial education courses and personalized advice
- Provides strategies to improve your credit scores
- Often available at low or no cost
Cons
- Some organizations require you to take financial education courses to participate in their program
- Requires consistent effort to follow advice
- Doesn’t reduce debt balances
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
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 in the plan.
Pros
- Combines multiple debts into one payment
- Can lower interest rates and waive fees
- Promotes on-time, organized repayment
Cons
- DMPs require you to close out most, if not all, of your credit accounts and lines of credit
- Monthly fees may apply per enrolled debt
- Doesn’t lower the total debt owed
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 an average of $65,547 in 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
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
- Simplifies payments with one monthly bill
- Consolidation loans can potentially lowers interest rates
- Opening a 0% balance card can help pay down large balances on multiple accounts
Cons
- Requires good credit for best terms
- May cost more if loan rates are high
- Risk of more debt if new credit is used
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 675, Mississippi has the lowest average credit score of all 50 states.
- However, this credit score is still considered “good,” making it likely that many residents can still qualify for lower interest rates when securing a debt consolidation loan.
Resources
Find out 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
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
- Expert negotiators handle creditor communication
- Can reduce balances by up to 50% (before paying fees to the organization)
- Shorter payoff time than most methods
Cons
- Temporarily lowers credit score
- Creditors may continue collection efforts
- Need to save enough for a lump sum payoff
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 $4,918 as of Q3 2024.
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 a bankruptcy attorney to learn more about the process before you begin.
How It Works
Most Mississippi consumers file either Chapter 7 or Chapter 13 bankruptcy to manage and eliminate debts.
Pros
- Provides a fresh financial start
- Stops most collection actions immediately
Cons
- Stays on credit report up to 10 years
- May require selling certain assets
- Legal and filing fees can be expensive
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 2024, a total of 8,867 Mississippi residents filed for some type of bankruptcy (PDF).
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 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.
Seek Professional Help to Pay Off Your Debt
When your financial circumstances become overwhelming, it’s time to seek expert assistance. Using a reputable debt relief company like TurboDebt® helps you end high debt balances and get a fresh financial start.
With over 20,000 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 their total debt (before fees).
Contact us today and experience our top-rated service. It’s time to start your journey toward debt-free living!