Mississippi Debt Relief
17 MIN READ
Published April 05, 2023 | Updated November 10, 2023
In a Nutshell
Many debt statistics stand out when it comes to the state of Mississippi, helping explain why many residents have difficulty controlling their debts. One of the most notable facts is that Mississippi has the lowest average credit score in the country, at 675. This is not good news if you're trying to manage your finances—but the good news is you can find debt relief in Mississippi.
TurboDebt can help you get control over your debt and get you back on track with your finances. Among our strategic planning, advising, and consulting services, we specialize in negotiating with lenders and debt collectors so that they'll accept less than what you owe them to settle your debts. In this post, we'll share some statistics on Mississippi debt, debt relief options, and how TurboDebt can help you become debt free.
Mississippi Economic Situation
Mississippi is a southern state located in the United States, bordered by Tennessee to the north, Alabama to the east, Louisiana to the south, and the Mississippi River to the west. The state has a rich history and culture, with a population of approximately 2.9 million.
Various industries, including manufacturing, energy, and tourism, drive Mississippi's economy. The state's fertile soil makes it an ideal location for agriculture, with crops such as cotton, soybeans, and corn as major contributors to the economy. Additionally, manufacturing plays a significant role in the state's economy, particularly in the production of goods such as furniture, textiles, and automobiles.
Despite its economic strengths, Mississippi faces significant debt challenges. The state has a high poverty rate, with nearly one in five Mississippians living below the poverty line. This has led to a substantial debt burden for the state, with government debt totaling approximately $7.4 billion as of 2021. Addressing this debt burden is critical for Mississippi's economic growth and the well-being of its residents.
How Does Debt Relief Work in Mississippi
Mississippi residents have several options for debt relief, including debt consolidation, debt management plans, debt settlement, debt negotiation, and bankruptcy. To determine the best debt relief program in Jackson, Gulfport, Southaven, or another Mississippi city, it's important to consider factors such as the type and amount of unsecured debt, the borrower's credit score, and their ability to make monthly payments.
Seeking guidance from a financial advisor or credit counselor can also help in finding the right solution for one's specific needs. Ultimately, debt relief aims to help individuals, families, and groups achieve financial stability and freedom from debt.
Debt and Finance Statistics in Mississippi
Average Consumer Debt
Consumer debt includes credit card balances, student loans, auto loans, and personal loans. As of 2022, Mississippi recorded an average consumer debt of $62,039, increasing from $60,615 in 2021.
Credit Card Debt
Credit card debt in Mississippi is the third highest in the country, making debt relief options in the state extremely important. Mississippi residents average $5,134 in credit card debt which is shy of the national average of $5,221.
Auto Loan Debt
Mississippi has a population of over 3 million people, meaning many people are buying cars. In fact, Mississippi is among the states with the highest amount of auto loan debt in the country. It's currently ranked 10th, with a car loan balance of $5,780, which is more than the national average of $5,210.
Car owners in the Magnolia State also pay some of the highest monthly payments in the country at $489.55. The high rates are partly due to the lower FICO scores among borrowers in Mississippi that make interest rates high, causing auto loan debt to soar.
Mississippi has a relatively low average mortgage debt of $139,800 compared to other states in the U.S. However, many homeowners in Mississippi have a mortgage debt greater than the value of their homes. This highlights the need for financial education and support for homeowners in the state.
Mississippi also experienced a decline in home demand, with the percentage of sales dropping 23.4% from 2022 to 2023.
Student Loan Debt
Mississippi is ranked 15th in the nation for federal student loan debt, with an average of $37,123 in outstanding balances. Despite the low average, student loan delinquency rates in the state are higher than the national average.
Mississippi has one of the highest poverty rates in the country, at 19.4%. On average, a household in Mississippi owes over $60,000, a high figure compared to the state's median household income of just $49,111.
Although bankruptcy filings have trended downward across the country in the past decade, Mississippi saw a total of 7,730 bankruptcy cases filed in 2022. Of these, 3,390 were Chapter 7 cases, 23 were Chapter 11, and 4,316 were Chapter 13 bankruptcy cases.
Average Income and Employment
The level of unemployment in Mississippi was slightly below the national average at 3.4% as of March 2023.
In 2022, Missouri’s average credit score sat at 680, the lowest in the country. While the situation is dire, it doesn’t mean that it can’t be salvaged. Working with a debt relief company like TurboDebt can help Mississippians tackle their debts and start their journey toward financial freedom and an improved credit score over time.
Mississippi had a total of 10,260 identity theft reports in 2022. Credit card fraud makes up the largest percentage of cases across the country at 44%, with online account fraud ranking close behind at 28%.
Banking and Tax Info
Mississippi has a state sales tax of 7%, with an additional local tax of up to 3%. The state's banking sector is dominated by community banks, with a few large national banks present.
Mississippi also has some of the highest rates for unbanked households, with over 5% of individuals choosing to access funds through different options such as online accounts or payday loans. These alternatives can lead to debt due to fees and fiscal mismanagement.
TurboDebt Helped Mississippi Residents Get Out of Debt 2022
TurboDebt has been helping residents of Mississippi who struggle with debt for many years. In 2022, our company worked with a total of 1,650 clients, helping them work towards eliminating their debt. We also enrolled 456 customers into our debt relief programs.
The total enrolled debt in Mississippi was $8,482,835, with an average client enrolled debt of $18,603 at a saving percentage before fees of 56.04%. That means our experienced team managed to save customers a total of $4,753,781 before fees in 2022.
Top Types of Debt to Get Relief from in Mississippi
Credit Card Debt
The average Mississippian has $5,134 in credit card debt. It's not just affecting the people of Mississippi—credit card debt is a national problem, as indicated by a national average of $6,194.
If you've got credit card debt, it can be hard to know where to start when it comes to paying it off. That's why TurboDebt can help. We'll work with you to find the right repayment plan that fits your budget and lifestyle, so you can finally get back on track.
The number of divorces in Mississippi has been increasing since 2009. In fact, in 2017, there were over 15,000 divorces in the state. Many Magnolia State residents are looking to get their financial lives back on track after having to deal with the legal process and costs of a divorce.
TurboDebt is here to help you with your divorce debt. We have helped many Mississippians take control of their finances and pay off their credit cards after going through a divorce.
Starting an LLC in Mississippi will only cost you $50 in filing fees and a further $25 for applying for a business license. The state also has a low tax burden, making Mississippi one of the cheapest places to start a business.
Given the favorable climate, many people start businesses in Mississippi while some businesses migrate into the state. This doesn’t always go to plan, though, as we see many people enroll in our programs due to business debt. If this is something you’re struggling with, know that our experts are well-versed in business debt, including your best options for relief.
Medical debt in Mississippi is a problem that's getting worse. An estimated 1 in 10 adults in the U.S. carry medical debt. That's nearly 23 million people struggling to pay their medical bills and facing difficulties securing life-saving treatments due to debts.
If you're struggling with medical debt, you may also have a harder time securing a loan or finding affordable housing. That's why TurboDebt is here—to help you manage your medical debt so you can focus on what matters most: your health and well-being.
According to the U.S. Census Bureau, there are 2.9 million homeowners in Mississippi. Homeowners with a mortgage are reported to have, on average, $135,374 in outstanding balances in Mississippi. That's a lot of people who have taken out a loan to buy their home and carry a mortgage on it. And the interest rates on these loans can be pretty high—especially if you're late on payments.
But don't worry! A few factors that can help you determine if a homeowner debt relief option in Mississippi is right for you:
- Your credit history is less than six months old (you haven't had any other credit cards or loans)
- You were not aware when you took out the loan that your lender could sue you for missing payments
- Your lender has not begun foreclosure proceedings against you
Mississippi made the list as number 48 on the best states for retirement ranking. Although one of the best states in terms of cost of living, high poverty and low quality of life put the Magnolia State near the bottom.
If you’re among Mississippians with few retirement savings or have retirement debt, you still have options. With TurboDebt, you can work towards eliminating debt so you can start saving money and prepare for a comfortable retirement.
Options for Debt Relief in Mississippi
Payday loans, medical bills, and credit card debt are some of the top types of debt that Mississippians seek relief from. While there are many debt relief programs people can enroll in to eliminate these debts, here are some options for relief in the state:
Debt Management Programs
Debt management programs are often the best option for people who need to pay off a lot of debt quickly. They offer a way to pay off your debts in a single monthly payment rather than paying them off individually.
You can set up a plan tailored to your situation and choose how much of your income will go toward paying each debt.
Debt Consolidation Loans
Debt consolidation loans are a popular option for Mississippi residents who need help managing multiple debts. These loans can help you pay off multiple smaller debts and get you back on track with your finances.
A debt consolidation loan allows you to combine all of your debts into one single loan. This makes managing your money easier—you'll only have one bill to worry about instead of several different ones. If you have good credit, you can typically secure a loan with lower interest rates than what you'd pay on separate delinquent accounts.
Debt settlement is a popular relief option in Mississippi that can help turn your unsecured debts into one simple monthly payment. With this option, you or a representative can choose to negotiate with debt collection companies to lower the amount of your debt, often by up to 50%. Mississippi residents often choose to negotiate with creditors through debt settlement companies that handle the settlement and set up their monthly payments.
Credit counseling can also prove a great place to start when you have an overwhelming debt. A credit counseling organization helps you learn about your options and choose the best debt management solution for your situation. A credit counseling agency can also help you develop a payment plan that fits your budget and allows you to pay off your debts over time. Although they offer education and advice, a credit counselor acts only as an advisor and doesn't actually set up or administer your payments.
Bankruptcy is a legal process in which an individual or business files for protection under the federal bankruptcy code to relieve themselves of their debts. Bankruptcy is typically reserved for individuals who have incurred massive debt and can no longer pay it back—for example, because they have suffered a job loss or some other serious financial setback.
Bankruptcy can also be used as a business tool to reorganize a company's debts and make it more financially viable. In this case, the court will appoint a law firm to oversee the process and ensure that all creditors are paid what they are owed.
Individuals typically file for Chapter 7 or Chapter 13 bankruptcy, while Chapter 11 is often used for businesses. If you choose to pursue bankruptcy, keep in mind that it will affect your credit for up to 10 years. Seek advice from a legal professional to learn more about your bankruptcy options.
Debt forgiveness is a process where creditors agree to forgive or cancel some or all of your outstanding balance instead of requiring you to pay it back. This uncommon form of debt relief is typically offered through government programs at the state or federal level.
Most programs have strict requirements based on factors like your job or your income level, and you'll have to qualify to earn debt forgiveness for areas such as student loans, taxes, or your mortgage. It's also important to note that you may be required to count the amount of debt forgiven as part of your income for tax purposes.
Debt and Financial Hardship Resources
If you are in financial hardship and need help, there are nonprofit organizations available to you in Mississippi, such as:
Temporary Assistance Programs
Mississippi's temporary assistance programs can assist with paying rent, utilities, medical bills, and other expenses.
The Mississippi Department of Human Services offers Temporary Assistance for Needy Families (TANF), which provides cash assistance to low-income families with children.
State Health and Human Services
The Mississippi Department of Human Services (MDHS) provides emergency cash assistance to help people experiencing an immediate crisis pay for basic needs such as food, clothing, and shelter.
Child care is a necessity for many families, and it can be challenging to find reliable child care that's affordable and accessible. Mississippi has some of the country's lowest state funding for child care.
The Mississippi Child Care Assistance Program (CCAP) will pay for all or part of your child care expenses while you work or look for work, attend school or training, or participate in other activities as defined by the state.
The Mississippi Department of Human Services provides childcare assistance to eligible families in need.
Shelters for the Homeless
If you or someone you know is homeless, nonprofit organizations are available to help.
- Mississippi Coalition for Homelessness: This organization provides advocacy for people experiencing homelessness and assistance for those who want to help them. They also provide information on accessing services such as Food Stamps and Medicaid.
- Youth Emergency Services & Shelter (YES): YES offers emergency shelter for youth ages 17 and under, including those homeless or at risk of becoming homeless due to abuse or neglect by parents or guardians.
Free Transportation Services
If you need help getting to medical appointments or other essential services, the following organizations may be able to help:
- Mississippi Ride: The Mississippi Department of Transportation's (MDOT) Mississippi Ride program offers free door-to-door transportation for people who cannot drive due to medical conditions.
- Transportation Assistance Program (TAP): This program provides transportation assistance based on need by providing bus tokens, cab vouchers, and vouchers for local taxi companies. TAP services are available statewide.
Finding Debt Relief in Mississippi
When you're in debt, it can be easy to feel like you're at the mercy of your creditors. But don't let them take advantage of your situation—there are plenty of legitimate options out there for people who want to be debt free and get their financial lives back on track.
If you have questions about your debt relief options, please ask for reputable help from TurboDebt, as we are one of the top-rated debt relief companies based in Mississippi. We'll provide you with a free consultation, legal advice, and a credit report to decide which debt relief enrollment is right for your situation.