Mississippi metro area ranks low in credit score

Understanding credit scores can be tricky for Mississippi residents, and many people do not take the time to analyze their credit reports. For some people, they may simply not feel that it is important to check the accuracy of their credit reports or scores. For others, however, they may suspect that the report contains unfavorable information or a low credit score and choose to avoid the negative reality. Knowing what is on a credit report can be important, however, especially for people considering filing for Chapter 13 bankruptcy.

A recent report released by TransUnion provides data on the average credit scores of metro areas. After averaging the risk for the collective population of a metro area, the study found that Jackson is rated third in terms of the lowest credit scores. Jackson's score was identified as 642, but this number is from the VantageScore, which has a low score of 501 and a high score of 999. A representative from a national debt-relief organization located in Mississippi stated that high levels of unemployment and low average income contribute to the low average credit score because it becomes difficult for Mississippi residents to pull themselves out of debt.

Struggling with severe financial challenges can be exhausting and very stressful. Especially if the financial challenges are due to low income, it can quickly become difficult to pay day-to-day bills without relying on credit. As a result, credit card debt can quickly snowball, furthering the debt problems and making debt relief seem completely elusive. Fortunately, there are ways that Mississippi residents can conquer their debt and start fresh. Chapter 13 bankruptcy can help people begin to correct their financial situations before problems worsen.

People who are gainfully employed but find themselves just short of what is needed to cover their bills may be the best candidates for Chapter 13. By filing for bankruptcy under Chapter 13, consumers get the opportunity to repay debts based on a three- to five-year repayment schedule. At the end of the time period, various debts-including credit card debt, medical bills, utility bills and some loans-are wiped away. While filing for bankruptcy can be a difficult decision, consulting with an experienced bankruptcy attorney can help people understand both the benefits and consequences so that they can get started toward a stronger financial future.

Source: ClarionLedger.com, "Credit scores in Jackson area among worse in nation," Christine Dugas, Feb. 8, 2013

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