Mississippi no longer leading in charged-off credit card debt

Mississippians who are considering getting a credit card as well as those who already have a credit card should realize that there are several different effects that credit cards can have on their financial situation. In particular, making too many charges and failing to pay off credit card balances can lead to significant credit card debt.

A recent study examined the different ways that an individual and a credit card company can respond to credit card debt as well as some of the leading states where individuals are facing financial challenges with their credit cards.

When debt accumulates, so does interest. The high interest rates on credit cards can make it even more difficult for an individual to pay off the balance. And in fact, the balance that increases as a result of high interest can lead a credit cardholder to default on payments. When this happens, a credit card company can respond in a number of ways. In particular, a company can declare a debt to be irretrievable and no longer attempt to collect it. This procedure is known as charging off a debt.

When this occurs, it can have negative implications on a Mississippian's financial status. Fortunately, the study also reveals that Mississippi is no longer a leading state in which people have charged-off credit card debts. It has dropped out of the top ten states where credit card debts are going unpaid.

This finding demonstrates a positive shift with credit card debt in Mississippi. In line with this shift, credit cardholders in Mississippi should appreciate that there are a number of ways for them to combat their accumulated debt. For example, Mississippians should consider bankruptcy. Bankruptcy can either help an individual discharge a debt all together or set up a payment plan to make manageable payments to pay down debt.

Sometimes the relationship between credit card debt and bankruptcy is not obvious. Just as the study shows, there are several different considerations with credit cards and not all of them may be obvious. Consulting with an attorney early on can bring all of these different implications and options to the forefront of the decision making process.

Source: wallstcheatsheet.com, "10 States Where Credit Card Debts Are Going Unpaid," Kurtis Droge, Oct. 17, 2013

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