Debt Consolidation in Mississippi
If your financial state is getting out of control it is time for you think about ways out. Although your situation may be difficult, there are solutions!
Mississippi (MS) provides a wide variety of debt relief programs to help you out of any of financial crisis. The foremost among them are Mississippi debt consolidation programs!
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How Debt Consolidation works
Debt consolidation (also known as credit consolidation) is a process where you pay back your debts by taking out a low interest loan. This helps in reducing high interest loans and credit cards, replacing them with one lower monthly payment. Debt consolidation also has a minimal effect on your credit score. It is the best and quickest fix for your mounting debt problems.
Debt consolidation works to change your financial situation before it becomes too late. If you feel finding the right loan is beyond you, you should seek help from a debt consolidation company.
Role of a debt consolidation company
If you are consolidating your debts with the help of a debt consolidation company, remember to check out its accreditation with the Better Business Bureau (BBB). This saves you from getting involved in a scam.
The company will first analyze your financial situation and suggest plans that can reduce your credit card debts in Mississippi as soon as possible. Thereafter, they'll contact your creditors and work with them to lower your interest and monthly payments.
Most good debt consolidation agencies also provide you with credit counseling services designed to help you stay out of debt.
The company also takes charge of distributing the loan money to your various creditors. And any harassments and threats from your creditors are handled by the company's debt consolidation attorneys. This simplifies your life and decreases the amount of time you spend in debt.
Most good debt consolidation agencies also provide you with credit counseling services in Mississippi that are designed to help you stay out of debt. Make sure you ask all the questions (that you've in mind) during the credit counseling session as this will help you decide whether or not to work with the agency. Observe the body language of the credit counselor. If he isn't interested in answering your questions or you aren't satisfied, then this agency is probably not right for you.
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Which debts can be consolidated in Mississippi
- Credit card debts.
- Personal loans.
- Medical expenses.
- Emergency travel allowances.
- Personal spending.
- Loss of employment.
- Tuition and student loans.
How to consolidate your debts in Mississippi
A debt consolidation loan is a low interest loan used to pay off multiple high interest debts. In Mississippi there are 2 types of consolidation loans:
- Secured loans: Secured loans require you to use collateral like your home or car to guarantee the loan. Because this gives the lender some way to ensure he/she will be repaid. Secured loans are usually available for more money at lower interest rates than unsecured loans.
- Unsecured loans: Unsecured loans do not require any collateral to guarantee the loan. Any unsecured loan will require you to have a certain credit score, because the lender is taking a greater risk.
Benefits of Debt Consolidation loans
- Lower interest rate.
- Single monthly payment.
- Consolidation loans are tax deductible.
- Freedom from creditor harassments.
- Improved credit score.
Things you should remember when choosing a consolidation company:
Here are a few things you need to consider when choosing debt consolidation companies in Mississippi.
- Check the accreditation of the company with the Better Business Bureau (BBB) and other state authorities.
- Conduct a market survey before you decide on any debt consolidation loan because interest rates vary. You should look for the lender that offers the lowest interest rate on your loan.
- Negotiate to get the best interest rate with the company. If you can get a lower interest rate, then you can save more. Check out Mississippi's credit card laws so you know your rights and obligations.
- Read the loan agreement before signing. There may be loopholes that could cause problems later. Ask questions about any terms and conditions you do not understand.
- Calculate your monthly payments and interest rates before you sign. Make sure that your monthly payment on the consolidation loan is less than your current monthly payments.
How does Debt Consolidation in Mississippi affect your Credit Score?
Enrolling in any debt relief program in Mississippi will affect your credit score. When you enroll for the program, your credit score drops. As you pay off your debts with your consolidation loan, your credit score not only recovers but improves!
With the experience of a debt consolidation company at your side, your credit rating will be better than ever within a few years!
Things to avoid while in a Consolidation Program in Mississippi
Check out the 5 things you must avoid when you're working with debt or credit consolidation companies in Mississippi.
- If you have multiple credit card accounts do not close them after you've repaid them. Closing accounts abruptly negatively impacts your credit report.
- Avoid taking out any new loans (other than a consolidation loan) as it will not give you any debt help.
- Stay away from any balance transfers which will affect your credit score negatively and increase your chances of staying in debt.
- Reduce the number of debtson your credit record while in a consolidation program. Multiple debts have a negative impact on your credit score.
- Try and maintain a balance between your expenses and income. If you spend beyond your means can lead to a severe financial crisis just as you get out of debt.
State Attorney General Phone Number: 601-359-4230, 228-386-4400; Toll Free: 1-800-281-4418; 1-877-667-5599
Public Service Commission Phone Number: (800) 356-6429, 601-961-5400