According to an article in Health Affairs, medical debt in collections peaks when individuals are in their late 20s. This is because younger people tend to make less money than those in their 50s or 60s. Furthermore, younger people are more likely to not have insurance. Even if a person has insurance, the policy likely comes with a deductible that an individual could have trouble paying. However, there are ways that those dealing with such debt in Mississippi and throughout the country can better manage it.
What to avoid before filing for Chapter 7
Bankruptcy is a scary reality for many people living in Mississippi. Fortunately, the rate of people filing for bankruptcy appears to decrease around the country. In particular, many older Americans over the age 65 no longer have to seek out bankruptcy.
Chapter 13 bankruptcy and payment plans
A Mississippi debtor who successfully files for Chapter 13 bankruptcy will go on a payment plan that lasts for three or five years. Payments are made to a trustee, and the trustee then distributes the payments to creditors.
Income plays a role in determining credit card debt burden
To properly assess the impact of credit card debt in Mississippi, it's important to compare debt levels with income levels. There is often a disparity in the American South. According to a study by CreditCards.com, however, New Mexico is the state most burdened by credit card debt. Massachusetts residents were the least burdened by such debt. The median income in New Mexico is $46,744 while the median income in Massachusetts was $77,385.
What can you do if you owe taxes?
Often, difficult financial situations seem to snowball. Various types of debt accumulate and become increasingly harder to get rid of.
Consumer debt up significantly in the past five years
Mississippi residents and others are on pace to amass $4 trillion in collective consumer debt by the conclusion of 2018. That would be an increase of $1 trillion over the past five years alone. The increase is attributed to both revolving debts and others like student and auto loans that have a fixed end date. Revolving debt has increased 22 percent since 2013 while student and auto loan debt has increased by 30 percent in the same time period.
The ins and outs of filing for bankruptcy protection again
Anyone in Mississippi or any other state must wait for eight years before filing for Chapter 7 bankruptcy again. This means it's not possible to file for this same type of bankruptcy, which is popular because it wipes out most debt within months of the initial filing and approval, until the eight year period is up. Technically, there aren't limits on how many bankruptcy cases someone can file, but there are limitations on when this type of protection can be sought after a previous bankruptcy was successfully filed and completed.
