Research from CompareCards.com found that credit card debt may be a bigger problem than student loans for many millennials in Mississippi and around the country. Among those who participated in the study, 67% reported having credit card debt while only 36% had student loan debt. It found that among individuals in this age group who had credit cards, only 13% had no debt. Furthermore, about a quarter of respondents said that they would die in debt regardless of how old they currently were.
Among those who made such a claim, 16% had an annual household income of $100,000 or more. Women were more likely than men to say that they would likely pass away still owing money to creditors. However, the average millennial respondent said that he or she would be out of debt by age 49. Parents who had children under the age of 18 were more likely to have credit card debt compared to those who had no children at all.
Across all groups, 70% of respondents who owed money to a credit card company had at least one other debt. Financial professionals recommend that those who are in debt take any action necessary to pay it down. In many cases, putting even a few extra dollars a month toward a debt can make it more manageable in the long run.
Individuals who are experiencing financial difficulties related to credit card or other types of debt may want to consider bankruptcy. Filing for bankruptcy may entitle a person to an automatic stay of creditor contact. This means that a debtor won’t receive phone calls or letters related to an outstanding balance. Other benefits of bankruptcy could include extra leverage to negotiate new home or auto loan terms or the ability to discharge certain unsecured debts quickly.
Many women in Mississippi are struggling with costly credit card debt, even more than men in the state. Of course, people in general have accumulated significant debt associated with revolving consumer credit. According to one study, total credit card debt has hit its second-highest point following the financial crisis of 2008. In one quarter in 2018 alone, people accumulated another $30 billion in consumer debt. Still, women have shown more anxiety about their credit card balances than men. One study said that over one-fourth of women participants were not confident that they could pay off their cards compared to 14% of men.
One factor is the generally lower incomes that women have. Women have 80% of the median annual income of men, which means that women may have greater struggles in getting out of credit card debt. While the median salary for a woman is $41,554, the median for a man is $51,640. In addition, 20% of men said that they had only paid their credit card balances in full once or never in the last six months. Over 30% of women said the same, meaning that they are accumulating larger amounts of interest charges as a result.
Other experts drew attention to the number of single mothers providing for their children. Single moms may be more likely to turn to credit cards to cover expenses for their children and may also struggle to make up the money to pay off their bills. They may also be less able to take on additional work to make more money due to the cost of childcare.
People of all backgrounds are struggling with creditor calls, costly fees and other aspects of insurmountable credit card debt. They may wish to consult with an attorney about their options for debt relief, including credit counseling, debt consolidation or personal bankruptcy.
Americans owe a total of $1.4 trillion in student loan debt as of the first quarter of 2019. That figure was provided by Experian, and it represents a 116% increase in student loan debt over the past 10 years. While this has caused a financial burden for many young people, it is not the only form of debt that they have.
Research has indicated that individuals between the ages of 23 and 34 have more credit card debt than student loan debt. Collectively, Americans repaid $38.2 billion in credit card debt during the first three months of 2019. However, WalletHub says that individuals will put another $70 billion on credit cards during 2019 alone. Currently, Americans owe over $1 trillion to credit card companies. Financial professionals point to many reasons why individuals rely so heavily on credit cards and are struggling to repay their balances.
Monetary policy and a relatively weak dollar relative to inflation are popular theories as to why credit card debt is increasing. Low interest rates and more money in circulation generally results in prices going up and the value of the dollar staying flat. However, some believe that if Americans were better educated about the financial consequences of credit cards, they would be able to more effectively manage their debt.
Individuals who are facing financial challenges related to credit card or other types of debt may have ways to overcome them. One option may be to file for Chapter 7 bankruptcy. Doing so may make it possible to have certain unsecured debts discharged without making any payments. Other benefits of bankruptcy may include putting at least a temporary stop to creditor contact.
Most people in Mississippi choose hospitals within their insurance networks to avoid higher medical bills. Despite their best efforts, they still might end up paying surprise out-of-network fees. A nationwide study from the Health Care Cost Institute has revealed that patients using in-network hospitals frequently get unexpected charges from out-of-network physicians and laboratories.
Health care consumers have no way to protect themselves from out-of-network services even when they seek care at in-network facilities. Even if patients make inquiries in advance of an admission, the hospital likely has no ability to give a clear answer about the network status of all service providers involved in the care. The increasing complication of insurance contracts and tiered networks creates an opaque environment where consumers cannot have certainty about coverage.
The study found that anesthesiologists were a large source of out-of-network charges from medical professionals. This medical specialty represented 16.5 percent of surprise bills. Independent laboratories, however, took the top spot by producing 22.1 percent of all surprise medical bills.
A medical crisis can inflict financial hardship through both loss of income and high medical bills. A person might fall behind on utility bills and house payments while trying to pay hospital bills. Under these circumstances, debts can pile up quickly. At this point, a legal consultation regarding debt relief could reveal strategies for coping with the problem. An attorney might recommend actions like negotiating a manageable repayment plan. If a court needs to be involved, then an attorney could prepare legal paperwork and strive to protect the client from creditors.
Many working people living in Mississippi struggle with their finances. Living paycheck to paycheck, they find it difficult to get ahead of crippling debt. If an emergency strikes, such as a family illness or job loss, they may have difficulty affording food, utilities and shelter.
Some employers are aware of the situation and are working to offer financial planning benefits to their workers. These companies have contracted with third-party companies to provide benefits such as financial counseling, student loan repayment options, emergency loans and medical bill advocacy.
In many cases, these services offer real help. If financial counselors determine that a loan is a good idea, they can provide education to employees about the risks and benefits of borrowing. In some cases, these programs also offer paycheck deduction options that can help ensure on-time repayment and lower the risk of credit damage and late repayments.
However, there are limits to how effective financial assistance programs can be. While they may represent a solid alternative to bankruptcy, there are situations in which a person’s debt is simply out of control. Unless the employee receives a significant wage increase or comes into a large amount of cash, he or she is unlikely to ever complete paying off the debt.
In such cases, bankruptcy might be a good option. Both Chapter 7 and Chapter 13 offer ways for financially insolvent individuals to resolve their debts and move forward in reestablishing their finances. Someone considering bankruptcy might benefit from consulting with an experienced attorney who could explain various debt relief options.
