Mississippi Debt Consolidation

Debt Help in Mississippi

Mississippi residents dealing with overwhelming amounts of debt will find a variety of state and federal laws and programs that provide needed help. As you struggle with what to do about your debt load, look into these options.

Mississippi Credit Counseling and Debt Consolidation

The first thing to consider when facing more debt than you can handle is seeking Mississippi credit counseling services. The Department of Banking and Consumer Finance maintains a list of licensed debt management services, which includes credit counseling service providers. This list, found at http://www.dbcf.state.ms.us, is a good place to start when seeking to find a qualified credit counseling service. Just remember, having a license does not necessarily mean a company is the right fit for you or the most ethical credit counseling company.

A credit counseling service helps debtors by providing them with advice and education about budgeting and credit. It does not actually do anything with the debt. That is left up to the consumer, but a credit counselor gives insight and direction as to the best way to handle debt. Some will even provide accountability or set up payment plans to help the debtor automatically pay down debt.

Another option to consider, and one that your credit counselor may suggest, is a consolidation loan. Consolidation loans help by lumping all of your debt into one loan program. The goal is to find a loan with a lower interest rate than what you are already paying. If you lack discipline with your finances, do not enter into a consolidation loan without some level of accountability, like what you find with a credit counselor. Doing so would set you up for even greater financial struggles, as you will likely start using those credit cards again as soon as you empty them, creating an even larger debt load.

Mississippi Debt Relief Programs

Mississippi debt relief programs add to what a credit counselor offers. Whereas a credit counselor offers advice and support, a debt relief program may actually negotiate better terms and debt settlements on your behalf. Sadly, many companies working as “debt relief’ firms are unscrupulous, offering little help and high fees. To find a reputable company, start with the list from the Department of Banking and Consumer Finance. Always ask for information about fees before you sign up for a program.

Mississippi Debt Collection Laws

Mississippi does not have a state-specific set of laws surrounding debt collection practices. Rather, the state follows the practices outlined in the federal Fair Debt Collection Practices Act.

The FDCPA forbids debt collectors (not the creditors themselves) from certain behaviors. Some of these are:

• Calling repeatedly with the intent to annoy.
• Calling before 8:00 a.m. and after 9:00 p.m.
• Using profanity, threats, racial language, or obscene language when calling.
• Intentionally deceiving the debtor, such as by stating that the debtor will go to jail or be sued if they do not pay, unless this is, indeed, true.
• Call you at work if your employer tells them not to do so.
• Failing to identify themselves and the company they work for.
• Failing to provide proof of the debt if asked.

Debt collectors are allowed to call your friends, family, neighbors, and acquaintances if they are looking for your contact information. However, the law limits them, stating that they cannot call third party individuals repeatedly. Also, they cannot disclose that they are trying to collect a debt when they do call. If they send something in the mail to your home, it has to be nondescript, and cannot have any markings that indicate the intent of the letter. Likewise, they cannot send postcards, which would be visible to others.

If at any point you wish to stop the collections calls, faxes, letters, and visits, you can do so. All you need to do is write to the collection agency and ask them to stop, claiming your rights under the FDCPA. Remember to send the letter via certified mail with return receipt, because this is the only way to prove that the collections agency did not comply if you need to file a complaint. If you request the collection calls to stop, you still owe the money if the debt is valid.

In addition to the FDCPA laws, the state of Mississippi has a few laws that pertain to your creditors. If your creditors are going to sue you for the amount you owe, they must do so within a set period of time, known as the statute of limitations. The statute of limitations for the main forms of debt is three years. The time starts on the day after your account entered “past due” status. The state also limits the percent a debt collector can charge, and that is eight percent. If your creditors try to garnish your wages, 100 percent of your wages are protected for the first 30 days, followed by 75 percent of your weekly earnings afterwards.

Mississippi Mortgage Assistance

The Mississippi Home Corporation offers a variety of programs to assist homebuyers. One, the Down Payment Assistance Program, is a second mortgage at a fixed 7 percent rate that goes toward down payment and closing costs. The maximum amount available through this program is three percent of the loan amount, and the property’s sale price must be at or below $198,000. Income limits and credit score requirements do apply to this program.

The Mississippi Home Corporation also runs the Foreclosure Mitigation Counseling program. This program works with Neighborworks America to help those facing foreclosure. To get help call 601-718-INFO. The primary source of help is through credit counseling.

If you have a low credit score but still want to get a home, consider shopping for a loan through the Federal Housing Administration (FHA). The FHA partners with lenders to provide government-backed mortgages that focus more on income levels and employment history than creditworthiness. This helps those with tarnished credit scores get a home. Contact your preferred lender and ask if they work with the FHA loan program for more information.

Mississippi Debt Assistance Programs

Mississippi offers no other state-based debt assistance programs. Some state programs can help free income for those with heavy debt loads to use to pay down that debt.