People paying off debts in Mississippi often stop using credit cards and switch to making purchases with cash. Although this is an appropriate way to tackle debt, careful use of credit cards does help people maintain their credit ratings. Credit cards that offer reward points provide consumers with multiple advantages when paid in full every month.
An active credit card account that’s in good standing could help a person secure a low interest rate when financing a car or home. This benefit emerges after cultivating an excellent credit history on the same account over the long term.
To build a good credit history, a person should take care to not use over 30 percent of the available credit at any time. The full balance also needs to be paid on time every month. The development of a budget could help someone prevent overspending that would interfere with paying off his or her bill every month. Once a budget has been mastered, a person could then route regular expenses through the credit account in order to earn rewards. This regular monthly activity would also promote a good credit score because credit bureaus calculate scores based on the use of credit as well as the length of credit history.
A job loss or medical crisis, however, could undermine the budget of even a very careful person with good credit history. When bills start to go unpaid, interest rates and penalties add up quickly. If a resolution to financial challenges does not appear possible in the future, a person could consider tackling the problem head-on with a bankruptcy filing. An attorney could supply specific information to a person about qualifications and protection from creditors. A lawyer could also prepare the lengthy financial disclosures for the court to pursue the discharge of debts.
Part of a credit card agreement is that the Mississippi cardholder will pay back charges, plus fees and interest. In some cases, though, credit card companies have incentives to lower the amount outstanding, or they realize it won’t be worth it to pursue the cardholder with collections efforts. For people who are going through serious financial hardship, it may seem impossible to get out. If it is approached correctly, debt settlement can be a way to satisfy these types of obligations.
Some debt settlement companies give poor advice at times, though, like advising clients not to communicate, pay or work with creditors. This can be a dangerous tactic, and most cardholders will get more out of calling their credit card companies directly or asking an attorney to communicate with creditors on their behalf.
Debt settlement can harm a person’s credit score, because the credit reporting agencies are notified that the obligation has been settled for less than the amount owed. The cardholder’s credit score suffers for up to seven years before the note comes off. In some cases, the Internal Revenue Service may demand that taxes are paid on the amount of credit card debt forgiven. If the amount forgiven is at least $600, the taxpayer will usually be required to pay taxes. Tax liability may be reduced, though, if the debtor is insolvent.
An attorney might be able to help people in Mississippi who are struggling to pay down debts. Debt settlement may be an option for some. Debt restructuring, consolidation or filing for bankruptcy may make sense for others. An attorney might be able to provide advice regarding the different debt reduction or elimination options available.
Your parents worked hard all their lives to save for a retirement that would ensure their comfort in their golden years, as well as to build a nice nest egg for their children and grandchildren to enjoy after they are gone. It would break your heart to discover they were victims of scammers who are determined to separate them from the assets they spent a lifetime building. Unfortunately for many residents of Mississippi and elsewhere, there are many financial scams that target the elderly and the vulnerable.
According to the National Adult Protective Services Association, about one out of every 20 senior citizens in the U.S. is a victim of financial scams or of people they know and trust. Your parents may have been intelligent and financially savvy throughout their lives, but sophisticated cons and declining mental acuity can make them easier targets in their senior years. The following scams are common against the elderly and the mentally vulnerable:
Sadly, many of these cons can drain your parents’ savings and retirement accounts before you can intervene. If you worry that your parents may become targets of financial scammers or dishonest relatives, you may wish to explore legal options.
