Survey findings from the National Retail Federation report that Americans spent nearly $1,000 dollars on average for holiday items this month. And according to Debt Hammer, more than 66 percent plan to use “buy now pay later” options. Ryder Taff is a financial advisor with New Perspectives. He says this kind of debt can create several challenges for Mississippians if left unpaid.
“The store, or the credit card company after some time, they may stop trying to collect it from you. They may give you some final notice. They may sell it to a debt collection agency, and the reputation of those debt collection agencies, those are not good. They will try to hound you for the money,” says Taff.
Taff says there are several things residents can do if they have a large amount of debt. He says the priority should be to pay off high-interest credit cards. But if the amount is too high he says there are other options available.
Taff says “the first place I would turn is simply the servicer of that debt. Your credit card issuer, the bank who issued your debt. They don’t want you to default, so in most cases they are going to be willing to work with you. Also any time there is federal assistance you bank will often know about that, and often is willing to help work with you to make sure you qualify for any assistance.”
According to Experian, the average Mississippian owes more than 58 thousand dollars in consumer debt, which includes credit cards, car loans and medical bills. For those with student loan debt, President Biden has extended a pause on repayments until May.
