Arizona Debt Relief: Debt Settlement and Consolidation

Arizona is the 6th fastest-growing state in America. Many people move to Arizona because of the weather and amazing hiking and views. However, with these views, come many challenges. Arizona has the nation’s 8th highest poverty rate and 8th lowest personal income.

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With these facts comes quite a bit of debt. Many Arizona residents live off credit cards and have staggering debt that can easily become unmanageable with a low income. The average debt for 3.8 million adults in 2019 in Arizona was $54,290 according to the New York Federal Reserve.

Debt Relief Options

Debt Settlement

Debt settlement will negatively affect your credit for several years, so it is something to think about before moving forward. You will consult with a settlement company who will then negotiate with your creditors. They will reach a settlement amount that is usually significantly less than what you owe on your credit cards.

The company will then put you on a savings plan that is usually around 3-5 years. You will then use the savings to pay the settlement after your contract ends. During the time you are saving, you will not pay your creditors. This is part of the reason why it affects your credit score so much.

Debt Consolidation

This could be the best option if you have a high credit score and want to take out a personal loan to cover the existing debt. Ideally, you will get a loan that has a lower interest rate than your current credit cards.

You will still need to make the monthly payment on your credit card, but it will be lower than what you pay on your credit cards.

Debt Management

Debt management will require discipline and budgeting. If you have small amounts of debt or need help getting finances together, debt management can show you where you are overspending. You can then save this money and use it to make high payments on your credit cards.

Consumer Debt Counselors

Free credit counseling and consumer debt counseling can help you determine which debt relief plan is best for you. They will also be able to counsel you on what interest rates could benefit you and help you find a way to better pay off your debt faster and more efficiently.

Consumer Debt in Arizona

Arizona has median debt in relation to other states meaning that it is not on the high end or the low end. With high mortgage rates and a higher-than-normal cost of living though, some people find it hard to make ends meet in Arizona.

Consumer debt has become more of an issue lately especially with the COVID pandemic.

Credit Card Debt in Arizona

In 2018, Arizona had the 30th highest average card debt on credit cards at $7,100. Per capita, the state has $5,480 in credit card debt while the national average is $2,780. You can see that Arizona residents have much higher credit card debt than the average American.

Statute Of Limitations for Arizona Credit Card Debt

The statute of limitations in Arizona is 6 years for credit card debt. It will start when you stop making payments on the credit card. If a credit card company doesn’t file a lawsuit within 6 years, they will not be able to legally take any action against you.

Mortgage Debt in Arizona

In 2019, the mortgage debt in Arizona was the 16th highest in the nation at $202,148. Per capita, it is $40,000 compared to the nationwide average of $36,730. With the housing market growing and construction being expensive, Arizona residents go into high mortgage debt trying to buy homes in the state. This is especially true in larger cities.

Student Loan Debt in Arizona

People who live in Arizona who are college graduates owe an average of $38,920. That is the 28th in the nation. Per capita, Americans owe $5,730 in student loan debt while in Arizona it is $5,410. Student loan debt can be as high as $9,073 when Arizona residents are between the ages of 18-29. With adequate payments, this begins to drop over time.

Auto Debt

Auto debt tends to peak around age 40-49. Auto loan debt per capita in Arizona is $5,480 and nationwide it is $5,000. This is higher than many other states, but still in the middle range similar to most Arizona debt statistics. As people age, they tend to pay off their cars before retirement and don’t purchase new vehicles as they grow older.

FAQ's About Arizona Debt Relief:

How does a debt relief program affect your credit?

Every debt relief program will affect your credit differently. Debt settlement is usually seen as the last option because it hurts your credit the most. However, it may be necessary if your debt is overwhelming.

Debt consolidation involves taking a loan that will always hurt your credit score at the beginning. Making consistent payments on it though will improve your score over time. Debt management is the best if you have a stable income and don’t want your credit score affected too much.

Is there really a debt relief program for me?

No matter your debt amount or situation, there is a relief program that will work for you. It’s important that you find a company and counselor that will work with you to find the best one. Debt management is ideal if you have low amounts of debt and a steady income as it will affect your credit the least.

Debt settlement is better in situations where people may be facing crippling debt. No matter what you choose, make sure you can make the payments on time and try to get a very low-interest rate.

Get Debt Relief in Arizona Today

TurboDebt is a company that can help you find the best debt relief option by using effective strategies and low-cost solutions. They understand that debt is not one size fits all and they are committed to finding you a solution that is best for you.

They can help you with strategic planning, advisement, and consulting.

How Much Do You Owe?

Select your debt amount:

How Much Do You Owe?

Select your debt amount:

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