Arizona Debt Relief: Debt Consolidation & Settlement (2024)

Get The Help You Need to Get Rid of Debt in Arizona

Arizona has long been associated with the Grand Canyon, one of the Seven Natural Wonders of the World. The state is known for its beautiful parks and monuments, breathtaking scenery, and premier spas—in fact, Arizona is home to three of the world’s best destination spas.

Aside from numerous options for hiking, bicycling, and relaxing, the state also boasts several busy cities, including Phoenix and Tucson. You’ll find people from all walks of life who are proud to call Arizona their home.

Many people are attracted to Arizona’s warm weather. The state is known for its nearly year-round sun and low humidity. While temperatures vary across the state, most regions offer moderate to hot temperatures and little precipitation.

Arizona has a lot to offer its residents, but it’s not the cheapest place to live. Individuals and families often struggle with debt, as Arizona debt statistics indicate. Rising housing costs, inflation, and increasing gas prices haven’t helped matters. Like other states around the country, those who live in Arizona often need help in the form of debt relief options.

Do Residents of Arizona Have a Lot of Debt?

The average household in Phoenix, Arizona, carries $10,502 in household debt. In contrast, the median household debt across the nation was $8,425 in the first quarter of 2022. Inflation, housing costs, and gas prices are likely to drive debt even higher in the following months.

In addition to rising debt, Arizona has a slightly higher cost of living than other states. It currently ranks as the 18th most expensive state to live in, and the cost of living index is 103.2. Housing in Arizona is more costly than in other states, with an index of 107.7.

Despite the higher cost of living, personal income is lower in Arizona than the national average. According to the Bureau of Labor Statistics, average wages in Arizona were $55,170, compared with the national average of $58,260.

All of these factors combine to make it hard to get out of debt in Arizona. Use the interactive calculator here to see how long it will take you to pay off your credit cards, student loans, and medical debt. The calculator also indicates how much interest you will pay to your lenders.

What Causes Credit Card Debt?

Arizona residents often find it hard to make ends meet at the end of the month. When people struggle to pay bills and necessities on their income, it is common to use their credit cards to finance their expenses. This is how in the end they owe consumer debt which they cannot manage to repay, and in the end, they may need to face debt collectors.

Incomes and expenses don’t match

With the increased cost of living, many households struggle to pay for their necessities. Most people in Arizona don’t use their credit cards for luxurious living, clothes shopping, or fine dining. They usually use their credit cards to pay for necessities like gas and groceries when they run out of money at the end of the month. Inflation has eaten away at people’s income and salaries are not following the inflation rate.

Once they get started using their credit card balance this way, it is not easy to stop because of the minimum payments trap.

Credit card minimum payments lead to a debt spiral

Banks and credit card companies make money from interest. Any loan they offer carries interest. Credit cards have some of the highest interest rates, usually around 18% to 20%.

Minimum monthly payments are automatically calculated by the bank; they increase when your balance increases but they only comprise interest. When you only pay the minimum monthly payment on your credit card, you might think that you are paying off part of the balance when in fact you are only recycling your debt. At this rate, it will take many months if not years to pay down debt from your credit card, and that is if you stop using it.

Unpredictable expenses

No matter how well-prepared you are for life, there are things that are unpredictable. Most financial advisors suggest households have an emergency fund, but many Arizona residents find it hard to put money aside for unexpected expenses.

Without a savings account with an emergency fund, a medical or family emergency, a car repair or an urgent home repair can make a significant dent in your finances. Most people will pay for these with their credit cards or with a personal loan. They then have to repay their debt.

Overcome Credit Card Debt with the Help of Americor

When your financial situation keeps you awake at night, it’s good to know that you have Americor in Arizona to help you with debt relief. If you want to be debt-free, contact us to find out more information on the credit repair solutions we provide.

Credit counseling

If you live in Arizona and need help and advice with your finances, credit counseling is a good option to get a clear idea of your financial situation. How much do you earn? What are your monthly expenses? How can you lower your expenses in an organized way?

Credit counseling can provide you with an overview of your lifestyle and establish good spending patterns so that you have the financial means to repay your debt.

A credit counselor can suggest you get a better-paying job, or show you how you might be able to reduce your expenses by purchasing in bulk or by bundling services together for better prices.

Debt consolidation loan

A debt consolidation specialist can help you obtain a debt consolidation loan.

When you consolidate your debt, in practice you merge two or more existing unsecured debts into one loan. If you have credit card debts, medical debts, private student loans, and personal loans you can consolidate them into one debt consolidation loan. The consolidation loan helps you repay all your existing debts and you then repay a single loan, once a month, instead of making multiple loan and credit card payments.

Consolidation loans come with fixed interest rates which depend on your credit score and the amount of money you borrow. If you have a good credit score, you can achieve a better interest rate for your consolidation loan, usually lower than for credit cards, which means you pay less for your debt. As a bonus, debt consolidation loans have a fixed payment throughout the repayment period, which is easy to keep track of.

With a lower interest rate, a debt consolidation loan will simplify your life and make it easy to repay your debt and find debt relief.

Debt settlement

Debt settlement is a negotiation where you ask for part of your debt to be reduced because you can’t realistically pay for all of it. Debt settlement companies like Americor can help you with this process. Americor’s debt specialists can negotiate on your behalf to reach an agreement with your creditors to reduce your overall debt by up to 50%. This is an important reduction of your debt burden as you are only asked to repay the remaining 50%.

Debt settlement is a valuable debt relief solution if your debts are crippling you and there is no financial space to repay all of them. Debt settlement will affect your credit score and remain on your credit report for a while, but as time passes and you don’t create new debts, your credit score can soon recover.

Debt Management Programs

Debt management is one of the options available if you are looking for debt relief. It involves a Debt Management Plan (DMP), whereby you negotiate with your creditors more friendly repayment terms. With a debt management program, you show how you plan on repaying your debts with an extended repayment period, lower interest rates, and perhaps the waiving of late fees.

Bankruptcy

Sometimes things become unbearable for you and your family, leaving you no other option but to declare bankruptcy. You can file for bankruptcy with the help of a lawyer who will present your case to the court. Your lawyer will show your debt is unsustainable for your level of income.

Filing for bankruptcy means you don’t repay your debts but you might be asked to surrender part of your assets (car, home, and other valuables).

Bankruptcy stays on your credit record for 10 years, which makes it very difficult to obtain new lines of credit during that time. Given that you are provided a fresh start, though, it may be better than the alternative of drowning in debt.

Americor for Arizona Debt Relief

Americor in Arizona is a professional debt relief company run by debt specialists. We are members of the Receivables Management Association, the American Fair Credit Council, and the International Association of Professional Debt Administrators.

We are also certified by the Better Business Bureau for the quality of debt solutions we provide and we stand by our reputation as a reliable debt relief company in the United States and Arizona.

Time for Arizona Debt Help

The good news is that you don’t have to suffer from heavy debt loads forever. There are smart ways to put your finances back on track and many solutions available to help you pay off your debt. Americor offers several Arizona debt relief programs that can get you on the road to financial health. To explore some of your options and find more information and resources, click on the links below:

• Debt consolidation loans
• Debt settlement
• Bankruptcy