Debt Relief Arizona

In the early days of the state, Arizona’s economy relied on the five C’s: Copper, cotton, cattle, climate and citrus. Today Arizona produces nearly two-thirds of all U.S. copper, while also being a top five leading cotton state. And with over three-hundred days of sunshine and the Grand Canyon, Arizona still pulls in tourists and snowbirds. But much like the rest of the U.S., Arizona was heavily affected by the pandemic. Arizona ranked 22nd in 2020 for an average credit card balance of $5,157.

“Phoenix has seen a rapid rise in demand for housing while facing property shortages, which is causing an increase in pricing,” says Gary Herman, President of Consolidated Credit. “On top of already facing a higher-than-average unemployment rate, minimizing or eliminating debt has become an ever-present cause for concern for Arizona residents.”

Consolidated Credit Helps Arizona Residents Reduce Their Total Credit Card Payments by Up to 50%

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Consumer Debt in Arizona

This chart shows a breakdown of average consumer debt in Arizona based on the latest Household Debt report from the Federal Reserve.

In 2020, 12,900 Arizonians filed for bankruptcy compared to the previous year’s filing total of 16,933.

Income and employment in Arizona

Since Arizona is a right-to-work state. That means should employees decided to unionize, individuals are by law guaranteed the right to decline union membership and avoid paying dues. If someone is already a member and wants to resign from their union, they would not be fired as a result of the resignation.

Additionally, Arizona is an employment-at-will state. Therefore, think of employment as a contract that can be severed at any time for any reason. As such, employees and employers do not guarantee they will uphold employment and can terminate their relationship as they wish.

These two factors give Arizona workers flexibility and opportunity, but also less job and salary security. So, it’s important that workers be proactive about securing raises and protections in case they are let go.

Arizona held a high unemployment rate of 6.8 percent in 2020, and by July 2021 the percentage dropped minutely to a 6.6 percent (1.2 percent above national rate for the month). Though Arizona ties for unemployment with three other states (Alaska, Louisiana and Pennsylvania), it currently sits in 39th place when it comes to unemployment rates.

Apply for unemployment benefits in Arizona »

Banking and taxes in Arizona

Arizona has an income tax rate that ranges between 2.59-4.5% and a state sales tax of 5.6%. However, with local taxes, sales tax can range anywhere between 5.6-11.2%  depending on the city. For example, Winslow, Holbrook, and Pinetop-Lakeside are tied for second place with a 9.43% sales tax rate, while Kearney comes in at first with 11.2%.

Banking remains fairly common as the percentage of residents without a checking or savings account is a meager 4%.

Arizona housing market

Phoenix, Tucson and Scottsdale remain the most sought-after cities in Arizona. Unexpectedly, the metropolitan Phoenix area is experiencing an increasing demand in housing while struggling to meet expectations with a low inventory of housing. Because of high demand, Phoenix has seen a 29.5% jump in housing prices since July 2020, with homes selling for a median price of $395,000. Conversely, 2,421 homes were sold in 2021 compared to last year’s 2,715 (a 294 drop in homes sold).

Arizona offers a homestead exemption that has recently been increased from $150,000 to $250,000 effective January 2022.

  • 4% of Arizonians are homeowners
  • Median mortgage payment: $1,434
  • Median rent payment: $1,052

If and when you are finding it challenging making rental payments, refer to Arizona’s emergency rental assistance program for support. For those seeking mortgage relief, Arizona offers a lending hand through their “Save Our Home” program.

Retirement in Arizona

Ironically Arizona’s motto “Ditas Deus” meaning “God enriches” is seemingly code for having to move to Mexico in order to enrich one’s life post-retirement. The average Arizonian has $407,029 saved for retirement. Though this may seem like a large sum of money, the average Arizonian needs to have saved $1,000,000 in order to continue living comfortably in retirement. Thus, the average savings falls over halfway short of the necessary amount for a comfortable retired life.

Although Arizona has warm climate, it’s increasing cost of living in metropolitan areas often leads to migration. As a result, Arizonians may consider moving to states like Georgia due to their affordability. And for the 21% of retirees relying on at least 90% of their income, a low cost of living is the biggest draw.

Average Arizona insurance premiums

Like most states across the U.S., Arizona operates under a fault-based system when it comes to car accidents. For this reason, along with an average of $1,417 yearly for auto insurance premiums, it is important for injury and property damage victims to have proof of liability in order to be compensated for their losses.

Although average annual home insurance premiums are fairly reasonable at $1,283, when it comes to average health insurance premiums, expect to fork out no less than $5,877 annually.

Helpful resources for Arizonians facing hardship

Food Insecurity

City/Region Food Bank Phone Number Address
Mesa United Food Bank 480-926-4897 245 South Nina Drive, Mesa, AZ 85210
Phoenix St. Mary’s Food Bank 602-242-3663 2831 N. 31st Avenue, Phoenix, AZ 85009
Tucson Community Food Bank of Southern Arizona 520-622-0525 3003 South Country Club Road, Tucson, AZ 85713
Yuma Yuma Community Food Bank 928-343-1243 2404 E 24th St. Ste. A, Yuma, AZ 85365

Veterans

As of 2019, Arizona was home to 488,061 Veterans. These resources are available to help Veterans that are facing unemployment, homelessness, and other hardships.

Arizona Department of Veterans’ Services | For Arizona Veterans and those who care for them (az.gov)

Facilities in Arizona – Locations (va.gov)

Unemployment Insurance Benefits | Arizona Department of Economic Security (az.gov)

Helpful employment resources for Veterans:

How Consolidated Credit helps Arizona residents find debt relief

Consolidated Credit has provided free credit counseling services to 5,037 credit users in the state of Arizona in 2020. Of those, 311 went on to consolidate their debt with our help through a debt management program (the average amount of debt enrolled was $12,798). Those who did not enroll received a free debt analysis, complementary budget evaluation, and were directed to the right solutions for their respective situations.

Relief options to consider if you’re in debt in Arizona

If you have good credit and need to pay off credit card debt and other non-secured debts, a debt consolidation loan is an excellent option for you. By having good credit, you’ll get a low-interest rate for a loan that refinances all of your debt with one monthly payment. This will help you get out of debt faster, and you may wind up paying less each month. This is an excellent solution for Arizona residents with high debt and a good credit score.

Arizonian homeowners may qualify for a home equity loan or a home equity loan of credit, sometimes called a (HELOC). These types of loans use the equity in your home. Due to rapid home value increases, many residents have equity in their homes. The loan allows you to borrow against the equity in your home and pay off credit cards and other debt. This is not a step to take lightly because you could lose your home in foreclosure if you can’t make the payments. If you are considering borrowing against your home, call 1-800-435-2261 to speak with a HUD-certified housing counselor to make sure this is a safe option for you.

Consolidated Credit helps Arizona residents with counseling programs that identify the best way to get out of debt after considering their situations. Arizona residents can get a confidential debt and budget evaluation from a certified credit counselor. Afterward, the counselor will go over the available options and which course of action best meets a person’s needs and goals.

In Arizona, as in other states, it’s best to avoid bankruptcy. If you can afford to repay all that you owe to avoid credit damage but can’t do it on your own, a debt management program can help. You enroll through a credit counseling agency. The agency will work with your creditors to reduce or eliminate interest and work out a payment schedule. Qualifying Arizonians can get out of debt in 36-60 payments, on average.

Another option for Arizona residents is debt settlement. With debt settlement, you settle your debt independently or with the help of a debt settlement company. In this program, you agree to pay your creditors a portion of what is owed. This will damage your credit rating because you are not paying on the terms you first agreed to. Late payments, which are often part of this program, will hurt your credit rating for seven years. Even with those negatives, this can be an excellent program for Arizona residents with overwhelming debt. It can help you avoid bankruptcy.

If you’re curious how we can help you, below, you will find a few case studies from clients that we’ve helped in Arizona. If you’re facing challenges with debt, call us at 1-888-294-3130 to receive a free debt and budget evaluation from a certified credit counselor.

Michelle from Chandler, AZ

The customer service agents are SOOO helpful and professional. Thanks so much for all your help!

Where she started:

  • Total unsecured debt: $25,685.00
  • Estimated interest charges: $14,652.28
  • Time to payoff: 12 years, 7 months
  • Total monthly payments: $1,027.40

After DMP enrollment:

  • Average negotiated interest rate: 6.83%
  • Total interest charges: $2,805.79
  • Time to payoff: 3 years, 4 months
  • Total monthly payment: $651.00
Time Saved:
9 years, 3 months
Monthly Savings:
$376.40
Interest Saved:
$11,846.49
Patricia from Tuscon, AZ

Everyone has been understanding, compassionate, professional, accommodating… just amazingly helpful.

Where she started:

  • Total unsecured debt: $21,019.00
  • Estimated interest charges: $11,599.74
  • Time to payoff: 11 years, 2 months
  • Total monthly payments: $840.76

After DMP enrollment:

  • Average negotiated interest rate: 5.00%
  • Total interest charges: $2,510.55
  • Time to payoff: 3 years, 6 months
  • Total monthly payment: $513.00
Time Saved:
7 years, 8 months
Monthly Savings:
$327.76
Interest Saved:
$9,089.19
Teresita from San Luis, AZ

After a couple of weeks the calls from my creditors stopped. I have been in peace for the last two years thanks to this. I recommend it 100%.

Where she started:

  • Total unsecured debt: $14,216.00
  • Estimated interest charges: $7,644.24
  • Time to payoff: 11 years
  • Total monthly payments: $361.92

After DMP enrollment:

  • Average negotiated interest rate: 7.29%
  • Total interest charges: $1,616.21
  • Time to payoff: 4 years
  • Total monthly payment: $309.00
Time Saved:
7 years
Monthly Savings:
$52.92
Interest Saved:
$6,028.02