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%
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.
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.
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.
Talk to a HUD-certified housing counselor to get help with the housing challenges you’re facing
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 Social Security for 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.
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.
How Consolidated Credit helps Arizona residents find debt relief
In 2021, Consolidated Credit provided free credit counseling to 4,094 Arizona residents. Of those, 174 went on to consolidate their debt with our help through a debt management program (the average amount of debt enrolled was $10,216). The others received a free debt analysis and complementary budget evaluation, and they were directed to the right solution for their situation to get out of debt as quickly as possible.
We’d also like to congratulate the 175 Arizona residents that got debt-free last year with the help of Consolidated Credit!
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 (844) 276-1544 to receive a free debt and budget evaluation from a certified credit counselor.
Don’t let high interest rate credit card debt hold you back! Talk to a certified credit counselor to understand your options for debt relief
Case Study
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
Case Study
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
Case Study
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
Ready to see if you qualify for debt relief through Consolidated Credit? Talk to a certified credit counselor now for a free debt and budget evaluation.
This content is based on accredited financial data gathered from reputable sources, such as government websites, credit bureaus, and nonprofit organizations. All articles are written by certified credit counselors and fact checked by certified financial experts.
Our team strives to provide educational content that fully informs readers of all their options as they relate to debt, credit and personal finance. Our goal is to give readers the information they need to make informed financial decisions on their own.
This article contains references that provide sources for the financial data we used. The numbers in brackets [1,2,3] are clickable links to each data source or study referenced.
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Consolidated Credit has helped over 10.2 million people find relief from debt. Now we’re here to help you.
Your counselor will help you complete and review your debt and budget analysis, then they’ll discuss the best options for getting you out of debt. If a debt management program is right for you, your counselor can also help you enroll as soon as you’re ready.
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