“The Natural State’s” low cost of living, low property taxes, and reasonably priced homes are driving factors for why people call Arkansas home. But much like the rest of the country, home prices rise as competition stiffens up and inventory declines.
“Even though Arkansans are handling their credit card balances fairly well, they are still experiencing rising housing prices,” explains Gary Herman, President of Consolidated Credit. “When coupled with the inflation we’re seeing nationwide, it means that people’s budgets are getting squeezed. The best solution is to be completely debt-free with no credit card balances hanging around.”
The latest available data shows that the average Arkansas household has $9,597 in credit card debt. Citizens in this state collectively owe $10,255,700,681, an increase of $286,221,978 from the beginning of the year.
Consolidated Credit Helps Arkansas Residents Reduce Their Total Credit Card Payments by Up to 50%
This chart shows a breakdown of average consumer debt in Arkansas based on the latest Household Debt report from the Federal Reserve.
The latest available data shows 6,255 Arkansans filed for bankruptcy last year.
Income and employment in Arkansas
Arkansas is a right-to-work state. That means employees cannot be denied employment based on whether they are affiliated or not affiliated with a union. Employees can also not be forced to join or leave a union against their will and are not obligated to pay union dues. However, employees are still allowed to enjoy union benefits even if they are not union members.
Moreover, Arkansas is an employment-at-will state, which means an employer can terminate employment at any time and for any reason. In the same vein, employees can resign at any moment and for any reason. That means an employer and employee do not guarantee they will uphold employment.
The unemployment rate in Arkansas has stayed steady at around 3.4%, which is slightly lower than the nationwide average of 4.1%.
Arkansas’s income tax ranges between 2% and 4.4%. The state also imposes a 6.5% state sales tax. The average combined state and local sales tax rate is 9.45%.
Banking is fairly uncommon in Arkansas compared to the rest of the U.S., as 9.7% of Arkansas residents do not have checking or savings accounts.
Arkansas housing market
Arkansas home prices have recently been ranked the third-lowest in the United States. The state also generally experiences low property and income taxes.
Bigger cities come with higher expenses. The capital of Arkansas, Little Rock, has an average home price of $210,195, whereas Bentonville has a significantly higher average listing price of $458,251 since the northwest is fairly popular. But if you’re drawn to the northwest, you’re better off searching for homes in Fayetteville because you could find a home for a lower price ($359,350).
65.9% of Arkansans are homeowners
Median monthly owner cost, including mortgage: $1,240
Median gross rent: $868
The state of Arkansas helps those seeking mortgage relief through the Arkansas Homeowner Assistance Fund (HAF). If you are finding it challenging to make rental payments, seek assistance through Arkansas’s rental programs.
Talk to a HUD-certified housing counselor to get help with the housing challenges you’re facing
CNBC reported in 2024 that the average Arkansas resident would need about $51,211 a year to retire. A 20% comfort buffer ($10,242) is recommended. That means the target for a comfortable retirement in Arkansas would be about $61,454.
With affordable property taxes, warm weather, and a low cost of living, it’s no surprise people are drawn to Arkansas for retirement. And since the state income tax is fairly average (between 2%-4.4%), people may consider states with no income tax more appealing.
Average Arkansas insurance premiums
Much like most U.S. states, Arkansas operates under a fault-based system for car accidents. That means if you are “at fault” for causing a collision, you will be responsible for the collision and any other expenses. Auto insurance premiums are fairly high at $2,374.
Regarding average annual home insurance premiums, Arkansans pay an average of $2,972 a year for $300,000 in dwelling coverage. Annual health insurance costs Arkansans an average of $6,653 a month.
According to the Census Bureau, Arkansas is home to 178,677 Veterans. These resources are available to help Veterans facing unemployment, homelessness, and other hardships.
The Arkansas Department of Veteran Affairs National crisis hotline: (800) 273-8255 Florida Veterans Support Line: (501) 683-2382 Headquarters: 501 Woodlane Drive, Suite 401N Little Rock, Arkansas 72201 (501) 683-1787
Benefits and Assistance Division 2401 John Ashley Drive North Little Rock, Arkansas 72114 (501) 683-2382
How Consolidated Credit helps Arkansas residents find debt relief
In 2024, Consolidated Credit provided free credit counseling services to 1,713 credit users in Arkansas. Of those, 333 went on to consolidate their debt with our help through a debt management program (the average amount of debt enrolled was $11,063). Those who did not enroll received a free debt analysis and complementary budget evaluation and were directed to the right solutions for their respective situations.
We’d also like to congratulate the 122 Arkansas residents who got debt-free last year with the help of Consolidated Credit!
Relief options to consider if you’re in debt in Arkansas
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 can refinance your debt at a low-interest rate and enjoy 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 Arkansan residents with high debt and a good credit score.
Arkansan 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 Arkansas residents with counseling programs that identify the best way to get out of debt after considering their situations. Arkansan 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 Arkansas, 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 Arkansan can get out of debt in 36-60 payments, on average.
Another option for Arkansas 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 Arkansan 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 Arkansas. If you’re facing challenges with debt, call us at (844) 276-1544to receive a free debt and budget evaluation from a certified credit counselor.
Ready to solve your problems with debt? Talk to a certified credit counselor for free to find the best way to get out of debt for you.
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.
