How to Get Debt Relief in Arizona

George Simons | October 19, 2022

Co-Founder of SoloSuit
George Simons, JD/MBA

George Simons is the co-founder and CEO of SoloSuit. He has helped Americans protect over $1 billion from predatory debt lawsuits. George graduated from BYU Law school in 2020 with a JD-MBA. In his spare time, George likes to cook, because he likes to eat.

Edited by Hannah Locklear

Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Struggling with debt in the Grand Canyon state? We can help.

Summary: If you're struggling with debt in Arizona, SoloSuit can help you find the relief you need.

If you are a resident of Arizona, you may have noticed a wave of new homes being built in and around your neighborhood. This is largely due to the fact that Arizona is the sixth fastest-growing state in the entire country. For example, more than 260,000 people relocated to Arizona each year between 2014 and 2018, according to housing data from the United States Census Bureau. There are many reasons why people opted to move to Arizona (e.g., reasonable cost of living, amazing natural attractions and overall ambiance), but there remain serious economic headwinds impacting residents of the Grand Canyon State.

For example, Arizona has one of the highest poverty rates and lowest personal income rates in the country. If that was not bad enough, the average resident of Arizona was carrying around $54,000 in debt, according to data from the New York Federal Reserve.

If you live in Arizona and are having a difficult time making payments towards your debt (including credit card payments, medical debt payments, student loan payments, etc.), you should explore your options for how to get debt relief in Arizona.

Use these debt relief strategies in Arizona

Below is a list of commonly used strategies that have helped people achieve debt relief:

The “snowball” strategy
The “avalanche” strategy
Consolidate your debt

If you've fallen behind on payments and feel overwhelmed by debt, using one of these strategies can help you see the light at the end of the tunnel. Now, let's break each one down in detail.

Pay down debt with the “snowball” strategy

With the debt snowball strategy, you pay your smallest debt first and continue to make minimum payments on other debts to ensure you do not go into default. After you pay off the smallest balance, you then take that payment and roll it into the amount being applied toward your next balance. Once that balance is paid, you roll both payment amounts to the next highest balance and so on.

Pay off debt with the “avalanche” strategy

With the debt avalanche strategy, you begin by paying off the balance with the highest interest rate while continuing to pay the minimum payments on all of your other debts. When that balance is paid, you redirect that same payment towards another balance with the second highest interest rate, and so on.

Consolidate your debt

When you are carrying debt through multiple credit cards and other accounts, it may be beneficial to consider debt consolidation. Essentially it allows you to combine multiple debts into a single debt where you make one payment. This will, in turn, make your payments more manageable and should allow you to pay off your debt faster. There are a variety of debt consolidation methods, including balance transfer cards and personal loans.

How to get debt relief in Arizona through government programs

Below is a list of specific debt relief programs and initiatives exclusively available to Arizona residents:

Save Our Home AZ - this is a state program available to underemployed and unemployed residents of Arizona. This program provides subsidy assistance to help people make their monthly mortgage payments. The program can also assist with principal reduction and the elimination of a second lien.
Arizona Cash Assistance - this program provides assistance to minors living in Arizona.The program offers job preparation advice, recommendations on how to succeed in a work environment and in married life.
Lawyers Helping Homeowners - this program provides donated services from attorneys and paralegals to assist people on the brink of foreclosure and ensuring they can remain in their homes. The Arizona Foundation for Legal Services & Education, the State Bar of Arizona, and the Arizona Supreme Court coordinate the program.

Explore debt management programs

If you need assistance implementing one or more of the debt relief strategies listed above, it may make sense to consider a debt management program administered by a professional nonprofit credit counseling company.

How debt management programs typically work

If you opt for a debt management program, there is a good chance you will work with a credit counseling company who will aid in negotiating your debt with the goal of reducing the interest rates on your debt and the fees being charged. These negotiations can be beneficial and ultimately result in you paying a lower amount each month towards debt servicing.

In addition to helping negotiate a reduction in the interest rates and fees that apply to your debt, a credit counseling company will also offer lessons and guidance to help strengthen your financial planning skills. These skills include effectively developing a monthly budget, managing and tracking your spending, monitoring your credit, and sticking with long-term financial goals.

Is a debt management program right for you?

Not everyone wants or needs to participate in a debt management program. For example, someone who was fairly adept at managing their finances, but suddenly got saddled with thousands of dollars in medical debt, may not need a debt management program. However, you may want to choose a debt management program if:

You are struggling to manage a significant amount of credit card debt
Your credit score does not qualify you for a balance transfer credit card
Your credit score does not qualify you for a personal loan
You are looking for a clear, detailed plan to help you avoid accruing more debt in the future

Explore working with a debt settlement company

In addition to debt management counselors, another option available to residents of the Grand Canyon State for figuring out how to get debt relief in Arizona includes working with a debt settlement company. Though, it is important to note at the very beginning that not all debt settlement companies are the same and there are some companies with questionable operations that could actually make your financial situation worse rather than better. This is why you need to exercise a level of due diligence when considering actually using a debt settlement company.

How debt settlement companies typically operate

If you decide to work with a debt settlement company, they will likely advise you to stop paying your creditors and any debt collectors while you negotiate a lower payment. The next step typically entails the debt settlement company stepping in and paying the creditors and debt collectors on your behalf.

The benefit is that many people who use a debt settlement company will typically only have to pay between 50%-80% of the total amount owed in debt. However, this payment reduction comes at a fairly steep price. For example, debt settlement companies do not work for free and will usually charge a fee that is equivalent to between 15%-25% of the amount settled.

Another big drawback to using a debt settlement company is the damage that can be inflicted on your credit score and credit report. Because debt settlement companies typically do not pay creditors during their negotiation process, your accounts will likely go into default, and you may receive calls from aggressive and disrespectful debt collectors. In addition, the lack of timely payments will probably get reported to the three major credit bureaus (Experian, TransUnion, and Equifax). This negative mark stays on your report for seven years. Whether the debt settlement is successful or not, your credit will most likely be harmed.

Summary

If you reside in Arizona and are struggling with a significant amount of debt (whether that be credit card debt, student loan debt, medical debt, etc.), do not throw your hands up in despair and embrace a life where you are perpetually dragged down by debt service payments. There are options available to show you how to get debt relief in Arizona. Those options may include debt consolidation, negotiating a debt settlement with your creditors, or filing for bankruptcy.

No matter the option you choose, SoloSuit is here to help. Check out these informational resources to provide additional insight on the best ways to get debt relief:

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

Respond with SoloSuit

"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James

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>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate