Arizona Debt Relief Options
- It’s possible to get out of debt — no matter how much you owe — in Arizona.
- Debt collectors have to follow federal law in Arizona. The Fair Debt Collection Practices Act protects you from harassment, abuse and unfair treatment.
- The statute of limitations on debt in Arizona ranges from four to 10 years, depending on the kind of debt you owe.
Arizona debt relief options
If you live in Arizona and need relief from debt, you’re not alone. Many Arizonans are facing the same stress, and there are real options to help you move forward.
Even with an overwhelming amount of debt, you can use debt relief strategies and programs to finally put your debt behind you. Here are some of the best debt relief options depending on your current financial situation:
DIY budget
Best if you can afford to put more money toward your debts every month
You can create your own budget and use strategies like the debt avalanche or debt snowball method to knock out your debts one by one.
Get started by creating your own budget to pay off debt.
It’s intimidating to pick up the phone and call your credit card company, but it could be worth some serious cash. In fact, 83% of people who asked for a lower credit card rate got one. A lower rate can help you clear your debts even faster.
Credit counseling
Best if you don’t know where to start
Talking to a credit counselor can be a huge relief when you’re not sure where to start. Your counselor will review your finances without judgment and suggest different strategies to tackle your debt based on what you can afford. The main benefit? A finance professional will walk you through your options step by step, typically at little cost to you.
Get started by working with a certified credit counselor.
Debt consolidation
Best if you have high interest rates across multiple debts
When you consolidate your debt, you use a credit card or loan to pay off multiple existing debts. Then you make a single payment to your new credit card company or lender. You could save money on interest by getting a lower interest rate on your new credit card or loan, which can help you get out of debt faster.
Get started by comparing 0% APR credit cards (for good to excellent credit) and debt consolidation loans.
Debt settlement
Best if you can’t afford to pay off your debt any other way
Debt settlement means negotiating with your creditors to pay off your debt for less than you owe. Talk to a credit counselor before working with a debt settlement company or negotiating a settlement yourself — debt settlement affects your credit and stays on your credit report for seven years.
Get started by learning more about debt settlement vs. debt consolidation.
Compare your debt relief options
Get personalized debt relief solutions that may reduce what you owe and help you regain financial stability.
Bankruptcy
Best if you have an overwhelming amount of debt
When the bills feel endless and you can’t find a way out, bankruptcy can clear your debt and give you a fresh start. It’s not a decision to be made lightly — bankruptcy typically affects your credit for seven to 10 years — but it’s possible to recover from bankruptcy and live a debt-free life again.
Get started by reading about the pros and cons of filing for bankruptcy.
Debt collection laws in Arizona
It’s hard enough to be in debt without worrying about how debt collectors will treat you. It’s important to know that you have rights. A federal law called the Fair Debt Collection Practices Act protects you from abusive, unfair and misleading treatment from debt collectors.
When you haven’t paid a debt — like a bill, credit card or loan — the company you owe can sell it to a debt collection agency. But debt collectors have to follow the law, and there are regulations about when and how they can contact you and collect the debt.
For instance, a debt collector must send you a debt validation letter to identify who they are, where the debt came from and how much you owe. You also have the right to dispute the debt or ask for more information within 30 days of receiving this letter.
If a debt collection agency is violating your right to fair treatment or if you think it’s a scam, file a complaint with the Arizona attorney general.
You can also call 602-542-5763 if you’re in Phoenix, 520-628-6648 if you’re in Tucson or 800-352-8431 if you’re anywhere else in Arizona.
Debt statute of limitations in Arizona
The statute of limitations on debt measures how long your creditor or debt collector can sue you over the debt you owe. In Arizona, the time limit depends on the kind of debt you owe:
- Car loan (if car was repossessed): Four years
- Credit card debt (and debt from written contracts): Six years
- Medical debt: Six years
- State tax debt: 10 years
Once the statute of limitations has passed, it becomes time-barred debt, meaning that you can’t be sued for it. This doesn’t wipe out your debt — you just won’t have to go to court over it.
Read about the statute of limitations on debt and when the clock starts for different types of debt.
Arizona debt statistics
Arizonans have slightly more debt overall than the national average, but household financial insecurity (not being able to make ends meet) is in line with the average across the U.S.
Here’s how debt in Arizona compares to national averages:
- Monthly debt payments: Arizonans pay $1,616 monthly toward debt, versus the national average of $1,597.
- Total credit card debt: On average, Arizonans hold $8,029 in credit card debt, compared to the national average of $7,321.
- Financial insecurity: 36.2% of Arizona households — versus 36.4% of American households — report that it’s hard to pay usual expenses.
Arizonans may be in slightly more debt on average, but Arizona’s consumer protection laws make payday loans illegal. Loan interest rates are capped at 36% in Arizona, protecting residents from predatory loans.
Frequently asked questions
There’s more than one Arizona debt relief program. If you live in Arizona and have debt, you can find debt relief by:
- Creating a plan to pay off your debt
- Consolidating your debt
- Settling your debt
- Filing for bankruptcy
Consider all of your debt relief options before moving forward with a plan.
The federal government and some states offer student loan forgiveness to certain people, especially those who work in public service positions, like teachers or government employees.
If you’re lying awake at night wondering how you’ll make ends meet, it’s likely worth your time to make an appointment with a nonprofit credit counselor to talk about your debt relief options. You can find relief by working with your counselor on a debt management plan or by pursuing another debt relief option that works best for you.
No matter your situation, we’ll find the best solution together. Just a few clicks (or taps) away!