Debt Settlement in Arizona
Arizona Debt Laws & Statistics
Arizona consumers carry an average credit card debt of just over $5,000 and maintain average credit scores of just under 680. The unemployment rate across the state is just under 8%.
Under the laws of the Fair Debt Collection Practices Act (FDCPA), Arizona consumers have protections such as:
- All debtors are allowed to see an agency’s records concerning their debt free of charge.
- Collection agencies cannot contact a debtor’s place of work until good effort has been made to contact them at home and no contact has been made.
- A collection agency cannot solicit a third party to get information about the debt or to pressure a debtor into paying a debt when they are not legally bound to.
- When first contacting a debtor, a collection agency must discuss: the time & place where the debt was created, the goods or services received in return, the creditor’s name, and the exact date that the debt went into collections.
- Collection agencies can charge a maximum interest rate of 10%.
Arizona Statute of Limitations
The statute of limitations is a law set by the state that determines the maximum amount of time that legal proceedings can be started based on the debt. These limitations vary from state to state and by the type of delinquent debt. For Arizona debt, these are the applicable limitations:
- Promissory Notes: 3 Years
- Open Credit Card Accounts: 3 Years
- Oral Contracts: 3 Years
- Written Contracts: 3 Years
Get Informed About Debt Relief in Arizona
How Does Debt Settlement Work in Arizona?
Debt Settlement is a process of negotiating down the principal balance and interest rates on unsecured personal debt accounts. This form of debt relief can be drastically different from Debt Consolidation and Credit Counseling, which only affect the interest rates & do not affect the total debt balance.
By negotiating the balance down, Arizona Debt Settlement can provide the potentially quickest route of getting back to even. Most Arizona creditors are willing to accept payments that are less than the total debt balance to close out an account rather than lose the entire amount when a debtor files for bankruptcy.
New Era debt negotiators are experts with nearly two decades of experience at getting you some awesome deals in Arizona, but the offers don’t last forever. Call New Era Debt Solutions for the best debt settlement in Maricopa County, Pima County, Pinal County & more areas across Arizona.
Types of Debt That Can Be Reduced with Arizona Debt Settlement:
- Unsecured Credit cards
- Department store credit cards
- Private student loans in default
- Old repossessions
- Signature loans
- Personal lines of credit
- Old judgments
- Other unsecured debts
Types of Debts That Don’t Qualify for Arizona Debt Settlement:
- Home mortgages
- Federal student loans
- Car loans
- Other secured debts
- Credit Union debts
- Medical / Hospital bills
Top Cities for Arizona Debt Settlement
- Phoenix Debt Settlement
- Tucson Debt Settlement
- Mesa Debt Settlement
- Chandler Debt Settlement
- Glendale Debt Settlement
- Scottsdale Debt Settlement
- Gilbert Debt Settlement
- Tempe Debt Settlement
- Peoria Debt Settlement
- Surprise Debt Settlement
This list is not exhaustive. Be sure to check with your Arizona debt counselor.
Consider Your Options for Debt Relief in Arizona
Below are five common debt relief methods used by Arizona consumers.
1. Continue making minimum monthly payments.
Making minimum payments to pay off a debt may feel like the easy way out, but this might just be the worst strategy. Not only is this often the longest road to financial freedom, but it is also often the costliest.
2. Credit Counseling or Debt Management.
Credit counseling programs are a form debt management where a single monthly payment is made to a credit counseling agency which is then distributed to your creditors on your behalf. With this form of debt relief, a debtor still ends up paying back 100% of the debt plus interest, but may end up paying less because of reduced interest rates. These debt management programs are designed to take 3 to 5 years and have low rates of completion in Arizona.
3. Debt Consolidation.
With debt consolidation, you take out a larger, low-interest loan and use that money to pay off your higher-interest unsecured loans. This leaves you making a single monthly payment that is – in theory – lower than what you were paying for all your credit card and other unsecured loans.
4. Debt Settlement or Debt Negotiation in Arizona.
Debt settlement differs from the first two options in that the actual principal balance you owe is negotiated downward. Because you end up owing less, debt settlement is generally a faster and less expensive debt relief option than either debt counseling or debt consolidation. Call experts at New Era Debt Solutions for experienced help with Phoenix debt settlement, Tucson debt settlement, or Mesa debt settlement.
5. Bankruptcy.
For the individual who cannot meet his or her debt obligations, bankruptcy may be inevitable. A formal declaration of bankruptcy stops the creditor collection process, and the debtor no longer owes some or all the unsecured debt.
Arizona Debt Settlement FAQs
Am I Responsible for My Spouse’s Debts in the State of Arizona?
In a community property state such as Arizona, marital assets are jointly owned and a spouse is responsible for repaying the debts of their significant other, even if the spouse dies. In the case of a divorce, the debts acquired during the marriage can be split evenly among the two spouses.
Assets that are acquired during the marriage are designated as community owned and can include things such as: personal property, savings accounts, retirement accounts, and real estate properties.
Responsibility for repaying debts for assets like these that are acquired during the marriage may be able to be passed on to the surviving spouse.
How Do I Respond to a Collection Letter in Arizona?
If a debt collection agency contacts you in Arizona, the first step that you can take is to respond by asking for a validation notice in writing. This notice will provide information such as the total amount owed on the debt, the name and contact information for the collections firm, where the debt came from, and your options on disputing the debt.
If you believe the collection agency is acting in an unlawful way to attempt to collect the debt from you, regardless of whether or not the debt is yours, you can contact the Arizona attorney general’s office in Tucson (520-628-6504), Phoenix (602-542-5763), or other parts of the state (800-352-8431), or file a consumer complaint online.
Do you have a legitimate financial hardship?
Most debt problems in Arizona are caused by loss of income, medical issues, or divorce / separation. These are legitimate financial hardships that can happen to anyone through no fault of their own, and any one of these situations can wreak havoc on a household budget.
Debt Settlement system is not a “free lunch” for people who don’t feel like paying their bills. If you are over your head due to a hardship circumstance, and you’d prefer to work things out with your creditors rather than declare bankruptcy in Arizona, then Debt Settlement can provide an honest and ethical debt relief alternative.
Are you committed to getting out from under your debt?
Debt Settlement is an aggressive approach to debt relief; and, as such, it presents an occasional challenge. Your level of commitment to staying the course, even when the road gets a little bumpy, often determines success. For those who are willing to see it through, debt settlement can get you through your financial difficulties faster and at a lower cost than any other debt relief option in Arizona.
Are your debts primarily from credit cards?
Most types of unsecured debt can be negotiated, including lines of credit, signature loans, repossession deficiencies, financing contracts, department store cards, miscellaneous bills and more. The deepest discounts, however, are usually obtained with credit card debts; so, if most of your debt load is comprised of credit card debt, you can anticipate good results from the Debt Settlement strategy.
Can I Trust New Era?
You can pick the good guys from the bad guys by asking 14 important questions. It is always a good idea to check with the Better Business Bureau for the company’s rating and complaint history with consumers in Arizona. New Era Debt Solutions is rated an A+ with the Better Business Bureau.
New Era has been helping Arizona consumers become debt free since 1999. We’ve settled more than $275,000,000 in debt and worked with thousands of clients across most states. But don’t take our word for it. Visit our Testimonials page to read or listen to our clients’ stories in their own words.
Here’s what makes New Era different:
No Upfront Fees. A Debt Settlement company should not charge you any fees unless or until they settle your debt. Period. This is not only the most ethical way to do business – per an FTC ruling effective October 27, 2010, it’s also the only legal way to charge fees.
- No “add-on” fees. Some debt settlement companies try to get around the law by charging administrative fees, signing fees, consultation fees and various other excuses to get money from you. Good guy debt settlement companies such as New Era charge only a settlement fee, which you do not pay until your debt is settled.
- End-to-end service. Some “debt settlement” companies you may talk with are only sales groups who will sell or pass your account off to a different company to handle your settlement. This means your financial data is being passed around and the sales person has no control over – or interest in – how your debt is settled. Look for a company such as New Era who will handle your program from beginning to end.
- Experience. With the crash of the sub-prime mortgage industry in Arizona many new debt settlement companies headed by prior mortgage industry people suddenly popped up. These companies do not have nearly the experience or the relationships that lead to your best settlement deals. Look for companies who have been around long enough to amass a solid settlement track record. For example, New Era has been settling debts since 1999, and we’ve settled more than $275,000,000 in debt for our clients.
Get Started Today
The most successful debt settlement clients in Arizona are those who are ready and willing to respond immediately. Consumers in Arizona can get a FREE analysis of their debt. We will show you how much time and money you can save. Contact New Era Debt Solutions to get started.