Arizona Debt Relief

Arizona is a place known for deserts, hot weather and casinos. Living near casinos alone can put a damper on one’s financial situation (especially if they’re not lucky). The state has the 15th biggest population in the U.S. and it’s largest city happens to be the capital.

debt relief in arizonaThe median household income in Arizona is $50,448 – the 22nd highest in America. However, the unemployment rate as of 2010 was 9.6%, which could have contributed to the rising debt in the state. The amount of credit card debt in the state, as of 2011, was $6,811.

Arizona Laws Related to Debt Collection

In order to help protect Arizona residents from debt collectors, the Fair Debt Collection Practices Act was set forth by the Federal Trade Commission. Each state has regulations regarding how debt can be collected from debtors fairly. Below is a look into some of the laws that protect Arizona debtors:

  • No mail is allowed to be sent to the debtor’s place of work from the collector, unless attempts to contact debtor at home has failed.
  • Debtors are allowed to request records of their debt from the collection agency at no charge.
  • It is not allowed for debt collectors to use a third party entity to place pressure on debtors to pay off a debt or to pay a debt that they’re not legally obligated to.
  • When debt collectors first make contact with the debtor, it must be made known who the creditor is, how much is owed, when the debt was made, the service or goods bought and when the debt was placed in the hands of the collection agency.

Knowing your rights is very important when it comes to debt collection. There are a lot of illegal actions being made on behalf of collectors that go unnoticed because individuals don’t know their rights. A debt relief agency in Arizona can be used to help you determine the best moves to make, or a lawyer can be hired to help settle the matter.

Debt Relief in Arizona

When in debt, there are options to get out of it. It takes the right type of company, the dedication and time to get rid of debt. Learning better money practices is also a good idea to help consumers remain out of debt. This is where debt counseling comes into play. Here is a look into the different types of Arizona debt relief that are available:

  • Debt management/settlement: When a debt management company handles negotiations on the behalf of the debtor. Their purpose is to lower the monthly payments or the lump sum payment, so it can be paid off quicker.
  • Debt consolidation loans: A loan that can be used to pay off all remaining debts, leaving just one debt to be paid back – the loan. This is available at debt consolidation companies, banks and some lenders.
  • Debt counseling: Services that help debtors to sort out their finances, pay off debts and refrain from creating even more debt.

Whatever options an Arizona debtor chooses, he or she should be sure to choose a debt relief agency that is licensed by the state of Arizona and that has been in business for at least a few years.

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