Even though Arizona ranked as a “low credit risk” state, it has since changed. Due to this, people are trying to find a proper debt consolidation avenue frantically. Indeed, there are various strategies for debt consolidation in Arizona that you can indulge in.
For example, you can opt for a HELOC or go into a debt management program. Both of which will help you move into the debt-free list.
Even with the benefits, the forecasted debt of the Arizona state can reach up to $17.31 billion by 2026. Do you want to fall in this category, or do you want to live a stress-free life? You cannot go back and change the situation which led you here.
All you can do is look for the best debt consolidation option!
What is Debt Consolidation in Arizona?
Arizona debt consolidation refers to a safe and sensible alternative to declaring bankruptcy. It can be a perfect solution when you have exhausted your card limits and have minimal funds to pay the debt. Through debt consolidation in Arizona, you can pay off the debts without overwhelming the finances.
In 2020, Arizona witnessed 1,047 bankruptcy claims due to the pandemic. However, all of that could have been avoided with proper debt consolidation steps.
You can remove consumer, government, and personal debt by refinancing your loans through debt consolidation. At the same time, you can even choose to reach out to government programs. It can help you with your financial stature.
Even then, consolidating your debts will allow you to live a stress-free life.
How to Consolidate Your Debt in Arizona?
The best way to consolidate your debt as an Arizona citizen is to choose from various relief options.
Before the pandemic, the state has had an excellent economic stature. However, it started to decline as 2/3 of the population lost their jobs.
Even though numerous debt relief avenues are available, it would be best to choose from these strategic options. You can choose either and ensure healthy living – both mentally and physically.
Debt Consolidation Loans
Such a loan can be an excellent option for a good credit score. A debt consolidation loan will help you get rid of the debt build-up from your credit card. Moreover, it will also help pay off your unsecured debts.
With this, you will have a low-interest rate for all your loans. But it will only be applicable for people with a good credit score.
Such loans will help you refinance your debts with a monthly payment option. Consequently, it will eventually assist you in being debt-free faster as you pay less every month.
Note: Arizona residents with high debt but good credit should apply for debt consolidation loans.
Home Equity Loans (HELOC)
Any homeowner in the state could qualify for equity loans. In Arizona, such loans are usually referred to as a “Home Equity Loan of Credit (HELOC).”
If you choose to apply for this loan, you can use the equity on your house to pay off outstanding debts. For example, you can borrow money against your home’s equity to become debt-free. However, this step comes with severe consequences and implications.
In case you fail to pay, you can lose your home!
Credit Counselling and Debt Management Program (DMP)
Who better to manage your finances other than professionals? If you want to avoid bankruptcy, getting help from a debt management agency is advisable. Enrolling in a credit counseling agency will help you reduce expenditure to help facilitate repayments.
It would be wise to get help when you have a job and avoid credit damage. Arizona’s agency will help you develop a payment schedule and reduce/eliminate the interest rate.
Credit counseling for debt consolidation in Arizona is essential. They will help you evaluate your budget and identify the problems.
This way, you can determine the best actionable course to meet your financial goals.
Even though this will hamper your credit score, it can be a good option if nothing else can be done. Arizonians can settle their debts by paying the creditors’ a portion and coming to a negotiation. However, you will need assistance from a debt settlement company or a lawyer.
When you opt for debt settlement, you independently settle some of your debt. Moreover, you can choose this when you feel overwhelmed with your debt.
Note: This can negatively hamper your credit rating for years to come.
Debt Resources Given by The Government of Arizona
The Arizona Department of Housing offers mortgage payment options under their hardship programs. You can visit the FHFA website to gain information about mortgage services during the pandemic.
The Federal Housing Finance Agency paired with the Department of Housing and Consumer Financial Protection Bureau. They acted together to provide a “CARES Act relief” for your mortgage.
They offer assistance from scams and protect renters by providing resources.
Another program, named “Save Our Home AZ,” helps unemployed or underemployed residents. It offers subsidy assistance for your mortgage and enables you to avoid home foreclosures.
Even the Arizona Department of Health offers services that assist unemployed residents. The government helps low-income Arizonians with debt consolidation and insurance programs.
Apart from these, you can find various programs that offer economic stability and security for people in the state. You can choose to reach out for help from these avenues. Or, you could go for the fundamental debt consolidation in Arizona tactics mentioned above.
The Bottom Line
The only way to avoid declaring bankruptcy is to choose the right debt consolidation in Arizona strategy. You can either take help from debt consolidation companies or seek counseling. Furthermore, it would be a good idea to settle your debt if you have exhausted all your resources.
Debt consolidation loans and HELOC are great options to keep your financial boat afloat. But you need to understand that you are not alone in this fight.
The pandemic worsened the financial condition by 25% because of failed investment income. Hence, it is crucial to analyze your options to claim liabilities from the state.
This way, you can bask in the sun without worrying about your bank balance. A new era is brewing; are you ready to be a part of it?