In 2017, Americans hit a record high debt of $13 trillion, far surpassing the previous record of $280 billion set in 2008 after the recession. While easy to fall into debt, it's difficult to climb out. Debt consolidation can be a good option to chip away at debt instead of filing for bankruptcy. The best debt consolidation companies in Phoenix offer a variety of services, from credit card settlement to educational tools to reach your consolidation goals.
In Phoenix, debt is deep. The average credit card debt an Arizonan carries is $7,100. This is higher than the national average credit card debt of $5,700. In other areas of the country, specifically Wisconsin and Michigan, debt is getting lower. In Phoenix, debt is on the rise.
Ironically, debt tends to rise with income. Phoenix is currently enjoying a strong job market, with three Phoenix suburbs ranking in the top 11 cities nationwide with booming employment growth. They are Gilbert, Chandler and Peoria—with Chandler and Peoria tied for top spot. According to the U.S. Census, the average Phoenix income is $49,328, about $5,000 lower than the national average.
Debt consolidation loans in Phoenix
Many people turn to debt consolidation as a way to get out of debt. Debt consolidation companies create a plan that simplifies what you owe by combining multiple debts into one payment. The combined debts usually include high interest rate credit cards. By consolidating, you lower the interest rate on many debts, thereby cutting down total monthly payments. To pay off the high interest debt quickly, you may also opt for a debt consolidation loan. This means you combine all debts and receive a loan for that amount. The loan pays the debts, then you pay off the loan.
Debt consolidation can be beneficial for many people as a way to avoid bankruptcy, especially if you owe less than 50 percent of your annual income. Lowering interest rates can save quite a bit on monthly costs. And if you have been late on payments, following a plan can help repair damaged credit. Adhering to a plan or a loan also forces you to make progress and get out of debt within the plan or loan terms, often three to five years. You may be able to save even more by signing up for automatic payments.
There is also a downside to debt consolidation. If you fail to make payments, your accounts could be sent to collection agencies and your credit score will suffer. There are also debt consolidation companies that are not legitimate and take advantage of consumers. They take monthly payments from you, but don’t pay your debts.
Before choosing a debt consolidation company, it’s important to research the following:
Type of lending company: private bank or marketplace lender
Interest rate type: fixed APR or variable-rate?
Loan and refinancing terms: minimum and maximum loan amount, length of the loan, time it takes to receive funds, how you receive funds, etc.
Fees and penalties: fees for processing, prepayment of the loan and late payments.
Repayment options: includes autopay, paying online, paying by check or paying by phone; some lenders let you choose a monthly payment date convenient for you.
National Debt Relief is a trusted name in credit card debt settlement. With a source of income, you can quickly qualify and pay no upfront fees until your debt is settled. National Debt Relief can reduce debt up to 49 percent through transparent, helpful customer service, which earns them excellent reviews
For debt relief solutions, CreditAssociates works to settle debt in 24 to 36 months. Good credit is not required and customers get a free, no obligation consultation by speaking to trained advisors who are experts in negotiating down debt. Customer reviews speak highly of agents for being professional, helpful and communicative.
Accredited Debt Relief uses proven negotiators to work with top debt relief companies across the country, helping customers settle their debts for less than what they owe. The company is an accredited member of the American Fair Credit Council and gives back to community charities monthly. Customers often give Accredited Debt Relief five star reviews, noting their professional, personalized service.
The goal of Freedom Debt Relief is to resolve your debt for much less than you owe, as quickly as possible. The process starts with a personal phone call with a certified debt consultant who reviews your options, then can set up a customized plan with payments you are comfortable with. Clients can then view their progress 24/7 through the online dashboard.
With certified debt counselors to guide your debt settlement every step of the way, Pacific Debt charges no upfront fees until you get results. The company has helped settle more than $200 million in debt for clients. Reviews speak highly of having access to a personal account manager who can help set up an affordable payment plan.
Debt Rx is an experienced debt settlement company. They work with people having $7,500 or more in credit card debt. The company prides itself on being smaller than its competitors to better focus on personal service to find individual solutions for debt relief. For those behind on payments, Debt Rx may be the right prescription to ease the pain of being in debt.
CountryWide Debt Relief
At CountryWide Debt Relief, approval of a debt consolidation option is guaranteed and you can see what you qualify for in a matter of minutes. A variety of plans try to get customers debt-free in just a year or two. Case studies on their website show how debt consolidation plans have worked for others.
Phoenix Debt Relief Help Center
If you want to meet with someone local in-person, Phoenix Debt Relief Help Center is a good option. This organization offers a non-profit debt consolidation program, as well as free consumer credit counseling. Customers work with a credit counselor one-on-one to minimize debt interest and reduce payments rather than settle debts.
Arizona Federal Credit Union
While not a debt consolidation company, Arizona Federal Credit Union is a local bank that offers competitive rates for closed-end personal loans and personal lines of credit, which can be used to consolidate and pay off higher interest rate debts. As a member, you can meet with a coach annually to review your credit, attend free workshops on a variety of financial topics and use the online money management tool to track spending.