 With the struggling economy, many people are finding themselves deep in credit card debt. Therefore, consumers are forced to turn to debt consolidation in order to get control of their finances. However, before a person decides to consolidate their credit card debt, they need to be aware of the credit... |
|
Living with debt is by no means easy. There’s the constant concern of living paycheck to paycheck and the never ending issue of covering monthly bills and living expenses. While most of us pride ourselves on being self-sufficient, it’s hard to ignore that we all sometimes live well beyond our means.... |
A more complete debt settlement calculator
|
|
| Arizona |
|
Arizona Debt Management
Bankruptcy and credit report statistics show that Arizona is one of the
most debt-laden states in the country. Due to this fact, many debt
consolidation companies and consumer credit counseling services have
begun advertising here. Unfortunately, many consumers are not familiar
with what types of debt management are offered and how to differentiate
between reputable companies and those that are merely out to collect
their fees. The purpose of this article is to clarify what forms of
credit card debt consolidation are currently being offered by these
companies, as well as what laws in Arizona are in place to protect
consumers from “bad actors” within the industry.
(Note: the following is for education purposes only and PayingPaul.Com makes no guarantees about the accuracy of anything contained herein. It is not complete and may not be up to date. For legal advice please consult with a lawyer licensed in Arizona.) Debt Consolidation Services in Arizona Generally there are two sorts of debt consolidation companies – credit counseling and debt settlement. Credit counseling is the oldest form of debt consolidation and is often administered by non profit debt companies. If your situation permits, a credit counselor may enroll in you in a debt management plan. That is, they will work on your behalf to reorganize your debt and reduce interest payments, which in turn can help lower your payments and the time it takes to be debt free. It should be noted that although many of these agencies are non-profit, that does not mean their services are free, nor does it ensure that they are legitimate. Debt settlement, also known as debt negotiation, is a process that aims at lowering the amount you actually owe on unsecured bills, not just the interest. It’s widely considered the fastest way to get out of debt other than bankruptcy, but it does not come without its disadvantages. In a settlement program, a client stops paying their creditors and saves money into a separate bank account each month. Once sufficient funds have accumulated, then the company will contact the creditor and negotiate to get them to accept a lump sum, sometimes for significantly less than what the person owes, to completely fulfill the obligation. To speak with a pre-qualified debt advisor, submit a form today! Arizona Consumer Credit Counseling Info To protect Arizona consumers from unscrupulous debt counselors, legislators passed a set of laws regulating the activities of debt management providers. According to Title 6, Chapter 7 of the Arizona Revised State Statutes, a debt management company is defined as “corporation, company, firm, partnership, association or society, as well as a natural person, that for compensation engages in the business of receiving money, or evidences thereof, in this state or from a resident of this state as agent of a debtor for the purpose of distributing the same to his creditors in payment or partial payment of his obligations.” It is within the best interests of a consumer to study the contract provided by the credit counseling organization in hopes of determining how reputable the service is. According to Arizona law, a debt management company must abide by the following provisions: (1) A written contract must be made between the debt management company and the client. The contract must include a list of the client’s creditors at the time of the signing of the contract who are to be included in the credit counseling plan. The contract must also include a provision that allows for the termination of the contract at any time WITHOUT PENALTY (except that the retainer fee is non-refundable). Finally, the fees must be clearly stated in the contract and agreed upon in advance. Fees Debt management companies cannot exceed the following fee limits: a) a retainer fee of $39 b) the lesser of ¾% of the total indebtedness or fifty dollars as a monthly maintenance fee. There are many other requirements and prohibitions for these types of debt management companies, which can be found here: Arizona Debt Statutes. Exemptions It should be noted that Arizona law exempts the following entities: 1. Attorneys at law who principal business is not debt management 2. Nonprofit corporations or nonprofit debt counselor associations that: (a) Are bonded as provided by section 6-704. (b) Are organized to render financial planning service or debt management service to the public. (c) Do not collect any compensation directly or indirectly from debtors. 3. Bill payer services which do not engage in debt counseling or try to alter the payment terms of a client’s debts List of Licensed Agencies Alliance Credit Counseling, Inc. American Consumer Credit Counseling, Inc. American Debt Resources, Inc American Debt Solutions, Inc. American Family Credit Counseling, Inc. 2432 W. Peoria Ave., #1325 Phoenix, AZ 85029-4741 Black Hills Children's Ranch, Inc. DBA: Pioneer Credit & Debt Consolidation Services Cambridge Credit Counseling Corp. CareOne Services, Inc. ClearPoint Financial Solutions, Inc. Consolidated Credit Counseling Services, Inc. Consumer Alliance Processing Corporation Consumer Credit Management, Inc. Consumer Education Services, Inc. Credit Advisors, Inc. CreditGuard of America, Inc. Debt Counseling Corp. Family Credit Counseling Service, Inc. DBA: Family Credit Management Services Family Financial Education Foundation Family Life Services, Inc. DBA: Family Life Credit Services Family Life Services, Inc. DBA: Family Life Credit Services a branch of Family Life Services, Inc. 40 North Swan Road Tucson, AZ 85711 Free In Five, LLC DBA: Free In Five 1920 E. Broadway Rd. Tempe, AZ 85282 Garden State Consumer Credit Counseling, Inc. DBA: Novadebt A Garden State Consumer Credit Counseling Organization Greenpath, Inc. DBA: Greenpath Debt Solutions Greenpath, Inc. a branch of Greenpath, Inc. 401 West Baseline, Suite 206 Tempe, AZ 85283 Help Ministries Incorporated DBA: Debt Free 1148 W. Baseline Road Mesa, AZ 85210 Help Ministries Incorporated DBA: Debt Free a branch of Help Ministries Incorporated 1920 E. Broadway Rd. Tempe, AZ 85282 InCharge Debt Solutions, Inc. DBA: InCharge Debt Solutions Lighthouse Credit Foundation, Inc. Money Management International, Inc. #1 13430 North Black Canyon Hwy., Ste 250 Phoenix, AZ 85029 Money Management International Inc. #1 Money Management International, Inc. #2 DBA: Consumer Credit Counseling Services Southwest 13430 North Black Canyon Hwy., Ste 250 Phoenix, AZ 85029 Money Management International, Inc. #2 DBA: Consumer Credit Counseling Services Southwest a branch of Money Management International, Inc. #2 1215 Gail Gardner Way, Suite B Prescott, AZ 86305-3423 Money Management International, Inc. #2 DBA: Consumer Credit Counseling Services Southwest a branch of Money Management International, Inc. #2 2615 N. 4th Street, Suite 2 Flagstaff, AZ 86004-3700 Money Management International, Inc. #2 DBA: Consumer Credit Counseling Services Southwest a branch of Money Management International, Inc. #2 4732 North Oracle Road, Suite 217 Tucson, AZ 85705 Money Management International, Inc. #2 DBA: Consumer Credit Counseling Services Southwest a branch of Money Management International, Inc. #2 2450 South Fourth Avenue, Suite 201 Yuma, AZ 85364 Money Management International, Inc. #2 DBA: Consumer Credit Counseling Services Southwest a branch of Money Management International, Inc. #2 5515 East Grant Rd, Suite 211 Tucson, AZ 85711 Money Management International, Inc. #2 DBA: Consumer Credit Counseling Services Southwest a branch of Money Management International, Inc. #2 950 W. Elliot Rd., Suite 122 Tempe, AZ 85284 Money Management International, Inc. #2 DBA: Consumer Credit Counseling Services Southwest a branch of Money Management International, Inc. #2 722 East Osborn Road, Suite 210 Phoenix, AZ 85014 Money Management International, Inc. #2 DBA: Consumer Credit Counseling Services Southwest a branch of Money Management International, Inc. #2 1717 E. Bell Rd., #7 Phoenix, AZ 85022 Money Management International, Inc. #2 DBA: Consumer Credit Counseling Services Southwest a branch of Money Management International, Inc. #2 17235 North 75th Ave., Suite C125 Glendale, AZ 85308 Money Management International, Inc. #2 DBA: Consumer Credit Counseling Services Southwest a branch of Money Management International, Inc. #2 1234 S. Power Rd., Suite 100 Mesa, AZ 85206-3740 National Foundation for Debt Management, Inc. North Seattle Community College Foundation DBA: AFS Credit Counseling Robert S. Stearns, Inc. 969 W. Gurley Street Prescott, AZ 86305 Springboard Nonprofit Consumer Credit Management, Inc. Take Charge America, Inc. 20620 North 19th Avenue Phoenix, AZ 85027-3585 Visual Credit Counseling, Inc. 1870 W. Prince Road, #39 Tucson, AZ 85705 Having Problems Follow this form to file a complaint Other Resources Filing Bankruptcy in Arizona Bankruptcy Laws in Arizona Debt Collection in Arizona |
Featured Articles
|
Credit is a useful tool and when handled responsibly allows us to obtain credit cards, loans for homes, cars and other big ticket items. The better we handle our credit, the better the terms that are offered to us from lenders including higher credit lines and lower interest rates.
If, however, a... |
The dismal economy is having an adverse effect on people around the globe with millions facing tremendous amounts of debt. For many, escaping their debt seems like a far off dream but it doesn't have to be! By applying a few simple guidelines to your spending habits, you can begin to reduce credit card... |