Life in Phoenix can be enjoyable for many people, and financial security plays a major role in how comfortable you are. While financial security is attained by many people in this beautiful city, others are not so fortunate to be relatively free of money woes. Despite their hard work, debt balances may have accumulated to high levels. This may happen because of financial irresponsibility, but it also can happen when life deals you a series of blows. For example, your debt level may have climbed because of a car accident, a serious illness or another issue. If you are included in this group of people struggling with high debt balances, you may be wondering what you can do to pay down debt quickly. While there are several debt relief options that you can pursue, debt consolidation is a great solution to consider.

Debt Consolidation Loans in Phoenix AZ

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A Look at Financial Hardship in Phoenix

Phoenix is a large, bustling city that is home to more than 1.5 million residents, based on U.S. Census Bureau data. For residents in Phoenix who own their own home, the average mortgage payment is $1,349 per month. Renters pay on average $884 per month. The per capita income, on the other hand, is less than $24,300. This can create a very tight financial situation for many residents, and this is particularly true when the individual also has to pay high debt bills each month. More than one in five residents in Phoenix lives in poverty. Thousands of others live only right above the poverty line. Even those who have a comfortable income may still have a tight budget because of a serious debt situation. Debt consolidation may be the right option to consider to alleviate the stress you are feeling.

How Consolidation Helps

Before you take any action to improve your financial situation, you must first understand what debt consolidation is. Debt consolidation is the process of refinancing your current debts into a single loan. The new loan is typically a fixed term loan, and it generally has a much lower interest rate than your current debts have. With these two criteria in place, you can enjoy numerous benefits. This includes lower overall debt payments each month, faster debt reduction and easier debt management. Finding the right loan to use for debt consolidation is critical if you want to enjoy the best outcome possible. You have many options to consider, such as an unsecured bank installment loan, a home equity mortgage and even a refinance loan on your car if your vehicle has a lot of equity in it. Because consolidation generally requires you to open a new account in most cases, this is not a feasible debt relief solution for individuals who have bad credit. If your debt situation is so serious that your credit rating has been negatively affected by it, you may need to seek a more significant form of debt relief. Some options include settlement and bankruptcy. However, your credit rating may be further impacted by these two options, so consolidation should be considered first if possible.

Laws Regarding Debt Relief in Phoenix

Consumers in Phoenix may be wondering what the debt relief laws are in Phoenix. The state of Arizona has issued many laws to protect consumers like you from predatory lending practices as well as from harassment from creditors who you may owe money to. In addition, laws are established regarding bankruptcy, foreclosure, repossession and more. If you are dealing with a significant debt situation, you can contact your attorney to discuss how the law can protect you while you navigate through this rough time in your life.

Through a debt consolidation loan, you can re-establish your debt on an account that produces lower monthly debts and that makes it easier to pay down the total debt balance. If you are challenged by a tight financial situation because of high debt balances, it is wise to review consolidation loan options today as a first step. Through your effort at debt consolidation today, you may find that your financial situation slowly begins to improve as you regain control of your budget. This can drastically improve your stress level and quality of life, and it all starts by exploring options for debt consolidation loans today.