At this rate, it will take many months if not years to pay down debt from your credit card, and that is if you stop using it. When you only pay the minimum monthly payment on your credit card, you might think that you are paying off part of the balance when in fact you are only recycling your debt. Minimum monthly payments are automatically calculated by the bank they increase when your balance increases but they only comprise interest. Credit cards have some of the highest interest rates, usually around 18% to 20%. Credit card minimum payments lead to a debt spiralīanks and credit card companies make money from interest. Once they get started using their credit card balance this way, it is not easy to stop because of the minimum payments trap. Inflation has eaten away at people’s income and salaries are not following the inflation rate. They usually use their credit cards to pay for necessities like gas and groceries when they run out of money at the end of the month. Most people in Arizona don’t use their credit cards for luxurious living, clothes shopping, or fine dining. With the increased cost of living, many households struggle to pay for their necessities. This is how in the end they owe consumer debt which they cannot manage to repay, and in the end, they may need to face debt collectors. When people struggle to pay bills and necessities on their income, it is common to use their credit cards to finance their expenses. What Causes Credit Card Debt?Īrizona residents often find it hard to make ends meet at the end of the month. The calculator also indicates how much interest you will pay to your lenders. Use the interactive calculator here to see how long it will take you to pay off your credit cards, student loans, and medical debt. According to the Bureau of Labor Statistics, average wages in Arizona were $55,170, compared with the national average of $58,260.Īll of these factors combine to make it hard to get out of debt in Arizona. Housing in Arizona is more costly than in other states, with an index of 107.7.ĭespite the higher cost of living, personal income is lower in Arizona than the national average. It currently ranks as the 18th most expensive state to live in, and the cost of living index is 103.2. In addition to rising debt, Arizona has a slightly higher cost of living than other states. Inflation, housing costs, and gas prices are likely to drive debt even higher in the following months. In contrast, the median household debt across the nation was $8,425 in the first quarter of 2022. The average household in Phoenix, Arizona, carries $10,502 in household debt. Do Residents of Arizona Have a Lot of Debt? Like other states around the country, those who live in Arizona often need help in the form of debt relief options. Rising housing costs, inflation, and increasing gas prices haven’t helped matters. Individuals and families often struggle with debt, as Arizona debt statistics indicate. While temperatures vary across the state, most regions offer moderate to hot temperatures and little precipitation.Īrizona has a lot to offer its residents, but it’s not the cheapest place to live. The state is known for its nearly year-round sun and low humidity. Many people are attracted to Arizona’s warm weather. You’ll find people from all walks of life who are proud to call Arizona their home. The state is known for its beautiful parks and monuments, breathtaking scenery, and premier spas-in fact, Arizona is home to three of the world’s best destination spas.Īside from numerous options for hiking, bicycling, and relaxing, the state also boasts several busy cities, including Phoenix and Tucson. Get The Help You Need to Get Rid of Debt in ArizonaĪrizona has long been associated with the Grand Canyon, one of the Seven Natural Wonders of the World.
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