Arizona bad credit interest rates are currently set at 10%, but allow consumers to waive this protection and agree to higher interest rates. Payday loans are not available in Arizona while tribal loans within the state are accessible. We researched a few of these Tribal lenders and the interest rates were over 400%. We recommend that you consider credit repair or debt settlement before applying for this service from Tribal lenders.

Consolidating Debt With Bad Credit

The credit card dilemma many consumers end up in is paying the minimum monthly payment for months and sometimes years without the debt amount ever changing. Consumers traditionally apply for debt consolidation to pay off high-interest credit card debt and find it very difficult to convert to pay high interest for a personal loan.

A Personal Loan May Not Be The Solution

 If your current credit card interest is below 20% and your credit score is fair to poor, you may not be offered a better interest rate with a personal loan.  

Discipline Is The Key

If you are in this position with credit card debt and your monthly payment is frozen, chose the credit card with the highest interest rate and start paying it off monthly with a lump sum payment.

We recommend that you set up pre-authorized payments for the minimum payment and a second preset payment for the principal only. Make this payment as high as you possibly can manage. You may have to stop eating out for a few months, but it is worth it to get this debt off your back. After you finish paying off one card, start on the next highest interest rate credit card. Make sure to keep your oldest credit card because credit history makes up a large portion of your credit score. If you plan on getting rid of any of the cards, cancel the newest card.     

No Discipline

If you are unable to control yourself and need to take a loan to pay off your credit cards, you will now have a much higher payment because you are paying off the debt every month.  When you do take out the loan, we recommend that you cancel the credit card you paid off. If you start creating debt on this credit card again, you could end up worse off then when you started.  

Improve Your Credit Score

America Loan Service recommends Novita for credit counseling. With most credit repair services charging from $50 to $99/month, Novita is offering their services at no charge while they develop their platform. There is no guarantee it will always be a free service, so jump in now and take advantage of this offer.   

  1. How to build credit - 7 Ways to build credit
  2. List of per-household income by state - List of per-household income by state acquired July 2018