Arizona state map
A Guide to Payday and Title Loans in

Phoenix, AZ

Payday Lending in Phoenix

The capital city of Arizona attracts visitors with its sunny weather, desert gardens, hiking trails, and cultural attractions. From street art to live music to museums, Phoenix has plenty to offer both residents and tourists.

But alongside the beautiful scenery, Phoenix struggles with high crime rates and poverty. The poverty rate in Phoenix is 20.3%, compared to 17.7% for the state of Arizona, and both figures are higher than the national poverty rate of 12.7%.

Phoenix residents also carry high credit card balances and debts. Mortgage debt is particularly high at an average of $163,218, non-mortgage debt averages $37.487, and the average credit card balance is $4,155. With a significant percentage of Phoenix residents living in poverty, many people in Phoenix will struggle to make enough income to cover their debts and expenses.

Poverty Rate in Phoenix vs. Arizona
Phoenix
Arizona
20.3%
17.7%
Poverty Rate

Payday Loans in Phoenix

People with bad credit in Phoenix or those who lack credit history may not be eligible for traditional loans and other banking services. Instead, many individuals may be tempted by no credit check loans in Phoenix that carry predatory high interest rates.

Debt.org defines predatory lending as “any lending practice that imposes unfair or abusive loan terms on a borrower. It is also any practice that convinces a borrower to accept unfair terms through deceptive, coercive, exploitative or unscrupulous actions for a loan that a borrower doesn’t need, doesn’t want or can’t afford.” Payday loans and title loans are two different types of predatory lending practices.

Payday loans in Arizona became illegal in 2010, and interest rates are capped at 36% by law, but many predatory lenders have found ways to circumvent these restrictions. “Flex loans”, which are often called “consumer access line of credit” loans, are loans that a borrower pays back in installments. Here’s how Arizona’s flex loans work:

  • A borrower is offered a loan with a low interest rate
  • Lenders impose fees for everything from processing transactions to maintaining account information
  • These combined fees add up to triple digit annual interest rates
  • Borrowers stay in debt as long as they can meet the minimum payments

Many lenders in Arizona advertise these as quick-fix loans that provide a responsible way to cover emergency expenses. However, the fees associated with flex loans in Arizona make it difficult for borrowers to pay back what they owe. Fees can be tacked on to the loan for any number of services, including fees for sending billing statements and maintaining a borrower’s account. These fees can seem like a needed expense in an emergency, but they quickly add up to trap borrowers in ongoing debt.

Why Should You Avoid Payday Lenders in Phoenix?

Arizona was the 17th state to prohibit payday loans with annual interest rates higher than 36%. Before 2010, a borrower would end up paying around 400% interest annually on a loan carried for a year. Even though payday loans in Phoenix are no longer allowed by law, predatory lenders still exist. Since the vote to end payday lending, more title lending establishments have popped up in Arizona. These loans use the title of the borrower’s car as collateral, and can be just as difficult to overcome as payday loans.

Individuals with bad credit in Phoenix need to be cautious when borrowing. It’s important to read the fine print and understand the fees associated with a loan. Unfortunately, for those struggling to make ends meet, the high fees associated with a consumer access line of credit can make it impossible to get out of debt.

2016 Credit and Debt Statistics for Phoenix vs. Arizona vs. U.S.

 

Ave. Number of Credit Cards:

Ave. Balances on Credit Cards:

Ave. Number of Retail Cards:

 

Ave. Non-Mortgage Debt:

Ave. Mortgage Debt:

Ave. Retail Debt:

90 Plus Days Past Due Delinquency:

 

Phoenix

2.08

$4,155

1.05

 

$37,487

$163,218

$634

16%

Arizona

1.68

$3,194

1.02

 

$29,460

$93,144

$771

16%

United States

2.35

$5,551

1.51

 

$39,216

$196,014

$1,081

32%

Local Resources to Help Phoenix Residents Avoid Predatory Lenders

When finances are strained, it can be hard to cover everyday expenses like food and housing. Sometimes, we face emergencies that can make it even more difficult to make ends meet. These include unexpected illness and disability, accidents, addiction, and car or home repairs.

At these times, many individuals will need financial assistance to help with the unexpected costs. Even though Arizona recently raised the minimum wage to $10.50 per hour, consumer spending in Phoenix is higher than the rest of the nation, and many individuals will still struggle to cover even their day-to-day expenses.

The Phoenix-Mesa-Scottsdale Metro Area leads the nation in unbanked households, with 16.3% of households lacking someone with a bank account. When unbanked individuals need loans to cover their expenses, they are left vulnerable to predatory lending services. But Phoenix residents should be aware that there are other options available in times of need.

Consumer Spending in Phoenix vs. Arizona vs. U.S.

 

Total per Household

Apparel & Services

Dining Out

Food Consumed at Home

Entertainment/Recreation

Health Care

Housing

Life and Other Insurance

Pensions and Social Security

Transportation

Phoenix

$61,230

$1,969

$3,046

$4,534

$2,705

$4,671

$19,118

$340

$6,442

$7,271

Arizona

$60,607

$1,851

$2,878

$4,608

$2,665

$4,828

$18,808

$362

$6,114

$7,484

United States

$57,311

$1,803

$3,154

$4,049

$2,913

$4,612

$18,886

$322

$6,509

$9,049

Food Assistance Resources in Phoenix

14.3% of Maricopa County residents are at risk of becoming hungry. Only about 68% of these individuals are eligible for Arizona’s Supplemental Nutrition Assistance Program (SNAP), a food stamp program that helps low-income families with purchasing food. To apply for assistance, click here.

Some families will not be eligible for SNAP, and others will still struggle even with government assistance. Fortunately, there are also many food banks, soup kitchens, churches, and non-profit organizations that provide meal assistance to families who are unable to cover the cost of food.

The following resources can help:

Association of Arizona Food Banksprovides help locating a food bank, applying for SNAP, and more

St. Mary’s Food Bank

  • Multiple locations
  • Phone: (602) 242-FOOD

Paradise Valley Emergency Food Bank

  • Address: 10862 N 32nd Street, Phoenix, AZ 85028
  • Phone: (602) 867-9228

Joshua Tree Feeding Program

  • Address: 214 E Willetta St, Phoenix, AZ 85004
  • Phone: (602) 264-0223

Salvation Army Phoenix

  • Address: 2707 E Van Buren St, Phoenix, AZ 85034
  • Phone: (602) 267-4100

 

Medical Debt in Maricopa County vs. Arizona
Maricopa County
Arizona
11.0%
11.0%
% Uninsured
21.0%
20.0%
% with Medical Debt in Collections
$936
$864
Median $ Medical Debt in Collections

Healthcare Resources in Phoenix

20% of Phoenix residents are uninsured, leaving a significant number of families vulnerable to high costs without assistance when they face health-related emergencies. This figure is much higher than the national rate of 8.8%. Arizona is also considered one of the worst states with regard to access to quality healthcare for children.

21% of Maricopa County residents have medical debt in collections. Those who have received calls from collection agencies may be tempted to seek a consumer access line of credit in Phoenix. Fortunately, there are other options available for people who can’t afford healthcare.

Arizona is one of 33 states that have adopted expanded Medicaid. Yet Arizona still has 773,000 uninsured residents. 42% of those who are uninsured are eligible for Medicaid, according to a 2016 Kaiser Family Foundation report. If you are currently uninsured, visit Arizona Health Care Cost Containment System to find out if you are eligible for healthcare assistance. You can also visit one of the free or sliding-scale health clinics below:

Mission of Mercy Free Clinic

  • Address: 360 E. Coronado Rd, Phoenix, AZ 85004
  • Phone: (602) 861-2233

Phoenix Allies for Community Health

  • Address: 2903 W Clarendon Ave, Phoenix, AZ 85017
  • Phone: (623) 455-6470

Mountain Park Health Center

  • Multiple locations

Life Choices Women’s Clinic

  • Multiple locations

Rent Assistance in Phoenix

Housing costs are on the rise, and Phoenix residents spend even more on housing than the rest of the nation. Ideally, people should spend between 20-30% of their income on housing, but the median rent in Phoenix costs residents 31.9% of their household income.

The median monthly cost for housing in Phoenix with a mortgage is $1,348, and households without a mortgage still pay a median of $424 monthly. The median cost of rent in Phoenix is $914.

Nearly 15% of Phoenix residents make less than $15,000 per year, making it difficult for many families to cover their housing costs. Those facing eviction or otherwise in need of emergency rent assistance can apply for assistance here. The services and programs below may also be helpful:

The Society of St. Vincent de Paul Arizonaprovides one-time rent, mortgage, or utility assistance

The Primavera Foundationin addition to offering rent assistance to families undergoing financial hardship, this foundation also provides financial resources and education

Catholic Charities of Arizonaoffers affordable housing options to families in need

Monthly Housing Costs as a Percentage of Household Income in Phoenix
  • Less than $20,000:15.9%
  • $20,000 to $34,999:16.4%
  • $35,000 to $49,999:14.7%
  • $50,000 to $74,999:18.0%
  • $75,000 or more:31.2%
Phoenix vs. Arizona Median Housing Values and Monthly Costs

 

Median Housing Value

% of Housing Units with a Mortgage

Median Monthly Cost (w/ mortgage)

Median Monthly Cost (w/o mortgage)

Median Rent

Phoenix

$178,200

72.7%

$1,348

$424

$914

Arizona

$176,900

64.7%

$1,332

$385

$937

Works Cited