Complaints about debt collection calls on the rise. Here’s what you can do.
In Arizona, nearly 2,000 people filed complaints last year. 12News is sharing how a Valley organization is working to get Arizonans out of debt.
PHOENIX — Consumer complaints about debt collection calls have surged by 150% nationally, according to recent data from the Federal Trade Commission.
Here in Arizona, nearly 2,000 people filed complaints last year.
12News is sharing how a Valley organization is working to get Arizonans out of debt.
Yev Vayner found himself with $30,000 in credit card debt after a divorce significantly reduced his household income.
“You don’t just automatically stop buying the same amount of stuff that you both have bought for the last ten years, so now it’s like the food is going back because you bought too much,” he said.
Vayner said in the divorce, he got his kids 50% of the time, but it took a while to adjust.
“You can’t really buy 50% of the food, because you’re still eating… so it took a little while to get in the groove of things of doing it on my own,” he said. “That wears on the credit cards a little bit.”
Eventually, he reached out to a nonprofit financial counseling agency called Money Management International.
“…help people get out of debt, help people fix their credit, help people stay in their house,” said Jim Triggs, CEO. “There’s over $1.2 trillion in credit card debt right now, and delinquencies are rising, which means charge-offs are rising, which means the collection calls are definitely growing.”
Triggs shared the biggest contributing factors.
“The root causes are inflation, the pandemic, as you know, caused a lot of financial fallout,” he said. “Soon after, when inflation started, housing picked up, car payments, interest rates started rising, consumers started seeing more trouble with debt.”
Triggs said for consumers carrying unsecured credit card debt–25% or higher– it’s hard to dig yourself out of that hole.
Recently, the FTC reported a 150% surge in debt collection calls. That’s why Trigg says it’s important to take steps to protect yourself from scams that are circulating.
“Number one, ensure they’re legitimate and number two, ask them to prove you owe the debt,” he said. “They have to send something to you in writing if you ask for it.”
If you’re trying to eliminate debt, he said, you have to come up with a plan.
“Figure out how much you have coming in and how much can you pay toward your debt, and if you’re not able to pay extra toward your debt, that’s when you might be in some trouble,” said Trigg.
Nonprofits like MMI can help.
“We’ll help you free of charge, understand your options in order to get out of debt,” he said.
MMI helped Vayner work with his creditors to bring his interest rates down to an average of 5%, putting him on track to be debt-free by mid-2027.
“They just made the process so much easier… You give them all the information and then they just come back with–here’s what we got you, done,” said Vayner.
If you have any money-saving topics you would like us to look into, email us at money@12news.com.
Watch 12News+ for free
You can now watch 12News content anytime, anywhere, thanks to the 12News+ app!
The free 12News+ app from 12News lets users stream live events — including daily newscasts like “Today in AZ” and “12 News” and our daily lifestyle program, “Arizona Midday”—on Roku and Amazon Fire TV.
12News+ showcases live video throughout the day for breaking news, local news, weather and even an occasional moment of Zen showcasing breathtaking sights from across Arizona.
Users can also watch on-demand videos of top stories, local politics, I-Team investigations, Arizona-specific features and vintage videos from the 12News archives.
Roku: Add the channel from the Roku store or by searching for “12 News KPNX.”
Amazon Fire TV: Search for “12 News KPNX” to find the free 12News+ app to add to your account, or have the 12News+ app delivered directly to your Amazon Fire TV through Amazon.com or the Amazon app.
Money Saving Monday
Catch up on the latest Money Saving Monday videos here. If you have any Money Saving Monday ideas, be sure to email us at money@12news.com.
