Arkansas Debt Settlement

Arkansas is home to 3,017,804 residents and ranks 33rd in population within the United States while covering an area of 53,179 square miles that places it 29th in terms of geographic size.

This results in a population density of 56.4 residents per square mile that ranks the state 34th in the nation. Arkansas’ diverse geography includes the Ouachita Mountains, the dense forests of the Arkansas Timberlands, and the lowlands of the Arkansas Delta.

Arkansas’ capital and largest city is Little Rock, which is considered a hub for transportation, culture and business. The Arkansas economy is based on aircraft, agriculture, steel, tourism and the service industry. Although only approximately 3% of the Arkansas population is employed within the agricultural sector, Arkansas ranks 13th in the nation in the total value of agricultural products sold each year.

Important agricultural outputs include cotton, soybean, rice and poultry, eggs, cattle, hogs and milk. The state is also home to no fewer than six Fortune 500 companies – including Walmart, Tyson Foods, J.B. Hunt, Dillard’s Department Stores, Murphy USA and Windstream.

Important industrial outputs include food processing, electrical equipment, machinery, paper products and fabricated metal products. In terms of natural resources, Arkansas is home to numerous natural gas, oil, crushed stone, bromine and vanadium mines.

According to the St. Louis Fed, Total Gross State Product for Arkansas in 2019 came in at $133.2 billion, ranking the state 35th in the nation. Tourism, services and the retail sector contributed significantly to this figure, with tourism benefiting from a network of fifty-two state parks, as well as seven National Park Service properties. In fact, Arkansas’ official state nickname remains “The Natural State,” as a result of a tourism advertising campaign that was initiated over forty years ago!

Famous for its two-term governor and eventual President, Arkansas is now home to The William Jefferson Clinton Presidential Library, which, along with the nearby River Market District, attract visitors to the Little Falls area. Meantime, numerous annual festivals such as the King Biscuit Blues Festival and Ozark Folk Festival draw visitors to other parts of the state.

Walmart, the world’s largest retailer, is headquartered in Bentonville, and provides Arkansas with a strong presence in retail. With forestry remaining strong in the Arkansas Timberlands, the state ranks fourth in the nation in softwood lumber production, while Arkansas’ agricultural strength is reflected by ranking among the top three producers nationally in rice, turkeys, broiler chickens, cotton and catfish.

Nonetheless, Arkansas’ 2018 median household income level of $47,062 checked in 24% lower than the national median household income level of $61,937.

Arkansas Economic and Debt Statistics

According to the Bureau of Labor Statistics, Arkansas’ unemployment rate stood at 3.5% as of February 2020, right in line with the national average of 3.5%. Arkansas residents rank 37th nationally in the amount of household credit card debt held, checking in at an average level of $6,747, 27.7% less than the national average of indebted households of $9,333. In terms of FICO scores, compared with the 2019 nationwide average FICO score of 703, the typical Arkansas resident’s 2019 FICO score of 683 is notably lower, and ranks the state 43rd nationwide.

Arizona Economic and Debt Statistics

Unemployment Rate

1 %

Average Credit Card Debt

$ 1

Home Ownership Rate

1 %

Average Student Loan Debt

$ 1

According to the St. Louis Fed, the 2019 Arkansas home ownership rate checked in at 65.3%, slightly higher than the national rate of 64.8%. Meantime, a recent Experian report shows average mortgage debt level of $128,842, representing an increase of 2.1% compared to 2018, and ranking the state 45th in the nation. Meantime, the median sales price of a home in Arkansas during 2019 was $147,675. Regarding student loans, data compiled in 2019 by Experian indicates that average student loan debt for Arkansas borrowers is $32,203, 8.9% lower than the national average of $35,359, 6.1% higher than in 2018 and 30.1% higher than in 2014.

Arkansas Residents and Debt Settlement

If you are a resident of Arkansas and are currently burdened by high levels of unsecured debt – including credit card accounts, private student loans, unpaid medical bills and personal loans – the process of pursuing debt settlement may make sense for you.

Debt settlement occurs when a debtor successfully negotiates a payoff amount for less than the total balance owed on a debt. This lower amount is agreed to by the creditor or collection agency and is fully documented in writing. Ideally, this lower negotiated amount is paid off in one lump sum, but it can be paid off over time. Though creditors are under no legal obligation to accept debt settlement offers, negotiating and paying lower amounts to settle debts is far more common than many people realize.

Arkansas Consumer Debt Laws

Credit Card companies and other creditors are permitted to contact Arkansas residents directly regarding debts, particularly in a situation involving delinquent payments. However, debt collection agencies are required to comply with the the Federal Fair Debt Collection Practices Act (FDCPA), and are therefore prohibited from taking certain actions. Under the FDCPA, collection agencies are prohibited from informing employers about a debt or attempting to collect a fee in excess of any debt owed.

Debt collection agencies are also prohibited from communicating in a manner that simulates a judicial process or gives the appearance of a governmental action. Additionally, debt collection agencies are prohibited from contacting debtors or debtor family members at unusual hours or with a frequency that may be reasonably construed under the law as harassment or abuse.

Arkansas supplements the FDCPA with a consumer protection statute that applies to collection agencies – but not original creditors or lawyers unaffiliated with collection agencies. The statute prohibits misleading acts that simulate the legal process, any publication of a “deadbeat” list, and the use of profane language in attempting to collect on a debt. The statute also stipulates that any debt collector within the state of Arkansas must be licensed to collect debt in the state.

Arkansas Statute of Limitations on Debt Collection

For any time period, the clock begins ticking from the “date of default,” which is typically thirty days after the last payment was actually made. When debts remain unpaid prior to the statute time period elapsing in full, creditors maintain legal right to sue you for non-payment and are permitted to engage debt collection agencies who can make persistent attempts at collection – provided they remain within the bounds of the Arkansas debt collection statute and the FDCPA.

Debt Settlement - Do It Yourself?

Getting out of debt is never an easy process. If debt settlement is the right avenue for you to pursue, be honest with yourself. Decide whether you possess the background, strength and fortitude to negotiate directly with creditors yourself – or whether engaging the services of an experienced and reputable debt settlement company will serve your needs best.

Remember, the goal is to save the greatest amount of money and time while minimizing any ensuing damage to your credit score and profile. A reputable debt settlement company will provide a realistic estimate and time frame for making offers to your creditors that can ultimately result in settlements that save you significant amounts of money, time, and aggravation.

Contact us here at United Settlement, where our experienced credit counselors possess relationships with the major credit card lenders and a broad understanding of the debt marketplace. We can help you navigate these waters successfully.

Debt Resources & Additional Reading

Arkansas Debt Settlement FAQs

What is the statute of limitations for debt collection in Arkansas?

When sufficient time passes in a situation in which consumer debts have gone unpaid, a debt collector can lose the legal right to sue for non-payment. In Arkansas, the statute of limitations on debt collection is three years for open credit card accounts, three years for oral contracts, five years for written contracts, and three years for promissory notes. For any time period, the clock begins ticking from the “date of default,” which is typically thirty days after the last payment was actually made. When debts remain unpaid prior to the statute time period elapsing in full, creditors maintain legal right to sue you for non-payment and are permitted to engage debt collection agencies who can make persistent attempts at collection – provided they remain within the bounds of the Arkansas debt collection statute and the Fair Debt Collection Practices Act.

Does United Settlement offer Arkansas debt relief programs?

Yes, if you are a resident of Arkansas and currently are burdened by high levels of unsecured debt – including credit card accounts, personal loans, unpaid medical bills and private student loans, United Settlement can assist you with a variety of debt relief programs that include debt settlement and debt consolidation. Debt settlement occurs when a debtor successfully negotiates a payoff amount for less than the total balance owed on a debt. Debt consolidation involves combining a variety of debts from different creditors into one single debt consolidation loan, simplifying the repayment process while resulting in a lower blended interest rate. Contact us here at United Settlement, where our experienced credit counselors possess relationships with the major credit card lenders and a broad understanding of the debt marketplace. We can help you achieve the peace of mind that comes with living a debt-free lifestyle.

What is the statute of limitations for credit card debt in Arkansas?

In Arkansas, the statute of limitations on debt collection for open credit card accounts is three years. When debts remain unpaid prior to the statute time period elapsing in full, creditors maintain the legal right to sue for non-payment and are permitted to engage debt collection agencies who can make persistent attempts at collection.

What happens if you ignore a debt collector in Arkansas?

If you ignore a debt collector in Arkansas, the debt collector may sue for the amount owed, and if you ignore a court summons, this will likely result in a judgment made against you. At this point, wage garnishment becomes a possibility. In Arkansas, a creditor can garnish up to 25% of a delinquent debtor’s disposable income – which is defined as the amount of money remaining after legally mandated deductions from a paycheck – or 30 times the Federal minimum wage, whichever is less.