Colorado Debt Relief: Making Colorado Residents Debt Free
17 MIN READ
Published March 31, 2023 | Updated May 08, 2023
In a Nutshell
Colorado has a population of 5.8 million people, with a high consumer debt of $147,465, the highest in the U.S. If you're struggling with debt in Colorado, then you’re probably not alone. The good news is, Colorado residents can find debt relief solutions in a number of ways.
TurboDebt offers debt relief programs in Colorado. Our company has helped many Coloradans get out of debt by offering personalized debt relief options and services. Read on to learn more about the services available to get you out of debt. Some of the most popular options include consumer credit counseling, debt settlement, and debt consolidation, to name a few.
Introduction: Colorado's Economic Situation
Colorado is known for its breathtaking natural landscapes, ski havens across the Rocky Mountains, and diverse economy. Various industries, including agriculture, energy, technology, and tourism, drive Colorado's economy.
Despite its strong economic foundation, many residents of Colorado need help with debt. Whether it's credit card debt, medical bills, or student loans, debt can quickly become overwhelming and impact nearly every aspect of your life.
Fortunately, the state of Colorado has various debt relief options, including debt consolidation, debt settlement, and bankruptcy. Understanding these options can help Coloradans struggling with debt get back on track financially.
How Do Debt Relief Programs Work In Colorado
If you have a lot of debt, you may be wondering what your options are to get out of debt. Many debt relief programs can help you pay off your debt and stop borrowing money. However, not all of them are created equal. Some programs will give you a quick fix, while others will help you get out of debt for good.
Debt relief programs in Colorado can help you by negotiating with lenders, asking for reduced minimum payments, or securing lower interest rates on your behalf.
Colorado Debt and finance statistics
Average Consumer Debt
The average household in Colorado carries over $147,000 in debt. This includes mortgage, auto, and credit card balances and other types of debt like student loans, personal loans, and medical bills.
Credit Card Debt
Coloradans carry an average credit card debt of $5,915. This number is among the highest in the country, with a handful of states topping $6,000.
Auto Loan Debt
Colorado residents are taking out more car loans than ever before. In the past year, the average price for an auto loan in the U.S. topped $20,000 for the first time in history. The average auto loan debt in Colorado was $21,593 in 2021.
Western states like Colorado are home to some of the highest mortgage debt per household. The average Colorado resident owed $319,091 on their home in 2022, well above the national average.
Student Loan Debt
In Colorado, student loan debt is the most common form of consumer debt. The average federal student loan debt for Coloradans is $37,135. In fact, more than half (55%) of Coloradans with student loan debt are paying back $20,000 or more.
Although total bankruptcy cases have declined steadily in the past decade, Colorado residents still pursue this option. The state saw 5,193 cases filed in 2022 alone. Most people pursue bankruptcy as a form of debt relief to write off some or all of their debts.
While Bankruptcy can help you eliminate debt, it has severe consequences in Colorado. Filing for bankruptcy could hurt your credit score, and its effect will stay on your credit report for up to 10 years, depending on whether you file for Chapter 13 or Chapter 7 bankruptcy.
Average Income and Employment
In Colorado, the average household has a median income of $80,184, over $10,000 more than the national average. Colorado's unemployment rate also sits lower than the national average at 2.8% as of March 2023.
Coloradans claim an average credit score of 730, which is 16 points higher than the national average of 714. It's good news that many residents of the Centennial State boast good to excellent credit, making it easier to secure loans at lower interest rates and giving many individuals a positive credit history.
According to the Insurance Information Institute, there were 10,671 reports of identity theft in Colorado in 2022. The number of identity thefts per capita has risen steadily in the past few years and is expected to continue rising as more consumers and businesses use online resources to store and access data. Protecting your data is essential to save money from loss due to fraud and keep your identity safe.
Banking and Tax Info
Of the over 5 million residents in Colorado, over 5% are considered unbanked according to the FDIC. This means that over 250,000 residents don’t use a bank account to save and access their money but instead access funds through alternative sources like paycheck advances. These methods can often cost individuals an exorbitant amount in fees, dragging you into a cycle that leads to debt.
TurboDebt Offers Solutions for Colorado Debt Relief
At TurboDebt, we're passionate about helping people who are struggling with debt. In 2022, we managed to assist 2,253 clients in Colorado. Of these, we enrolled 799 clients into a debt relief program, saving them an average of about 50% before fees. This led to a total debt enrollment of $19,330,671, with an average enrolled debt of $24,194 per client.
Top Types of Debt Relief Options in Colorado
Avoid debt collection and get your finances back on track after dealing with the following types of debt:
Credit Card Debt
Credit card debt can be caused by shopping sprees and vacations, or even in the midst of an inflationary economy, purchasing essential items.
Making late payments or even paying only the minimum each month means you'll accrue more fees with each billing cycle. With the high interest rates charged by most credit card companies, you're likely to rack up debt paying more than you originally spent.
If you're facing this type of situation and want help getting out from under your credit card debt, TurboDebt can help. We provide options like debt settlement that allow us to work with creditors on behalf of our clients to lower monthly payments and interest rates so they can get back to building wealth.
Debt acquired during a divorce can be difficult to manage. In Colorado, the average divorce costs nearly $14,000, which can be financially devastating to your finances. Even if your former spouse has agreed to pay off the debt, it can still affect your credit score until it's paid off.
At TurboDebt, we can help you get relief from this kind of debt by making a plan to eliminate your outstanding balances after a divorce so you can restart your life debt-free.
Business debt is a major issue for some small businesses in Colorado, and it's not uncommon for these companies to be forced to close their doors. While this is an unfortunate situation, there is a way out of this mess. With TurboDebt's help, business owners can get relief from their business debts and focus on growing their businesses in the future.
Medical debt is the leading cause of personal bankruptcy in Colorado, with almost 66% of bankruptcies linked to medical debt. In fact, the average medical debt for a household is $18,000 and rising.
TurboDebt wants to help you get relief from your medical bills without filing for bankruptcy.
Homeowner debt is a significant source of financial strain for many Colorado residents. Homeowners who can't make their mortgage payments face foreclosure on their homes, making this a debt you can't afford to overlook.
If you're facing a foreclosure and need help paying off your mortgage debt, consider speaking with one of our debt relief professionals to find a solution that helps you retake control of your finances.
Outside of our own program, homeowner debt relief can help you do the following:
- Enroll in a new mortgage with a fixed rate and term that better fits your budget.
- Reduce the principal balance of your mortgage through principal reduction or loan modification.
- Pay off your loans early without penalties, which will save you money in interest charges.
Retirement debt is one of the most common debt types for people enrolling in our programs. This type of debt includes things like 401(k) loans, IRA withdrawals, and unpaid taxes on employee retirement plans. It can also come from unexpected expenses that strain a fixed income.
We can help you get relief from this type of debt by negotiating with creditors and setting up a repayment plan to pay off your debts without accruing additional interest or penalties.
Options for Debt Relief Programs in Colorado
There are many ways to deal with debt relief from Colorado Springs to Centennial and Denver to Boulder, including:
Debt Management Programs
Debt management programs are an option for people with a lot of credit card debt. This solution can help you get out of debt faster, lower your payments, and make paying off your credit cards easier. Private businesses, credit unions and banks, non-profit organizations, and some creditors offer debt management programs.
A debt management plan lets you pay creditors in a lump sum or monthly installments. They also include counseling services so you can learn effective money management skills.
Debt Consolidation Loans
If you're suffering from various credit card or other debts that are making it hard to pay the bills, you can get help through a debt consolidation loan. A debt consolidation loan combines your current debts into a single large loan where you make one monthly payment at a lower interest rate than you would pay toward multiple accounts.
You can use a debt consolidation loan to pay off high-interest credit cards, medical bills, and student loans. The process is simple: You apply for a new loan with a new lender and use the money to pay off your old debts. A debt consolidation loan can be an effective option if:
- You have multiple unsecured debts (like credit cards) that you need help managing.
- Your interest rates are high.
- You're having trouble making timely payments on your unsecured debts
Debt settlement is another option that can help you make a single payment at a reduced cost. When you settle your debt, a settlement company negotiates with creditors or debt collectors on your behalf to accept less than the balance owed.
In some cases, debt settlement companies can reduce the debt amount by 50% or more. When you deal with the original creditor during debt negotiations, you’re likely to get a reasonable payment, unlike debt collectors who may charge a higher interest for their own gain.
Credit counseling is a good first step for anyone who is struggling to pay their bills. Credit counselors are trained in debt management, budgeting, and other financial management skills. They can help you create a plan to get out of debt and stay out of debt.
Credit counseling agencies can also help you if you need to catch up on your payments or are facing foreclosure on your home or car. Our experts at TurboDebt can help you determine the best way to manage your finances and provide resources to help.
If you are struggling with credit card debt in Colorado, filing for bankruptcy is often a final option to rid yourself of debts and start over with a clean slate. For instance, Chapter 7 or Chapter 13 bankruptcy can help you liquidate your assets or reorganize your debts.
Filing for bankruptcy can give you the relief you need to start over. However, it also has many drawbacks you should consider before pursuing this option. In many cases, bankruptcy affects your credit for nearly a decade, making it hard to access lines of credit or loans for up to 10 years.
Bankruptcy laws vary from state to state, so it is important to approach a law firm and talk with an attorney about what options are available in Colorado before filing for bankruptcy.
When you can't pay back what you owe, you may be eligible for debt forgiveness. This differs from bankruptcy, where your debts will still be on your credit report but no longer have to be paid back.
If you qualify for a debt forgiveness program, you'll receive a complete cancellation of all or some of your debts. Many of these programs are offered through the federal government at the national and state levels. The IRS also offers several programs that eliminate certain types of tax debt, including innocent spouse relief and partial payment abatement.
Debt and Financial Hardship Resources
If you're having trouble paying your bills, you may be suffering from debt and financial hardship. While it is normal to have some level of debt, many things can be done to help reduce the amount of money you owe each month.
The following is a list of resources that may help if you are struggling to meet your immediate needs:
Temporary Assistance Programs
The state's Temporary Assistance for Needy Families (TANF) program can assist with paying rent, utility bills, and other essential needs. It also offers some funds for job training or education.
The Colorado Department of Human Services has a list of organizations offering financial help through grants and loans to those in need. These organizations can offer assistance with rent, utility bills, and other expenses.
State Health and Human Services
Colorado's Department of Health and Human Services provides a wide range of services for those who need them. This includes reduced medical care through Medicaid and Medicare, and other programs to serve those in need.
Child care is an essential part of the lives of many families, allowing parents to work or attend school. In Colorado, there are several different types of childcare available. The Colorado Department of Human Services (CDHS) provides a list of licensed childcare providers on its website. You can search for licensed providers by county or zip code.
The CDHS also has information about financial assistance programs that may help you pay for childcare costs. The site also provides links to other resources, including information about licensed providers willing to offer discounts for low-income families and financial assistance programs available through the state government and local communities.
Shelters for the Homeless
Homeless shelters provide food, shelter, and clothing to people with nowhere else to go. Shelters keep different requirements for admission, including whether or not they allow pets and how long you're able to stay.
Some shelters also offer counseling or job placement service to help homeless Coloradans get a fresh start. Please reach out to your local government office or human services department to find shelters in your area and learn more about their admission requirements.
Free Transportation Services
Several organizations in Colorado provide free or low-cost transportation services for individuals experiencing financial hardship. Here are a few resources to consider:
1. Denver Regional Mobility and Access Council (DRMAC): DRMAC offers a wide range of transportation services for individuals with disabilities, older adults, and low-income individuals. Services include Access-a-Ride, which provides door-to-door transportation for individuals who cannot use fixed-route public transportation, and Call-n-Ride, which offers on-demand transportation in certain areas.
2. Aging and Disability Resources for Colorado (ADRC): ADRC provides information and assistance to older adults, individuals with disabilities, and their caregivers. They can help connect individuals to transportation services that meet their needs.
3. Community Ministries of SW Colorado: This organization offers free transportation services for individuals in La Plata County who are experiencing financial hardship. They can provide rides to medical appointments, job interviews, and other essential appointments.
Conclusion on Finding Debt Relief in Colorado
It's time to take control of your debt with TurboDebt. We offer customized programs to help you eliminate your outstanding balances and start rebuilding your wealth. Avoid bankruptcy and work to restore your credit with proven debt relief solutions.
Working with a reputable debt relief company, like TurboDebt, can help you get on a path to financial freedom. Please take advantage of our free debt relief consultation to know what works best for your situation.