In a Nutshell

Colorado has one of the highest debt-to-income ratios in the country at 2.06%, carried by a population of over 5 million people. 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 a potentially unmanageable debt situation. Some of the most popular options include consumer credit counseling, debt settlement, and debt consolidation, to name a few.

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 In Colorado Work

If you’re dealing with bills, loans, and lines of credit that are becoming troublesome to manage, you may be wondering what your options are to get yourself out of debt. Many Colorado 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 just a handful of other states topping $6,000.

Auto Loan Debt

Colorado residents are taking out more car loans than ever before. In the past year, the average balance on 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.

Mortgage Debt

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.

Bankruptcy

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 discharge some or all of their debts.

While bankruptcy can help you eliminate debt, it has severe consequences in Colorado. Filing for bankruptcy will severely hurt your credit scores with all three of the major credit reporting bureaus, and its lasting residual effects will likely stay on your credit reports 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.

Credit Scores

Coloradans claim an average credit score of 730, which is 16 points higher than the national average of 714, placing them on the higher end of what’s considered a “good” credit score range. 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.

Identity Theft

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 of any kind to save and access their money. Instead, they access and send funds through alternative sources like paycheck advances and money transfer services, like Western Union. These methods can often cost individuals an exorbitant amount in fees, dragging them 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 2023, we managed to assist 4,708 clients in Colorado. Of these, we enrolled 1,426 clients into a debt relief program, reducing their debt to an average of about 53,77% of their previous balances before fees. These clients enrolled a total debt of $34,034,466, with an average enrolled debt of $23,867 per client.

TurboDebt Debt Relief Program Statistics in Colorado 

Top Types of Debt Relief Options in Colorado

Avoid debt collection and get your finances back on track after dealing with these common 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, by using credit to purchase essential items.

Making late payments or paying only the minimum each month means you'll accrue more fees and interest with each billing cycle. With the high interest rates charged by most credit card companies, you're likely to rack up additional debt this way. You may even end up paying significantly more by the time you finally pay it all off than you had 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, such as debt settlement, that allow us to work with various creditors on behalf of our clients to lower monthly payments and interest rates so they can get back to building wealth.

Divorce Debt

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, if a debt is in both your names, it can still affect your credit scores until it's paid off.

At TurboDebt, we can help you get relief from your divorce debt by making a plan to eliminate your outstanding balances after the divorce proceedings are finalized so you can restart your life debt-free.

Business Debt

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 still a way to effectively deal with it, should it occur. With TurboDebt's help, business owners can get relief from their business debts and focus on growing their businesses in the future.

Medical Debt

Medical debt is the leading cause of personal bankruptcy in Colorado, with almost 66% of bankruptcies linked to some type of medical debt. In fact, the average medical debt for a household in Colorado is $18,000 and rising.

TurboDebt wants to help you get relief from your medical debt without the need for more difficult solutions like filing for bankruptcy.

Homeowner Debt

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

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 and unpaid taxes on Traditional IRA withdrawals and employer-sponsored retirement plans (like 401k’s and 403b’s). It can also come from unexpected expenses that strain a budget relying on fixed income sources.

We can help you get relief from this type of debt by negotiating with creditors and setting up an easier 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 that’s become unmanageable. 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, which assist you in administering your monthly payments and eventually help you pay them off faster or in an easier way.

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 budgeting and 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

Debt settlement is another option that can help you make a single payment at a reduced cost. When you settle, a debt settlement company negotiates with creditors or debt collectors on your behalf to accept less than the current balance owed. This way, creditors receive some of their money back, versus potentially none of it, if your loan or account remains unpaid and is eventually charged off.

In some cases, debt settlement companies can reduce your 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 rate for their own gain.

Credit Counseling

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.

Bankruptcy

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 most cases, a bankruptcy filing will affect your credit reports and credit scores for nearly a decade, making it hard to access lines of credit or loans for a minimum of 7-10 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.

Debt Forgiveness

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 meet certain qualifiers.

If you qualify for a debt forgiveness program, you'll receive a complete cancellation of all or at least a portion 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.

Making Debt Relief Work

Once you decide on the most effective way to eliminate your debt, it’s important to continue living a financially healthy life. Brad Reichert, debt expert and founder and managing director of Reichert Asset Management LLC, offers advice to Colorado residents who want to stay out of debt.

“Even with the favorable tax structure in the state, the cost of living in Colorado is what often causes people to fall into debt. It’s critical to make sure you establish a budget that is appropriate for your income, so you keep from overspending on things that are unnecessary or outside of your budget,” Reichert says.

“Look through your expenses to find areas where you can cut back. With consistent focus on your income and expenses, you can avoid sinking into debt that may eventually get out of control,” Reichert adds. 

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 costs, through Medicaid’s integration with Medicare and other programs to serve those in need.

Child Care

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 services 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.

Finding Debt Relief in Colorado

Working with a reputable debt relief company can be just the start you need to get back on a path to financial freedom.

It's time to take control of your debt with TurboDebt. We offer customized debt relief programs for Colorado residents to help you eliminate your outstanding balances and start rebuilding your wealth. Avoid bankruptcy, work to restore your credit profile, and improve your monthly cash flow with proven debt relief solutions.

Read over 10,000 positive TurboDebt reviews on Google and Trustpilot to see how other consumers like you have benefitted from our expert assistance. 

Please take advantage of our free debt relief consultation to find out what works best for your unique situation.