Colorado Debt Settlement
Colorado Debt Statistics
According to the latest Truth in Accounting report from September of 2020, Colorado’s state government owes over $5.4 billion in debt across its various bills. This debt leaves each taxpayer with a burden of close to $2,600 in order to repay all of the state’s debts.
While Colorado’s median household income ranks 12th among states in the U.S., it’s debt-to-income ratio per taxpayer is second in the nation only trailing behind Washington D.C. In terms of credit card debt, Colorado averages around $3,000 per consumer which makes it the 5th worst state for credit card debt in the country.
Debt Relief Options Available in Colorado
Here are brief descriptions of some of the debt relief programs that Colorado consumers can make use of.
1. Continue making minimum monthly payments.
Continuing to just make minimum monthly payments is a strategy for paying off debt, but it’s often the worst one to use. Taking this route often takes the most time and capital in the process of repayment.
2. Colorado Debt Management Programs
Credit counseling is a form of debt relief that involves working with a debt management firm to organize & manage a repayment plan. With these programs, a debtor makes a single monthly payment to a counseling agency who then distributes the funds to creditors on behalf of the debtor, ideally while securing lower interest rates in the process. Debt management does not reduce the total of debt and you still end up paying back the entire amount in addition to interest. The downside with these programs is that they are typically designed to take between 3-5 years to complete and have low completion rates in the state of Colorado, but the advantage is that they are usually offered for free.
3. Debt Consolidation Cards or Loans in Colorado
Debt consolidation is a form of debt relief that involves taking out a large loan with a low-interest rate and using those funds to pay off other unsecured debts that have higher interest rates. This consolidates multiple unsecured debts into a singular monthly payment that should be lower than what was being paid for before because of the reduced interest rates. Similarly to debt management, debt consolidation works to reduce the interest rate but does not work to reduce the principal debt balance, so the entirety of the debt and the interest still has to be paid off. The disadvantage with this form of debt relief is that consolidation loans and credit cards can be hard to qualify for. Additionally, the promotional, low-interest rates that are characteristic of these types of loans typically only last for a certain time period, and if the loan is not paid off during that window, the interest rate returns to being high.
4. Colorado Debt Settlement or Debt Negotiation
Debt Settlement in Colorado entails working with creditors to negotiate a repayment settlement which is less than the total owed. When compared to consolidation or counseling programs, settlement is unique in the sense that is the only form of debt relief out of the three that can reduce the principal balance in addition to the interest rates. With a reduced balance of debt and lower interest rates, settlement can generally be the fastest and least costly option for getting out of debt in Colorado quickly.
If you’re curious whether or not settlement would work with your financial situation, contact a New Era debt expert today to learn more about Denver debt settlement, Colorado Springs debt settlement, or Aurora debt settlement.
5. Filing for Bankruptcy in the State of Colorado
For individuals who have creditors that are no longer willing to negotiate, bankruptcy can be a viable option for clearing their unsecured debts.
Bankruptcy can clear some or all of a debtor’s responsibility for repaying a debt, but does significant damage to their credit profile in the process. A formal declaration of Chapter 7 or Chapter 13 bankruptcy in Colorado puts a complete stop to the creditor collection process, but the debtor must deal with the long-term legal and financial consequences that come with these proceedings.
Colorado Debt Settlement Process
The Debt Settlement process works by negotiating out a settlement deal with creditors on your unsecured personal debt accounts. Again, this is different from Debt Consolidation or Credit Counseling which only affect the interest rate and do not reduce the total debt balance.
Settlement is an effective form of debt relief because creditors are willing to accept reduced payments on a debt as an alternative to losing the entire repayment if the debtor files for bankruptcy.
New Era debt negotiators have over 2 decades of experience working with creditors in Colorado, but the deals don’t last forever. The ones who are most successful in debt settlement are the ones who are ready and willing to respond & get started immediately.
Work with a team that has experience with El Paso County debt settlement, Denver County debt settlement, and Arapahoe County debt settlement. Call New Era today to learn more. 800-527-4421
Debts Eligible for Colorado Debt Settlement:
- Credit cards / Department store cards
- Signature loans
- Defaulted, private student loans
- Personal credit lines
- Old repossessions
- Old judgments
- Other unsecured debts
Debt That do Not Qualify for Colorado Debt Settlement:
- Home mortgage loans
- Healthcare costs / Hospital bills
- Student loans from a federal source
- Loans for cars
- Debts from credit unions
- Other secured debts
Colorado Debt Settlement Services by City
- Denver Debt Settlement
- Colorado Springs Debt Settlement
- Aurora Debt Settlement
- Fort Collins Debt Settlement
- Lakewood Debt Settlement
- Thornton Debt Settlement
- Arvada Debt Settlement
- Westminster Debt Settlement
- Pueblo Debt Settlement
- Centennial Debt Settlement
This is not an exhaustive list. Check with your Colorado debt counselor for more information.
Figure Out if Debt Settlement is Right for You
Are you burdened by a legitimate condition of financial hardship ?
A loss of employment, divorce, or sudden medical costs are some of the most common causes of debt in Colorado. Each of these situations creates a legitimate, financial hardship that can wreak serious havoc on a household budget, but each of these events can happen to anyone through no fault of their own.
If you are over your head due to a hardship circumstance, and you’d prefer to work things out with your creditors rather than declare bankruptcy in Colorado, then Debt Settlement can provide an honest and ethical debt relief alternative.
Are you committed to becoming free from your debts?
Debt Settlement is not a “free lunch” for those who don’t want to pay their debts. It’s an aggressive approach to debt relief that should be utilized by those who understand the risks and are willing to stay the course, even when the road gets a little bumpy, until they are free from their unsecured debts. For those who are willing to meet the challenges of Colorado debt settlement head on, a quicker & more affordable option than both consolidation and debt management can be found.
Are your debts primarily from credit cards?
Personal lines of credit, department store cards, financing contracts, signature loans, repossession deficiencies, and miscellaneous bills are all debts that can be negotiated down in a debt settlement program. However, the largest discounts are often obtained from credit card debts. So, if a greater portion of your debt is from credit cards, you can likely expect good results from a Debt Settlement strategy.
Can I Trust New Era?
By asking 14 important questions, you can pick the good settlement firms from the bad ones right away. It’s always a good idea to check the company’s complaint history and overall rating with the Better Business Bureau (BBB) to see what other customers from Colorado have experienced with a settlement firm.
New Era has maintained an A+ rating with the BBB and settled over $250,000,000 in debt since our time in the industry. Visit our Testimonials page to to learn more about what it’s like to work with our settlement programs.
Here’s What Sets New Era Apart:
No Upfront Fees. A Debt Settlement company should never charge you until they’ve settled your debt. Not only is this the ethical way to charge for settlement services, but as per an FTC ruling effective October 27, 2010, it’s also the only legal way to charge for these types of services. Any settlement company trying to charge you upfront is breaking the law.
- Experience. Many brand new debt settlement companies headed by prior mortgage industry people sprang up after the crash of the sub-prime mortgage industry in the 2000’s. Because of their inexperience in the industry, a lot of these settlement firms lack the connections with creditors that lead to the best settlement deals. New Era has been settling debts in Colorado for over 20 years and have removed over $250,000,000, across the company, from our clients’ debts in that time.
- No “add-on” fees. To circumvent the law regarding settlement fees, many settlement companies have started charging for administrative fees, signing fees, consultation fees and various other excuses to get money from you. At New Era, we charge only a settlement fee which is not paid for until the debt is fully settled.
- End-to-end service. Some “debt settlement” agencies you may speak to are really only sales groups who look for debt settlement accounts to sell off to actual settlement firms who handle the negotiations. This creates a problem where your potentially sensitive financial data is being passed around between multiple third parties and the sales group who you initially spoke to has little interest or control in how the debt is actually settled. At New Era, you can rest assured that we handle your program from beginning to end with an in-house team of experts.
Consumers in Colorado can get a FREE analysis of their debt. We will show you how much time and money you can save. Contact New Era Debt Solutions to get started.