Denver Debt Settlement
Thousands of Colorado consumers find themselves in trouble with debt every year. If you live in Denver and are struggling to pay bills, debt relief could help to alleviate the pressure. Rather than filing for bankruptcy, many debtors in Denver have chosen to negotiate their debts through debt settlement as an ethical means to reducing their unsecured debts.
Denver Debt Statistics
Denver residents make an average of $60,000 per household and maintain a per capital personal income of $58,000. The average credit card held by Denver consumers is close to $6,000 per person, but also maintain an average credit score of nearly 700 which is above average.
Throughout Colorado, the unemployment rate has been close to 7% across the state’s 5,200,000 residents. Denver itself has around 6% unemployment.
Common Debt Relief Methods Used by Denver Consumers
Denver residents seeking looking to relieve their debts have access to a variety of programs to help them get back to even. These are a few of the commonly used methods in Denver:
Balance Transfer Credit Cards in Denver
Balance transfer credit cards are a type of low-interest credit card that allows debtors to save on interest by transferring the balance with little to no fees. If qualified, a debtor can open a balance transfer account and use that capital to pay off their existing unsecured debts with higher interest rates. The downside with balance transfer cards is that many have high credit requirements which may be hard for those with significant debt issues to meet.
Denver Debt Management or Credit Counseling Programs
Credit counseling programs are a form of debt management that involve working with a counseling agency. A debtor will often be allowed to make a single payment monthly to the counseling agency who distributes the payments among creditors while being able to negotiate lower interest rates during the repayment process.
The disadvantage with debt management is that it mainly works to reduce the interest rate of a debt and does not reduce the principal debt amount.
Denver Debt Consolidation Loans
Debt Consolidation involves taking out a low-interest loan and using it to repay other unsecured debts that have higher rates of interest. While repaying debts at a lower interest rate, a debtor will lose less capital to interest throughout the duration of the debt. Consolidation also offers benefit in terms of organizing a debt by combining many or all of them into a single monthly payment.
The main disadvantage with debt consolidation loans is that they only mainly treat the interest rates and do not reduce the principal balance of debt.
Debt Settlement or Debt Negotiation in Denver
Denver Debt Settlement is unique from both consolidation and counseling in that it can reduce the principal debt balance in addition to lowering interest rates. So, a settlement can reduce the amount that a debtor has to pay in interest and lower the original debt that they were trying to repay by up to 50%.
In many situations, Debt Settlement can offer the fastest path to freedom from unsecured debt. However, not all creditors are willing to negotiate a settlement for a debt, leaving a debtor with few options other than bankruptcy.
Filing for Bankruptcy
Filing for personal bankruptcy can put an immediate stop to the debt collection process in Denver, but it may still require a debtor to repay all or some of their debt depending on which type of bankruptcy is filed. The biggest disadvantage with bankruptcy is that it can cause severe damage to your credit score for years, but it can be a viable option for those with creditors who unwilling to negotiate.
How Debt Settlement Works in Denver
Debt settlement is a form of negotiation which involves working out lump sum payment with creditors to satisfy the repayment of a debt. This form of debt relief can offer a huge reduction in the principal debt balance with many debtors only having to repay 40-50% of the principal debt in the best-case scenarios. Once the creditor has received the full payment, the debt is considered to be repaid, but this does put an asterisk near the repayment on one’s credit history.
Settlement is an effective strategy of relieving debt as many creditors are more willing to negotiate than to lose all possibilities of repayment when a debtor files for bankruptcy. Getting even a portion of the debt back is a better alternative to this for creditors.
Benefits of Negotiating Debt in Denver with New Era
- No upfront or add-on fees. Debt settlement is a service that can only be legally charged for after the debt has been settled. Companies that charge a debtor for anything before this are breaking the law. With New Era, you only pay a fee after the debt has been fully settled.
- All-in-one service. Many settlement agencies are only sales groups that pass their clients along to another company to handle the settlement. This means that multiple parties are getting access to your financial information and the sales group may have little or no control how the settlement turns out in the end. At New Era, we handle cases from beginning to end.
- Experienced settlement firm. New Era Debt Solutions has over 20 years of experience and has settled over $250,000,000 in debt for our clients. Over the years, our firm has built a track record for success because of the relationships we’ve built with creditors which allow for the best settlement deals to be reached. Check out our client testimonials to get an idea of what it’s like to work with our programs.
Start Your Journey to Freedom from Debt in Denver Today
If you’re in over your heard financially in Colorado, there are options that can help you get back on your feet. Let a New Era debt expert show you how much time & money you can save with the right type of debt relief solution for your situation. Contact us at New Era Debt Solutions to figure out your options for debt relief in Denver.