Colorado Debt Relief

Most states that have high credit card debt are quite wealthy, but this isn’t the case for Colorado. It is the 5th state with the highest average credit card debt at $7,533 per household. The median income for the state is at $54,046, which is the 15th highest in the country.

debt relief in coloradoThe average credit score here is 669 – the 11th highest in the nation. Because of the high credit score average, it goes to show that Coloradans are still living within their means. Those who need help with controlling their credit card and other debts can use Colorado debt relief services.

Options for Debt Relief in Colorado

There are different ways that Coloradans can get out of debt. Some of the available Colorado debt relief options that you can use include:

  • Debt consolidation loan: This will pay off all remaining debts that you have, so that you can just focus on repaying the one loan. Seeing improvement with your credit report and rating is a lot faster with this option.
  • Debt settlement: This service is available to help debtors with negotiating a lower lump sum payment for debts owed.
  • Debt counseling: To help you find ways to get out of debt and stay that way, a debt counselor can be used. This can be obtained from a debt management company. Here, all of your debt accounts will be taken care of by the debt manager, so that you won’t have to worry about it. The debtor just has to have a funded account that the manager can use to make the monthly payments.

Filing for Bankruptcy

Another option for those deep in debt is filing for bankruptcy. This used to be a way out for many, but due to new laws, you must meet certain requirements to fall under the Chapter 7 or Chapter 13 categories. The difference between Chapter 7 and Chapter 13 or as follows:

  • Chapter 7 clears away unsecured debts like credit cards and personal loans.
  • Chapter 13 requires payments to be made over a specified amount of time.

Debtors are no longer allowed to file for bankruptcy and not make payments towards their debts. This is why an evaluation is done of the debtor to determine whether he or she will have to file for Chapter 13 instead of Chapter 7. Whichever is chosen, the debtor will have the bankruptcy on their credit report for 7-10 years, which looks very bad.

Choosing a Debt Relief Company

When looking for debt relief in Colorado, it’s important that you only work with a company that is licensed to operate in Colorado. Some debt relief agencies only work with certain debt amounts. For instance, some have minimums of $10,000 and $7,500, while others will accept lower debts like $2,500. Some have maximums of $10,000, while others have no max. Be sure to look into how much debt you currently owe, so that you can find a debt relief agent that can better service you.

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