Colorado Debt Relief

The “Centennial State” boasts low property taxes, low pension taxes, and a lack of income taxes making Colorado an attractive place to live. However, sky-rocking housing costs are at a very fast rate, and the same issues with inflation are being felt throughout the country. This will make the residents squeezed. It is the major reason Colorado ranks 11th in consumer credit card debt, with an average balance of $5,541.

It is a fact that Colorado has one of the highest consumer debt burdens in the country, with various types of debts like medical, payday, auto, or student loans. Fortunately, along with several debts, there are also many Colorado Debt Relief programs. These programs will help Colorado residents who need financial assistance.

Colorado Debt Statistics

According to the latest report, the state government of Colorado owes over 45.4 billion in debt across its different bills. This debt leaves each taxpayer close to $2600 to repay all state debts. At the same time, the median household income of Colorado ranks 12th among the other states in the US.

In addition to this, the debt-to-income ratio per taxpayer of Colorado is second in the nation. It is just trailing behind Washington, DC. In terms of credit card debt, this state averages around $3000 per consumer. It makes Colorado the 5th worst state for credit card debt in the country.

Debt Relief Programs

The government is well aware of the financial troubles of the residents of Colorado. Therefore, there are some essential programs for Colorado debt Relief. These programs help Colorado’s residents who are looking for a fresh start. Various debt relief programs available in Colorado are as follows:

Debt Settlement

It is a process where a person on your behalf negotiates with creditors to agree on a settlement amount of your debt. Debt settlement is a very useful debt relief program. This program helps you get back on track and regain control of your finances. So, to get a debt settlement, it is important to understand all the potential consequences and alternatives. However, it is also true that debt settlement is so beneficial because it can save time and make you stress-free. It is a most amazing Colorado Debt Relief program that allows you to pay less than what you owe, and you can eliminate the debt in one lump sum.

Debt Consolidation Loans

In consolidation debt relief, many high-interest credit card debts are combined into one monthly payment at a very low interest. It commonly consists of borrowing enough money from a bank, credit union, or online lender to pay all your credit card debt. Additionally, you will save money in the long run if you get a debt with lower interest than your current rates.

Debt Management

It is a very popular type of debt relief in which you can make a single monthly payment to a credit counseling agency. After that, they will distribute the payment to your creditors on your behalf. Ideally, this Colorado Debt Relief Program involves negotiating lower interest rates and providing all the debt-related services that you need. So the debt can be paid off faster than just making minimum payments. A big advantage of this debt relief program is that you get this without taking a bank loan. There is no doubt that debt management relief is a proven way to reduce credit card interest rates.

Bankruptcy

Sometimes it is the only debt relief option, though usually only if all the other options are exhausted. There are two types of bankruptcy in Colorado, Chapter 7 bankruptcy and Chapter 13 Bankruptcy. The major aim of filing in Chapter 7 bankruptcy is to pay off the unsecured debt by liquidating a debtor’s non-exempt assets. On the other hand, Chapter 13 bankruptcy perfectly goes for those who want help to pay down their debt and have enough money to make monthly payments.

Conclusion:

Colorado is one of the most expensive states in terms of housing and household living. Living in this state is difficult if you have a huge debt burden. These Colorado Debt Relief programs help you get debt relief while living in Colorado.