Colorado Debt Relief Needed: “CO has fifth-worst credit card debt in U.S.”
Credit card debt in Colorado is the fifth-worst in the nation, according to a study by Wallethub. The study revealed, “Coloradans struggle with credit card debt more than residents in other states. Alaska ranked as the worst and Indiana ranked as the best states.” A big part of the problem is that the average interest rate for Coloradans is 16.91% on credit card debt, with an average balance of $6,718. Just to put that into perspective, consider the following: If you make minimum payments towards paying off $6,718 in credit card balances that have an average interest rate of 17%, you’ll be paying on these cards for close to six years and end up paying over $10,000 to become debt-free.
Here are the 10 Cities/Communities with the Worst Credit Card Debt in Colorado
- 1. Durango, Colorado
- 2. Monument, Colorado
- 3. Lafayette, Colorado
- 4. Golden, Colorado
- 5. Parker, Colorado
- 6. Castle Rock, Colorado
- 7. Evergreen, Colorado
- 8. Highlands Ranch, Colo.
- 9. Windsor, Colo.
- 10. Denver, Colo.
Best Colorado Debt Relief Programs
Colorado residents have multiple debt relief programs to choose from as of 2020. But before deciding on consolidating or using any type of program, try to pay off your bills on your own by using the debt snowball method. Here’s a free budget calculator to help you free up some cash. You can then turn to this snowball calculator to help you pay off debt faster. Also, check out The 10 Best Ways to Clear High Credit Card Balances. See, all Colorado debt consolidation programs will have some type of negative effect on your credit score, so for that reason only use a program if you truly have a financial hardship and need assistance. If you consolidate debt with a loan, that route may not lower your credit score but it will cost you more than a program could.
Colorado (CO) consumer credit counseling debt relief programs can reduce interest rates and give you control of your credit card payments. You can get out of debt in as fast as 4-5 years with consumer credit counseling. Debt settlement programs in Colorado can offer you a much lower payment than a consumer credit counseling program would, but your credit score will also get negatively affected by debt negotiation. Colorado residents also have a validation program to choose from. What is validation? Validation disputes the validity of an account and if proven legally uncollectible, you don’t have to pay the debt. Think of a speeding ticket, you may have been speeding but the ticket can still get dismissed if the police officer did something wrong. Shockingly, third-party collection agencies often can’t prove that they are legally authorized to collect on a debt, resulting in the consumer not having to pay the account and it coming off their credit report in many cases.
Debt validation used to deal with $10,000+ in Credit Card Debt & Colorado resident walks away from paying:
Colorado debt reduction options can be accessed by calling in Toll-Free at (866) 376-9846. IAPDA certified counselors can provide you a free consultation from Monday-Friday 7 am – 6 pm.
The following page explains debt collection laws and how each Colorado debt relief program works. There are multiple options to choose from, depending on your credit score, goals, and your current financial situation. All debt relief programs do also have potentially adverse consequences that you need to understand prior to joining a program.
CO Debt Relief, Settlement and Consolidation Program Eligibility
- Discover credit card debts can only be resolved on debt settlement. Discover does not qualify for a debt validation program.
- CO residents must have over $7,500 in debt to qualify for all plans.
- With consumer credit counseling, only credit card debt qualifies. Almost all unsecured debt qualifies on debt settlement, and if your accounts are with a third-party debt collection agency you may also qualify for debt validation.
- Banks will only issue a debt consolidation loan if the applicant has a 690 credit score or higher. With a credit score of less than 700, beware of high-interest rates and fees.
- Must be able to afford to pay around half of what you were paying when paying minimum payments on credit cards. There are no pre-payment penalties if you want to pay more and finish faster, but plans can only be stretched out to 48 months.
- Must have over $15,000 in private student loans, to qualify for private student loan relief.
Colorado Debt Relief Program Benefits
- Become debt-free in as fast as 18-months
- Choose an affordable monthly payment
- Pay no upfront fees and only pay if results are achieved
- Select from multiple Colorado debt relief programs
- Before signing up for a Colorado debt relief program, take advantage of a free consultation with one of our IAPDA Certified debt experts! The quickest and easiest way to find out if you’re eligible for debt relief, settlement and consolidation programs in Colorado–is to simply call Toll-Free (866) 376-9846.
Potential Downsides of Colorado Debt Relief Programs
There are potential downsides that come along with debt relief programs. And not everyone qualifies.
Just like when you go to the doctor and get medicine. There are potential side effects that you need to be aware of.
Would you go to the doctor to get medicine if you weren’t sick? That’s like debt relief. You don’t need a debt relief program if you aren’t financially ill.
What is financially sick?
- If you’re struggling to make minimum payments
- If you can’t get your balances reduced due to high-interest rates
- If you fell behind on payments already
- If you are experiencing financial hardship; like reduced income, medical condition or unexpected expense
- Is your life being negatively affected by debt? If yes, debt relief could be your answer.
In general, the downsides that come with debt relief programs are;
- a potentially negative effect on credit scores
- creditors could potentially issue a summons if creditors aren’t getting paid on a monthly basis
- not all clients are able to make it through the program successfully
- if a portion of your balance gets forgiven, you could owe taxes on the amount saved
Debt Consolidation Colorado
Colorado debt consolidation gives you a loan to pay off your debt. Here at Golden Financial Services, we cannot give you a loan. What we can offer you is a debt relief program that is tailored to address your specific financial needs.
Need a low monthly payment?
Or are you looking to resolve your debt in the quickest possible timeframe?
Are you concerned about your credit taking a hit?
We can give you a plan that gets you completely debt-free within 36 months and includes credit restoration. Within 36 months your debt and credit issues could all be behind you.
Debt Settlement Colorado
Colorado debt settlement programs are for those consumers who can’t afford to continue paying at least minimum payments.
Debt settlement is where your balances will be negotiated down.
You get one small monthly payment – and that’s it! You become debt free in around three-four years with debt settlement.
Colorado residents can call toll-free for a Free Savings Estimate at (866) 376-9846.
Consumer Credit Counseling Colorado
Consumer credit counseling plans are for credit card debt. No other debt category qualifies.
These plans negotiate your interest down. You make a single monthly payment to the consumer credit counseling company, and they disperse the funds to your creditors. Even if you have 25 credit cards, you still only need to make one monthly payment.
Consumer credit counseling gets you out of debt in around 4.5 to 5 years. There isn’t much flexibility in these plans like with debt settlement and debt validation plans.
The good news is that your credit score won’t take much of a negative hit with consumer credit counseling. Colorado residents can call Golden Financial Services toll-free at (866) 376-9846 to learn more.
Debt Collection Accounts and Credit Card Debt Colorado Statute of Limitations
From the day you officially are “late” on your monthly payment up until six years is how long the statute of limitations is in Colorado. Credit cards and debt collection accounts are both listed under this rule (Colorado Revised Statutes Title 13 S.80-103.5).
So if your payment is due on December 1st, 2018, and you skip it, you will officially be late on your payments on January 2nd, 2019. Six years after that if you still haven’t gotten sued, the statute of limitations will have expired. Once the statute of limitations expires in Colorado, you can now legally walk away from the debt without paying.
If you have debt collection accounts, get a free consultation today. Learn your options from an IAPDA Certified Colorado debt counselor.
Colorado State Laws for Collection Agencies and Licensing Requirements
Debt collection agencies in Colorado need to be licensed and bonded. Bonds start at $12,000 and increase based on revenue, to a max of $20,000. Therefore, one of the aspects of a debt validation program will dispute the debt forcing the collection agency to provide proof that they are licensed and bonded. If they cannot provide this proof a debt can become invalidated and will not need to be paid.
There is also the Statute of Limitations on credit card debt in Colorado, which says after six years a collection agency can no longer sue you over a debt. Validation programs will also request collection agencies to prove that they are aware of when the statute of limitations on a particular debt expires, which often the collection agency can’t accurately answer because they don’t know exactly when you first stopped paying on the credit card (but legally, they are supposed to know this information).
Exemptions: Out of state collection agencies must be licensed in Colorado. However, Colorado has a limited “open borders” law that eliminates licensing for out of state collection agencies who (1) collect debts incurred outside of Colorado, (2) use only interstate communications (telephone calls, letters, faxes) to collect these debts, (3) are in a state which regulates and licenses collection agencies and does not require licensing for similarly situated Colorado collection agencies (reciprocity).
Every licensee must maintain an office in the State of Colorado which is open to the public during normal business hours where payments may be made and which has access to consumer payment records and client account records. This need not be a “working office” with debt collectors, solicitors, or the collections manager. The office may be shared with other businesses if all signs and directories are clearly marked and you can receive mail at that location. Record access may be provided by toll-free telephone line, fax, or computer connection.
Best Colorado Debt Relief, Settlement and Consolidation Company
- Golden Financial Services is IAPDA Certified and Accredited
- Better Business Bureau A+ rated.
- Some Colorado debt relief programs come with credit restoration (for free) and a money-back guarantee
- We can give you a free consultation on your Colorado debt relief options.