Turbo Takeaways

  • Denver residents carry some of the highest consumer debt in America, at over $150,000 per individual. 
  • Top debt relief programs in Denver include debt settlement, credit counseling, debt management plans, debt consolidation, and bankruptcy. 
  • TurboDebt enrolled an average of $25,000 in debt from each of our Denver clients in 2023.

Debt Relief in Denver: Why Is It Important?

Many residents of the Mile High City also carry sky-high debt, making it essential to find options for paying debts off quickly and with less cost. Debt relief programs in Denver vary from financial advising through a credit counseling agency to negotiating with creditors using a debt settlement company. Understanding the economic climate in Denver can help you understand you’re not alone in your financial struggles and prepare you to seek the right debt relief solution for your needs.

Denver Debt Statistics

Consumer debt provides an overall picture of how consumers fare in a given area. In Denver, residents carry an average consumer debt of $157,943, ranking as the 4th most indebted city in America in 2022. This includes secured debts like mortgages and car loans paired with unsecured debts such as credit card balances and student loans.

Denver wage and employment trends also give clues about how the average resident manages financially. At 3.3%, unemployment in the Denver area nearly doubled from the previous year in 2023. While wages are higher than the national average in Denver County, housing costs are nearly $7,000 above the rest of the country.

With U.S. averages reaching over $1 trillion in credit card debt, high credit card balances also hover like snow clouds over plenty of Denver dwellers. Residents of the Mile High City carry a median balance of $3,589 on their credit cards. For many, this leads to debt from making minimum monthly payments or carrying a balance while being charged high interest rates by credit card companies.

Debt relief programs in Denver give residents a lifeline to pay off outstanding balances for a fresh financial start. Read on to learn more about the options and methods available to citizens of the Mile High City.

TurboDebt Helps Denver Residents Get Out of Debt

In 2023, TurboDebt saved our Denver clients an average of 54% of their total debt before fees. We enrolled over $4 million in total from Denverites carrying about $25,000 each in unsecured debts.

Our Colorado debt relief programs serve clients from the Rockies to the Rio Grande. We’ve helped thousands of residents in the Centennial state pay off outstanding balances and regain financial stability.

Signs You May Need Debt Relief

Debt struggles are a daily reality for many living in the Mile High City. If it’s difficult for you to deal with mounting balances with no clear way to pay them off, it’s time to start considering getting help from Denver debt relief programs.

Here are some other clear signs you should seek assistance:

  • Keeping a high debt-to-income (DTI) ratio (above 30%)
  • Carrying balances on multiple credit cards
  • Having trouble paying monthly bills like rent and utilities
  • Using payday loans as a source of debt relief
  • Resorting to pulling money from your retirement plans to pay bills
  • Maxing out credit cards to make ends meet
  • Eliminating your emergency fund
  • Struggling to put any money into savings

Top Options for Debt Relief Programs in Denver, CO

Denver residents can overcome financial hardship by pursuing the following effective debt solutions:

Credit Counseling

Credit counseling agencies give consumers several options for debt relief assistance. Although counseling doesn’t resolve your debts, it can help you create a manageable plan to pay them off and give you the chance to discuss your financial situation with professional credit counselors.

Here are some of the benefits of choosing a credit counseling program:

  • Lower interest rates and waived fees on your accounts
  • Help understanding your credit report and history 
  • Assistance in choosing a debt relief program
  • Financial education courses for better money management

Works best for: Denver residents who need direction and financial advice about debt

Debt Management Programs

Many credit counseling organizations and some for-profit and nonprofit agencies offer debt management programs to help Denver residents organize their debts into a single monthly payment. When you enroll in a program, you’ll determine how much you can pay by creating a debt management plan that’s approved by your creditors.

Here are the pros of choosing a debt management plan:

  • Payments made to creditors through the organization
  • Simplified repayment plan
  • Lower interest rates after negotiations

Works best for: Consumers with multiple debt repayments

Debt Settlement

When you negotiate with creditors to settle your debt, you can often drastically reduce what you owe. The settlement company completes debt negotiations on your behalf, convincing creditors to accept a smaller lump-sum payment to cover your total debt. Working with a debt settlement company can effectively eliminate up to 50% of your total debt before fees.

Once you determine how much you can put toward your debt each month, you’ll start paying into a savings account. After you save enough to end your debt, the organization uses your saved funds to pay off your creditors.

Here are the top reasons to consider debt settlement in Denver:

  • High debt balances often reduced by 50% or even more
  • Faster debt repayment
  • Settlement companies contact creditors on your behalf

Works best for: Consumers with maxed-out credit cards and other unsecured debts like medical bills and student loans

Debt Consolidation

Debt consolidation gives Denverites the chance to reorganize debts and reduce interest payments if done right. First, decide where you struggle the most with debt. If you’re carrying moderate credit card balances on multiple accounts, opening a zero-interest balance transfer credit card may be a quick solution to help you start paying off your debts.

Your other option is to take out a debt consolidation loan, rolling all your current debts into a single monthly payment. First, you’ll need to get approved for a low-interest loan that’s large enough to cover all your current debts. Using the funds from your chosen lender, you’ll pay off your existing debts and start repaying the new loan instead. However, if you choose this method, it’s important to carefully consider the terms and interest rate of the loan to avoid paying more for your debts overall.

Works best for: Denver residents with good credit and moderate debts on multiple accounts

Debt Forgiveness

Total debt forgiveness is rare, but some state and federal government agencies offer assistance programs for low-income individuals and those who’ve worked in specific jobs or high-needs areas. For example, government employees may qualify for personal loan forgiveness by meeting certain qualifications.

Once you qualify, debt forgiveness programs can eliminate most or all of your outstanding debt. It’s important to note, though, that any forgiven debt may count as income on your next IRS tax return.

Works best for: Denver residents who work in public service roles and those with low income

Bankruptcy

As a final debt relief solution, Denver residents can file for bankruptcy. While not ideal for your credit score, bankruptcy can effectively wipe out debt after you sell off assets or reorganize your debt into a payment plan as decided by the court.

Individuals typically file either Chapter 7 or Chapter 13 bankruptcy to resolve debts. In Chapter 7 bankruptcy, the court orders the sale of your assets to pay off creditors and often dismisses the remaining amount. With Chapter 13, a judge determines a new payoff plan that typically lasts 3–5 years but eliminates the need to sell off assets.

Before choosing this type of debt relief, consider speaking to a bankruptcy attorney at a reputable law firm for legal advice about how to proceed.

Works best for: Consumers who’ve tried and failed to relieve debt through other methods

Consumer Protection in Denver

Denver consumers can seek debt relief services knowing their legal rights are protected. “The Colorado Uniform Debt Management Services Act (DMSA) of 2008 regulates companies that offer and provide debt management services to all Colorado residents,” explains Brad Reichert, founder and managing director of Reichert Asset Management LLC.

“Under Colorado law, Debt Management Services Providers include non-profit and for-profit Credit Counseling and Debt Settlement companies. The law also applies to law firms and attorneys unless the attorney is licensed to practice law in Colorado and is providing legal services in an attorney-client relationship,” shares Reichert.

Why Choose TurboDebt’s Debt Relief Program?

When it comes to debt relief in Denver, TurboDebt is a trusted partner in the Mile High City and across the state of Colorado. We’ve worked with thousands of Colorado residents, offering solutions to big debt problems.

If you’re carrying thousands of dollars in unsecured debts from credit cards, personal loans, and medical bills, we think you’d benefit from working with us. Here are the top reasons to partner with TurboDebt:

  • We’ve proven our clients trust us with over 10,000 5-star TurboDebt reviews on Trustpilot and Google.
  • Colorado clients save an average of 54% on their total debt amount before fees. 
  • Clients typically pay off their debt in 24–48 months using our program.
  • Our expert team negotiates with creditors to settle your debts, so you don’t have to keep dealing with debt collectors. 
  • We’re accredited by the American Association for Debt Resolution (AADR) and have an A rating from the Better Business Bureau (BBB).
  • TurboDebt never charges upfront fees.

Get started with a free consultation to determine how you can start paying off massive amounts of debt. Contact us today to begin your journey toward debt-free living.