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Colorado Debt Relief Guide

The “Centennial State” boasts low property taxes, low pension taxes, and lack of income tax, making Colorado an attractive place to call home. But with home prices and housing costs skyrocketing at a rapid rate and the same issues with inflation being felt throughout the nation, consumers are getting squeezed. That may explain why Colorado ranks for 11th in consumer credit card debt with an average balance of $5,541.

“Coloradoans are having a rough time with high credit card balances thanks to rising prices and unmanageable housing costs,” explains Gary Herman, President of Consolidated Credit. “Residents need to focus on getting debt-free with no credit card balances hanging over their heads. It’s the best way to combat inflation when it comes to your own household budget.”

Consolidated Credit Helps Colorado Residents Reduce Their Total Credit Card Payments by Up to 50%

Consumer debt in Colorado

This chart shows a breakdown of average consumer debt in Colorado based on the latest Household Debt report from the Federal Reserve.

In 2020, 8,278 Coloradoans filed for bankruptcy compared to the previous year’s filing total of 11,377.

Income and employment in Colorado

Colorado is not a right-to-work state. However, Colorado operates under a hybrid policy known as the Labor Peace Act. Under the Act, employees at most workplaces are not required to join a union or pay any union dues. On the plus side, workers can still enjoy the same compensation and benefits as any union members. However, non-union workers do not receive any union protections.

Colorado is an employment-at-will state. That means an employer can terminate employment at any given time and for any reason. In the same manner, employees can resign at any given moment and for any reason at all. Both the employer and employee do not guarantee they will uphold their end of an employment agreement.

Throughout 2020, Colorado maintained relatively low unemployment rates of around 6.2%. And by January 2022, that percentage dropped to 3.7%, which was 0.1% below the national average. [1]

Unemployment Benefits: 

  • Minimum per week: $25
  • Maximum per week: $561 (low formula)/ $618 (high formula)
  • Maximum availability of Benefits: 26 weeks

Find general Information about the Unemployment Insurance Program »

File a UI claim online »

To file a claim by telephone number:

  • 1-800-388-5515
  • 303-318-9000

 Job Centers:

Banking and taxes in Colorado

Colorado has a 0% income tax rate. The state imposes a state sales tax of 2.9%. With local taxes factored in, the total sales tax rate can range between 2.9% and 11.2%.

Banking is fairly common in Colorado much like the rest of the U.S., as 3.3% of Colorado residents do not have checking or savings accounts.

Colorado housing market

Colorado has a fairly expensive housing market. The Denver metro area is considered the fifth least affordable housing market in the country as of February 2022.[2]Things don’t look like they’ll slow down any time soon either, as home prices statewide were up 20.4% year-over-year in March 2022. As a result, the number of homes sold dropped by 9.4% while the number of homes for sale dropped by 13.1%. As a result, while the average U.S. home sells for $388,965, Colorado’s median home price is $620,000.

On top of that, an extremely high number of homes (71.2%) have sold above listing price in competitive bidding wars. The capital, Denver, has a median listing price of $725,000. Comparatively, Colorado Springs has average home listing prices of $495,000, while Boulder has sky-high average prices of $1,449,500.

But be wary, Denver residents may soon face similar high prices to Boulder. The latest projection from the Colorado Association of Realtors is that the average single-family home price in Denver might reach $1 million by Memorial Day. [3]

Colorado currently has homestead exemption of $75,000. This allows a homeowner to protect up to that value of their primary residence. However, the Colorado Senate has approved a consumer debt protection bill that would increase homestead exemptions from $75,000 to $250,000.[4]

  • 65.2% of Coloradoans are homeowners
  • Median mortgage payment: $1,681
  • Median rent payment: $1,271

For those seeking mortgage relief, the state of Colorado helps through the Colorado Emergency Mortgage Assistance Program. If you are finding it challenging making rental payments, seek assistance through Colorado’s Emergency Rental Assistance Program (ERAP).

Talk to a HUD-certified housing counselor to get help with the housing challenges you’re facing.

Retirement in Colorado

Considering the average Coloradoan needs about $977,000 to retire comfortable in the state, it’s a little startling that the average Colorado resident only has $426,970 saved. That means the average retiree is $550,030 short of where they need be to live comfortably in retirement.

Colorado has the third lowest property taxes of any state. On top of this, the state has no income tax and they have low pension taxes, making Colorado appealing to retirees. Especially, when you consider one in five retirees rely on Social Security for 90% of their income.

Average Colorado insurance premiums

Colorado, much like most states in the U.S., operates under a fault-based system for car accidents. Basically, if you are “at-fault” for causing a collision, you are responsible for the collision plus any other expenses. Auto insurance premiums are fairly high at $1,574.

When it comes to average annual home insurance premiums expect to fork out a hefty $2,412 annually. Similarly, annual health insurance premiums are fairly standard at $4,524.

Helpful resources for Coloradoans facing hardship

Food insecurity

RegionFood BankPhone NumberAddress
Colorado SpringsCare and Share Food Bank(719) 528-12472605 Preamble Point, Colorado Springs, CO 80915
DenverFood Bank of the Rockies(303) 371-925010700 E. 45th Ave, Denver, CO 80239
GreeleyWeld Food Bank(970) 356-21991108 H Street, Greeley, CO 80631
LouisvilleCommunity Food Share(303) 652-3663650 S. Taylor Ave., Louisville, CO 80027
LovelandFood Bank for Larimer County(970) 493-44775706 Wright Drive, Loveland, CO 80538

Veterans

As of 2019, Colorado was home to 373,795 Veterans. These resources are available to help Veterans that are facing unemployment, homelessness, and other hardships.

The Colorado Division of Veterans Affairs
National crisis hotline: (800) 273-8255
Colorado Veterans Support Line: (844) 458-3760
Headquarters:
155 Van Gordon, Suite 201 (first floor)
Lakewood, CO 80228

The Colorado Department of Military and Veteran Affairs
Adjutant General’s Office: 720-250-1500
Headquarters:
Department of Military & Veterans Affairs
6848 South Revere Parkway
Centennial, CO 80112

Facilities in Colorado »

Helpful employment resources for Veterans:

How Consolidated Credit helps Colorado residents find debt relief

Consolidated Credit has provided free credit counseling services to 2,808 credit users in the state of Colorado in 2021. Of those, 199 went on to consolidate their debt with our help through a debt management program (the average amount of debt enrolled was $10,683). Those who did not enroll received a free debt analysis, complementary budget evaluation, and were directed to the right solutions for their respective situations.

We’d also like to congratulate the 143 Colorado residents that got debt-free last year with the help of Consolidated Credit!

Relief options to consider if you’re in debt in Colorado

If you have good credit and need to pay off credit card debt and other non-secured debts, a debt consolidation loan is an excellent option for you. By having good credit, you can refinance your debt at a low-interest rate and enjoy one monthly payment. This will help you get out of debt faster, and you may wind up paying less each month. This is an excellent solution for Coloradoan residents with high debt and a good credit score.

Coloradoan homeowners may qualify for a home equity loan or a home equity loan of credit, sometimes called a (HELOC). These types of loans use the equity in your home. Due to rapid home value increases, many residents have equity in their homes. The loan allows you to borrow against the equity in your home and pay off credit cards and other debt. This is not a step to take lightly because you could lose your home in foreclosure if you can’t make the payments. If you are considering borrowing against your home, call 1-800-435-2261 to speak with a HUD-certified housing counselor to make sure this is a safe option for you.

Consolidated Credit helps Colorado residents with counseling programs that identify the best way to get out of debt after considering their situations. Coloradoan residents can get a confidential debt and budget evaluation from a certified credit counselor. Afterward, the counselor will go over the available options and which course of action best meets a person’s needs and goals.

In Colorado, as in other states, it’s best to avoid bankruptcy. If you can afford to repay all that you owe to avoid credit damage but can’t do it on your own, a debt management program can help. You enroll through a credit counseling agency. The agency will work with your creditors to reduce or eliminate interest and work out a payment schedule. Qualifying Coloradoans can get out of debt in 36-60 payments, on average.

Another option for Colorado residents is debt settlement. With debt settlement, you settle your debt independently or with the help of a debt settlement company. In this program, you agree to pay your creditors a portion of what is owed. This will damage your credit rating because you are not paying on the terms you first agreed to. Late payments, which are often part of this program, will hurt your credit rating for seven years. Even with those negatives, this can be an excellent program for Coloradoan residents with overwhelming debt. It can help you avoid bankruptcy.

If you’re curious how we can help you, below, you will find a few case studies from clients that we’ve helped in Colorado. If you’re facing challenges with debt, call us at (844) 276-1544 to receive a free debt and budget evaluation from a certified credit counselor.

Don’t waste another sleepless night stressing about your debt. Talk to a certified credit counselor to explore your options for debt relief.

Case Study

Jennifer from Highlands Ranch, CO

“Consolidated Credit has helped me so much and in 4 years with less than one to go, most of the credit card debt I accumulated in a decade of overspending is gone and I’m almost debt free. ”

Where she started:
  • Total unsecured debt: $23,977.00
  • Estimated interest charges: $13,121.43
  • Time to payoff: 11 years, 11 months
  • Total monthly payments: $959.08
After DMP enrollment:
  • Average negotiated interest rate: 5.20%
  • Total interest charges: $2,684.55
  • Time to payoff: 4 years, 3 months
  • Total monthly payment: $529.00
Time Saved

7 years, 8 months

Monthly Savings

$430.08

Interest Saved

$10,436.88

Case Study

Kimberly from Boulder, CO

“I’ve been very happy with the services. You’re always helpful with excellent service and customer support. I’m really glad I found you and it’s comforting to know my credit card debt will be gone soon. ”

Where she started:
  • Total unsecured debt: $17,960.21
  • Estimated interest charges: $9,890.11
  • Time to payoff: 10 years, 10 months
  • Total monthly payments: $718.41
After DMP enrollment:
  • Average negotiated interest rate: 3.29%
  • Total interest charges: $1,181.93
  • Time to payoff: 4 years, 4 months
  • Total monthly payment: $370.00
Time Saved

6 years, 6 months

Monthly Savings

$348.41

Interest Saved

$8,708.18

Case Study

Michael from Arvada, CO

“I’m finally on the road to recovery! Thanks. ”

Where he started:
  • Total unsecured debt: $53,115.00
  • Estimated interest charges: $30,604.24
  • Time to payoff: 15 years, 5 months
  • Total monthly payments: $2,124.60
After DMP enrollment:
  • Average negotiated interest rate: 6.92%
  • Total interest charges: $9,937.81
  • Time to payoff: 4 years, 4 months
  • Total monthly payment: $1,218.00
Time Saved

11 years, 1 month

Monthly Savings

$906.60

Interest Saved

$20,666.43

Ready to see if Consolidated Credit’s debt management program can help you, too? Get a free evaluation from a certified credit counselor today.