Colorado Debt Consolidation



Debt Help in Colorado

When medical bills, credit card bills, back taxes, and other bills start to pile up, some consumers begin to feel as though they are barely treading water, doing everything they can to stay on top of their finances but failing to do so. Those living in Colorado and dealing with large debt loads have some options they can choose from as they seek a way to manage their debt.

Colorado Debt Consolidation and Credit Counseling

Before turning to any type of loan or debt relief programs, you should look into Colorado credit counseling options. Credit counseling programs aim to teach you about money and how to better handle it so that you can pay down your debt. Often, simply having someone come alongside you as you attempt to get your finances in order is all you need to be successful in getting out of debt.

The United States Bankruptcy Court Trustee Program offers approves reputable credit counseling agencies for consumers to use when they face bankruptcy court proceedings. Even if you are not filing for bankruptcy, this list is a good reference to use when seeking a qualified credit counselor. These companies have proven to the federal government that they operate with the best interests of consumers in mind, rather than for their own purposes. To find Colorado’s list, visit http://www.justice.gov/ust/eo/bapcpa/ccde/cc_approved.htm and search for “Colorado.”

Once you have begun credit counseling, you may find that a debt consolidation loan is the best choice for working with your debt. Debt consolidation involves lumping all debt into one loan in order to lower the monthly cost or make it possible to pay it off more quickly. Most of the time, especially when the debt is in the form of credit cards, consolidation loans are more affordable and carry a lower interest rate.

To find a Colorado debt consolidation loan, start by talking to your bank or mortgage provider. Often these lenders have access to excellent programs you can use to consolidate your debt. If you own your home, a home equity loan provides an excellent means to an affordable rate on a debt consolidation plan.

Colorado Debt Relief Programs

Debt relief programs in Colorado focus on lowering the amount of debt a consumer has to pay. Often these programs aim to work out a debt settlement between the consumer and the lender or credit card company. This means that the lender offers to eliminate some of the debt in return for a partial, lump-sum payment.

Colorado residents will find many debt relief programs available to them. If you decide to use a debt relief company, carefully study your options, learn all of the costs involved with the program, and always go through credit counseling before deciding on debt relief. While the idea of paying off less than what you really owe is, of course, appealing, there is a cost for debt relief services, so it might not be the best option.

Colorado Debt Collection Laws

Colorado follows the Fair Debt Collection Practices Act, a set of federal laws that protect debtors from unfair practices of debt collectors. This act outlines what debt collectors can and cannot do in an attempt to collect a debt. For instance, they are not allowed to use threatening language, harass you, or threaten violence when they call. They also may not call with the intent to annoy, nor may they call before 8 a.m. or after 9 p.m. If you wish to stop any further communication with the debt collector, you can inform them in writing and they must stop, with the exception of contacting you when something is changing in regards to your account.

In addition to the laws outlined in the FDCPA, Colorado enforces the following requirements:

• A debt collector must identify himself within 60 seconds when the debtor identifies himself on the phone.
• Debt collectors must provide receipts for any payments the debtor makes that do not have physical evidence, such as cash payments.
• Debtors may request account statements in writing. If they do, collection agencies must provide it without charge within 10 days.
• The first communication a consumer receives from the debt collector must have this statement: “For information about the Colorado Fair Debt Collection Practices Act, see www.ago.state.co.us/cadc/cadcmain.cfm.”

If you have a complaint about the a creditor collecting its own debts, contact:

Uniform Consumer Credit Code
1525 Sherman St.
7th Floor
Denver, CO 80203
303-866-4494

For complaints about debt collectors or their agencies, contact:

Colorado Collection Agency Board
1525 Sherman St.
7th Floor
Denver, CO 80203
303-866-5304

Colorado limits the amount of interest any collection agency can charge to 8 percent. Also, 75 percent of any debtors earnings or 30 times the federal minimum wage, whichever amount is higher, are protected under Colorado’s Wage Protection. Also, pensions and insurance payments are included under Wage Protection laws.

Colorado’s statute of limitations for all forms of debt is six years. This means that your creditors have six years after your debts become delinquent to start any legal proceedings against you. If they fail to do so within the statute of limitations time period, you are exempt from any lawsuits.

Colorado Mortgage Assistance Programs

Whether you are facing foreclosure because of your money problems or are wondering how you can get a home with the poor credit you have, Colorado mortgage assistance programs can help. For those facing foreclosure, the Colorado Foreclosure Hotline places homeowners in contact with non-profit housing counselors, which offer sound advice about foreclosure options. This phone number is 1-877-601-HOPE. The Make Home Affordable federal refinance option can help some distressed homeowners refinance their homes and stay in them through tough financial times.

Potential home buyers can contact the Colorado Housing Assistance Corporation (www.coloradohousingassistance.org) to seek supportive financial counseling and loan programs as they seek to buy a home. In addition, those seeking to live in rural Colorado can get USDA home loans at an affordable rate. These loans look at income only, not credit rating or down payment, and are offered directly from the Department of Rural Development. FHA loans are an option for those who do not wish to live in a rural community but need to buy a home with less-than-perfect credit. FHA loans are government-backed loans offered through traditional lenders with support of the Federal Housing Administration.

Colorado Government Assistance Options

Colorado does not have any specific debt assistance programs available to its residents. However, other programs, like Colorado Works or the state’s Telephone Assistance Program, help consumers pay other bills. This can make a large debt load easier to manage.

Leave a Comment