Debt Consolidation: Denver Residents Have Options AvailableAugust 3, 2022
The good news is that the financial health of the metro Denver area is more robust than the rest of northern Colorado. The median household income for Denver residents is $60,260 compared to $49,960. The per capita personal income is $57,773 compared to $45,065 for northern Colorado and $51,999 for the state as a whole. This disparity is due mainly to two things: many Denver residents attain higher education levels, and they have a higher-than-average concentration of two-income households. In fact, the metro Denver area not only beats out other Colorado cities in this regard but most of the nation as well.
If you live in the Denver area but your income isn’t quite as robust, you may be struggling to pay bills and it’s possible you’re growing a mountain of debt instead of a healthy savings account. If that’s the case, you’ll be pleased to know there are debt relief strategies out there. One savvy solution is to look into getting a debt consolidation loan. There are other options too, but this is one of the most common and works well for a great many Denver consumers. For this purpose, most loans are secured to protect the lender’s financial outlay, but it is possible to obtain an unsecured loan.
Debt Consolidation Loans
If you get a secured loan: you’ll need to put up a high-value asset like your home or car. While this type of loan allows you to get more favorable terms and a lower interest rate from the lender, it does have its downside: you run the risk of losing your collateral if you get behind with the payments.
If you get an unsecured loan: you won’t be asked to put up collateral, but you’ll have to pay higher interest rates since the lender is taking more of a risk. But this type of loan is harder to get and comes with higher rates. But there are certain consumers for whom this option makes sense (assuming they can find a lender willing to take a chance on them.)
Choosing a Lender
If a debt consolidation loan looks like the right choice for you, the next step is to do your research. You need to find a reputable lender who can offer you favorable interest rates and terms. It’s a good idea to compare several loan companies, which you can do quickly online. In addition, make sure to read consumer reviews so you can find a lender you can trust.
Before you sign anything, consider the following:
Are you comfortable with the payment terms? If you opt for a shorter time to pay back the loan, your monthly payments will be higher. The reverse is true too: longer terms = lower payments.
Are there pre-payment penalties? Avoid companies that penalize you for paying off the loan sooner than the agreed-upon dates.
What kind of fees is the lender charging? Consider the Annual Percentage Rate (APR) being charged and not just the interest rate. Make sure the origination fee (if applicable) is included in the APR.
How does the company rate for customer service? Check the reviews—you’re looking for a company with representatives available by phone or chat to help you when needed.
Freedom Debt Relief offers free debt evaluations from our Certified Debt Consultants to help you find the right solution. Call 800-910-0065 today to see whether debt consolidation or another method is the right choice for your unique financial situation.
Request a free debt evaluation to find out how we could help you:
- Resolve your debt faster
- Significantly reduce what you owe
- Make one low monthly program payment
Denver Debt Statistics
Many Denver residents are concerned about their debt levels. If you’re concerned about yours, you’re not alone. In 2017, on average, Denver residents held three credit cards with balances of $4,541. While this is 9% less than the national average, it’s still cause for concern if you’d rather be saving money instead of amassing debt.
In Colorado, creditors have 6 years to take action on consumers unable to pay what they owe. Rather than trying to avoid your creditors and collection agencies (think phone calls and letters), which can add worry to an already fraught situation, take control of your financial future now.
Start looking into debt resolution today. Whether it’s debt consolidation or another method, you’ll gain peace of mind by knowing you’re headed in the right direction. All you have to do is make that first call. Contact Freedom Debt Relief now at 800-910-0065 for a free debt evaluation from one of our highly trained Certified Debt Consultants.