Debt consolidation in Colorado

The interest on a typical Colorado balance

Take the Colorado average of $4,910 and pay it off in 36 months. At a 24% card APR the payment is about $193 a month and the interest about $2,025. With a 12% consolidation loan the payment drops to about $163 and the interest to about $961, a difference of $1,064.

People who carry a balance usually owe more than the per-adult average. On $12,500 the same comparison is $5,155 of card interest against $2,446 on the loan. These rates are examples, not offers. Your APR depends on your credit, income and the lender, and an origination fee reduces the savings. See what lenders look for.

Personal loan rules in Colorado

Colorado caps most licensed consumer loans on a sliding scale, 36% a year on the first $1,000, 21% on the next $2,000 and 15% above $3,000, or 21% on the whole balance. Small loans of $1,000 or less can use a fee-based alternative that produces a higher APR. Lenders charging more than 12% need a supervised lender license.

• Supervised (licensed) consumer loans: The greater of (a) 36% a year on the first $1,000, 21% on $1,000 to $3,000 and 15% above $3,000, or (b) 21% a year on the whole unpaid balance (Colo. Rev. Stat. § 5-2-201(2))
• Consumer loans of $1,000 or less by supervised lenders (alternative charges): An acquisition charge (8% of the amount financed, per NCLC 2025) plus a monthly installment account handling charge, in place of § 5-2-201 rates (Colo. Rev. Stat. § 5-2-214)
• Consumer loans by lenders that are not supervised lenders: 12% a year (Colo. Rev. Stat. § 5-2-201(1))

The National Consumer Law Center puts the highest APR allowed in Colorado at 78% on a $500, six-month loan and 31% on a $2,000, two-year loan (Predatory Installment Lending in the States: How Well Do the States Protect Consumers Against High-Cost Installment Loans? (2025), National Consumer Law Center, December 2025).

Non-bank lenders need a state license to make these loans. License: Supervised lender license (Colorado Uniform Consumer Credit Code) (Colo. Rev. Stat. §§ 5-2-301, 5-2-302).

NCLC says a 2018 ballot measure (Proposition 111) capped payday-style loans at 36% APR. A 2023 law (H.B. 23-1229) cut small short-term loan charges and opted Colorado out of the federal law that let some out-of-state banks ignore Colorado's rate caps.

Compare rate caps in every state. Checked 2026-09-30. Summary for general information, not legal advice. Laws change, and banks chartered in other states may follow different rules. Sources: Colo. Rev. Stat. § 5-2-201; Colo. Rev. Stat. § 5-2-214; Colo. Rev. Stat. § 5-2-301; Colo. Rev. Stat. § 5-2-302; NCLC, Predatory Installment Lending in the States (2025), main report with Map 1 ($500) and Map 2 ($2,000); NCLC, Predatory Installment Lending in the States (2025), Appendix C: state lending laws; NCLC fact sheet, State APR Caps for $500, $2,000 and $10,000 Installment Loans (Nov. 2024).

Interest saved at different balances

With Colorado balances among the highest in the country, here is how the same 24% card vs 12% loan comparison scales. Each line is a 36-month payoff.

Where the $4,910 fits in Colorado household debt

Card balances per adult are up 28.5% since 2019, faster than the national +28.3% (17th fastest of 51). Balances fell from $3,820 in 2019 to $3,350 in 2020, when spending dropped and stimulus paid down cards, then climbed back to $4,910 by 2025.

Card debt is the most expensive balance most households carry, which is why it is usually the first target for consolidation. In Colorado, cards, auto loans and student loans add up to $16,010 per adult, 3% above the national $15,470.

Your options in Colorado

• Debt consolidation loan: one fixed payment and end date, worth it when the APR is clearly below your card rates. How to compare offers.
• Balance transfer card: a 0% introductory APR can beat a loan if you can clear the balance before the promo ends. Balance transfer vs personal loan.
• Debt management plan: a nonprofit credit counseling agency negotiates lower rates with your card issuers. Useful if you cannot qualify for a loan. DMP vs consolidation.

Colorado next to its neighbors

Among the 8 Mountain states, Colorado has the 2nd highest card debt per adult.

• Nevada: $5,060 per adult, 16.28% 90+ days late
• Colorado: $4,910 per adult, 11.06% 90+ days late
• Arizona: $4,530 per adult, 13.67% 90+ days late
• Utah: $4,260 per adult, 9.45% 90+ days late
• Wyoming: $3,990 per adult, 10.54% 90+ days late
• Idaho: $3,870 per adult, 9.52% 90+ days late
• Montana: $3,850 per adult, 9.78% 90+ days late
• New Mexico: $3,520 per adult, 11.9% 90+ days late

How many Colorado borrowers are behind

11.06% of credit card balances in Colorado were seriously delinquent (90+ days) at the end of 2025. That is 1.3 points below the national rate of 12.36%, placing Colorado 30th of 51 for card delinquency (1st is the highest). The rate rose 1.3 points in the past year, from 9.77% in 2024. In 2019 the share was 6.46%.

Auto loan delinquency in Colorado stood at 4.01% (US 5.18%), and student loan delinquency at 7.53% (US 8.25%). If your payments are current, you are in a better position to qualify for a lower rate. If not, read our guide to consolidation loans with bad credit .

Checking a lender in Colorado

Non-bank consumer lenders in Colorado are licensed by the Colorado Department of Law, Consumer Credit Unit (Administrator of the Uniform Consumer Credit Code). Before you accept an offer, look up the lender's license. To report a problem, file with the Colorado Attorney General, Consumer Protection Section or the CFPB. Never pay upfront fees for debt relief.