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Colorado’s breathtaking landscapes are increasingly . Despite a , many households face a concerning paradox. , but wages have not kept pace. To fill the gap, many families now rely on high-interest credit cards.

Credit cards were once for extra purchases. Now, for some people, they are . Many people rely on revolving debt, which moves balances from one card to another, with lower rates month to month. In Colorado, 33% of debtors now cite everyday expenses – groceries, utilities and childcare – as the . Another 41% point to unexpected emergencies, such as medical bills or car repairs.

From 2024 to 2025, there was a 6.5% increase in . This increase has caused household savings to deplete .

I am a professor and the chair of the Department of Marketing at the �Թϴ�Ӫ’s Daniels College of Business. My research and consumer welfare.

Colorado cost of living increases

Colorado’s overall cost of living is 12% higher than the . While groceries and healthcare are generally on par with the rest of the country, the state’s overall affordability is .

Denver’s housing costs are 22% above the U.S. average, while mortgage debt accounts for a 77.4% of all . This takes up a large portion of a family’s monthly income.

And homeowners face soaring insurance premiums – . And infant childcare now averages .

Overall, inflation has cost the average family in Colorado . And those expenses are only going up. In 2025 alone, the average Colorado household – like shelter, utilities, insurance and groceries – than they did in 2019.

Yet from 2016 to 2023, spending grew about . As costs rise and incomes stagnate, many families . These households are left with no choice but to and essentials onto their credit cards.

Where Colorado ranks and why in credit card debt

Colorado ranks for the highest average credit card debt . The national average balance in 2025.

A small percentage of individuals with large debt balances drive the average up. The median represents the exact middle point of the population. The median amount of credit card debt per person is $3,305 in Colorado, . The average person in Colorado pays $266 toward their credit card bill each month. Thus, it would take the average and $421 in interest to pay off the debt balance.

In most realistic cases, however, borrowers are trapped in , where borrowers continually carry a revolving credit balance from month to month while making only .

The demographics of debt

The burden of credit card debt is not distributed equally. Generation X, ages 45–60, carries the . Their . This group faces the “.” They must often support both adult children and aging parents. This is difficult due to Colorado’s high healthcare and living costs.

Millennials, ages 29–44, hold the second-highest . For them, credit cards often serve as a stopgap measure for massive housing costs and childcare as they navigate starting and supporting a family. Their average debt levels have .

Generation Z, ages 18–28, carries – around $3,493. However, they face the fastest rate of debt growth, with their balances surging nearly . These young adults entered the workforce during peak inflation. They rely on revolving credit much earlier in their careers than previous generations.

This debt crisis exposes deep income and demographic disparities, illustrating a “. Lower-income earners with annual household incomes under $50,000 are . Over 56% of middle-income households in the carry a balance. In contrast, only 25% of top earners do so, .

Women are also significantly a balance than men, 50% versus 43%. This stems from earnings gaps and in an inflationary environment.

Furthermore, face a persistent credit gap. More than 10% of Black households and 9% of Hispanic households in Colorado lack access to standard bank accounts and . This pushes them toward even higher-interest alternative debt products, such as payday and pawn shop loans.

Solutions: Pathways out of the debt trap

Overcoming credit card , especially with interest rates exceeding 21%.

For debt repayment, and behavioral economics point to two popular strategies: the “debt avalanche” and the “” methods.

The avalanche method focuses on mathematical efficiency – those with debt allocate every extra dollar to the balance with the highest interest rate while paying the minimums on the rest. This saves the most money over time.

Conversely, the snowball method leverages human psychology. By paying the smallest balance first, you achieve “quick wins” that build momentum.

For those who feel entirely overwhelmed by their financial situation, formal interventions are effective. Nonprofit credit evaluate their budgets and enroll in . Under a plan, counseling agencies negotiate directly with creditors to lower interest rates and waive fees. This consolidates debt into one manageable monthly payment.

Studies evaluating the National Foundation for Credit Counseling’s program show its effectiveness. Clients who receive financial counseling their revolving debt over time.

Finally, Coloradans do not have to navigate this crisis alone. Residents can contact their local . These offices provide free financial coaching and consumer protections. They also offer access to safe banking products.

If you’re in debt, seeking outside assistance can help you break the cycle of revolving debt and build long-term financial stability.

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