Coloradans are getting squeezed by credit cards while trying to navigate high costs |
Colorado’s breathtaking landscapes are increasingly overshadowed by breathtaking bills. Despite a high-growth economy, many households face a concerning paradox. Expenses are rising, 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 a vital safety net. 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 primary reason for their debt. Another 41% point to unexpected emergencies, such as medical bills or car repairs.
From 2024 to 2025, there was a 6.5% increase in Coloradan’s average debt. This increase has caused household savings to deplete faster than the national average.
I am a professor and the chair of the Department of Marketing at the University of Denver’s Daniels College of Business. My research investigates debt payment strategies and consumer welfare.
Colorado cost of living increases
Colorado’s overall cost of living is 12% higher than the national average. While groceries and healthcare are generally on par with the rest of the country, the state’s overall affordability is impacted by housing and childcare.
Denver’s housing costs are 22% above the U.S. average, while mortgage debt accounts for a 77.4% of all household debt in the state. This takes up a large portion of a family’s monthly income.
And homeowners face soaring insurance premiums – including a 47% gain in 2025. And infant childcare now averages almost $21,000 a........