Money Problems: Coloradans Average $8,000 in Credit Card Debt
Credit card debt is one of the largest financial struggles for Americans. This year, credit card debt hit a record-shattering $1 trillion. Coloradans struggle with credit card debt as well. The rising cost of living is likely the biggest culprit.
WalletHub crunched the numbers and discovered that Colorado residents have the 18th highest amount of credit card debt.
That most likely doesn't sound severe to you. However, the amount that each household is staggering.
A Glance At Colorado's Credit Card Debt
On average, households in Colorado average $8,644 in credit card debt. It is important to note that this number is strictly credit card debt. Student loans, car payments, and other debts are not included. Overall, Coloradans owe credit card companies over $22 billion.
Coloradans Are Continuing To Rack Up Debt Too
According to a WalletHub report, Coloradans experienced a significant surge in credit card usage from April to July this year. During this period, credit card debt in the state jumped by almost $805 million.
This highlights that Coloradans may be in financial trouble and need to find resources to help.
Our Neighbors in Wyoming Have Less of a Burden
The Cowboy State was ranked for having the lowest amount of credit card debt. The numbers are still surprising, though. The average household owes $7,667 to credit card companies.
Ways To Eliminate Credit Card Debt If You Are Struggling
Use the snowball method: I am currently doing this. You start by putting $1,000 in savings over time. Then, make additional payments on your card with the highest APR. Once that card is paid off, you take that full payment, including the additional payments, and pay that same amount to a different card.
Get a balance transfer card: There are many credit cards that will take on your debt. You pay off your cards with the new card. Balance transfer cards typically have lower interest rates, which means you will pay less over time.