Is Debt Out of Control For Colorado Residents? A Look At Collections Accounts

Large amounts of debt is an unfortunate reality for many of us in Colorado. Debt can get out of control extremely easily. One day you open a credit card for a few bills and purchases, next thing you know, you are struggling to make minimum payments every month.

The cost of living is continuing to rise in Colorado. Many of us are struggling here in Colorado, but are we getting ourselves so far in debt that we can not climb out? Here is your answer.

Colorado Debt Compared to Rest of Nation

When it comes to household debt, Colorado has the third highest on average. The average household in Colorado has $84,730 in unpaid debt.

Auto loans, mortgages, student loans, and credit card bills are stacking up quickly.

Get our free mobile app

If you are struggling with debt, I would recommend using the snowball method. This helped me tremendously. Here is what you do: Make additional payments on your lowest debt balance.

Once that is paid off, take that payment amount and add it to your next smallest debt. Then it snowballs from there.

This will help you pay off your debt quickly while minimizing the amount of interest you are paying.

Are Coloradans Managing or Struggling with Debt

Although we have the third highest amount of debt in America, Coloradans can pay the debt more easily. Once a debt goes unpaid for a long period of time, the debt is sent to collections.

WalletHub ranked the states with the most and least amount of collections accounts per household and we noticed surprising results.

Colorado had the eighth least amount of collection accounts per household.

This means that, yes, Coloradans are in significant debt. However, Coloradans can keep their accounts in good standing before they reach collections and hard inquiries on their credit report.